UAE Corporate Tax Compliance Guide | Administration

UAE Corporate Tax Compliance and Administration Rules

Key Compliance Steps for UAE Corporate Tax

The UAE started its federal corporate tax law for the first time. Now, every business must follow the new tax rules. Mubarak Al Ketbi (MAK) Auditing helps businesses stay on track. The law says all companies in the UAE must register for tax, file tax returns, pay their taxes, and keep good records.

Here are the most important compliance steps for UAE businesses:

Register for Corporate Tax:
Every taxable business must register with the Federal Tax Authority (FTA) within 30 days after becoming liable for corporate tax.
File Tax Returns:
Businesses must file their CT returns electronically with the FTA before the set deadline.
Pay Tax On Time:
Companies must pay their tax bill on time to avoid penalties.
Keep Records:
Businesses must keep all records and documents for at least five years, so they can prove the numbers on their tax returns.

How UAE Manages Tax Law and Audits

The FTA (Federal Tax Authority) controls all tax activities in the UAE. Mubarak Al Ketbi (MAK) Auditing always reminds clients to follow the FTA’s latest rules. The FTA can:

Issue new regulations or rulings to guide companies.
Do tax audits to check your company’s tax return and find mistakes.
Send tax assessments if they think you owe more tax than you paid.
Allow businesses to appeal tax assessments or penalties using the official process.

You can also read: Registration and Record-keeping Obligations of Exempt Persons Under Corporate Tax

Preparing for UAE Corporate Tax

You need to stay up-to-date about every tax change. Mubarak Al Ketbi (MAK) Auditing gives simple steps for UAE companies to prepare for corporate tax:

Review the Ministry of Finance website to see if your business needs to pay corporate tax.
Watch for the tax start date for your industry or activity.
Learn about your accounting period, the deadline for tax returns, and which financial records you need.
Keep checking the FTA and Ministry of Finance websites for updates.
Keep complete and accurate financial records, because you need them for tax and business.

Financial Statements:
Your financial statements are important. They show your profit or loss and help you calculate taxable income. If your business makes less than AED 3,000,000 in a year, you can use the cash basis for accounting. If your revenue goes above AED 3,000,000, you must switch to accrual accounting.

Tax Applications and Elections

Companies can make “elections” or “applications” to use some tax benefits in the law.

Elections: You choose these yourself, and you don’t need FTA approval. For example, you can choose small business relief or apply general tax rates as a Qualifying Free Zone Person.
Applications: These need FTA approval. They include tax exemptions, letting a group of companies be taxed as one person, or forming a tax group.

Filing Tax Returns and Paying Tax

Every company must file its CT return and pay the tax within nine months from the end of the tax period. If you file late or pay late, you’ll get a penalty.

Clarifications and Assessments:
If you’re unsure about your tax position, you can ask the FTA for clarification. The FTA can also review your company’s taxes if they think you didn’t follow the law.

General Anti-Abuse Rule:
The law has a rule to stop companies from using tricks or fake deals to get a tax advantage that isn’t fair.

Main Tips for UAE Tax Compliance

Mubarak Al Ketbi (MAK) Auditing helps clients with:

Understanding registration and tax deadlines.
Setting up the right record-keeping systems.
Preparing and filing correct tax returns.
Applying for exemptions or special rules.
Getting ready for tax audits.

How Mubarak Al Ketbi (MAK) Auditing Can Help Your Business

When it comes to UAE corporate tax, staying compliant is as important as bread and butter! Mubarak Al Ketbi (MAK) Auditing helps you make sense of every rule, so you never miss a deadline or face a penalty.

We help you with:

Explaining new tax laws in simple language
Helping you register with the FTA
Filing your tax returns on time
Setting up your business to meet all record-keeping rules
Answering your tax questions any time you need help

For more information:

Visit our office: Saraya Avenue Building – Office M-06, Block/A, Al Garhoud – Dubai – United Arab Emirates
Or contact/WhatsApp: +971 50 276 2132

FAQs on UAE Corporate Tax Compliance Guide | Administration

Do individuals pay corporate tax on salary?

No. Salary stays outside CT. A person pays CT only on business income when the person runs a licensed business and crosses the turnover threshold.

Can a free zone company sell to the mainland and keep 0%?

It depends on the activity, the role in the supply chain, and the de-minimis rules. Non-qualifying mainland income generally faces 9%.

Do small firms need audited accounts?

Some firms may use IFRS for SMEs, but certain categories, including many free zone persons seeking QFZP status or entities above revenue thresholds, need audited statements.

What records must a taxpayer keep?

Keep ledgers, invoices, contracts, bank statements, TP files, and working papers for the statutory period. Keep scans and hard copies when needed.

When is the CT return due?

The return and payment are due within nine months after the end of the tax period. Add the date to your calendar with early reminders.