What is the Deadline for Filing Corporate Tax Returns?

What is the Deadline for Filing Corporate Tax Returns?

Taxpayers are required by the UAE Corporate Income Tax (CIT) Law to submit their tax returns within nine (9) months after the conclusion of the applicable tax period. The initial filing date is September 30 of the following year for taxpayers whose fiscal year coincides with the calendar year (ending December 31).

The Federal Tax Authority (FTA) has extended the corporate tax filing deadline UAE for some taxpayers in Decision No. 7 of 2024 in order to alleviate the difficulties that taxpayers have in fulfilling their CIT duties.

Who Does the Extension Apply To?

The following are subject to the revised deadline of December 31, 2024:

  • Taxable individuals who were created, incorporated, or acknowledged in accordance with UAE law on or after June 1, 2023.
  • Taxpayers whose tax period concluded on February 29, 2024, or earlier. 

Taxpayers covered under this decision now have until 31 December 2024 to settle any CIT payable, providing much-needed financial and operational flexibility.

Key Implications for Taxpayers

This ruling gives taxpayers who were covered by it until December 31, 2024, to pay any CIT owed, giving them much-needed operational and financial flexibility.

Important Consequences for Taxpayers

The Federal Tax Authority’s (FTA) dedication to fostering a favorable tax environment by easing compliance burdens and meeting company demands is reflected in this extension. The extra time enables taxpayers to carefully prepare and check the correctness of their tax returns.

Individuals Subject to Taxation FTA Decision No. 7 of 2024 does not include

The original corporation tax (CT) payment and return filing dates specified in Articles 48 and 53 of the UAE CT Law will still apply to some taxable people, as the FTA has made clear. Filing must be completed by nine (9) months following the conclusion of the applicable tax period.

As a result, these taxpayers are exempt from the terms of FTA Decision No. 7 of 2024 and are required to follow their previously set deadlines.

Exemption from Penalties for Inaccurate Returns Submitted by the Initial Deadline

The FTA has made it clear that there will be no fines for inaccurate reports filed before the initial deadline of September 30, 2024. In particular, in view of the extension granted in FTA Decision No. 7 of 2024, the AED 500 penalty specified in Violation No. 9 of the Table of Violations and Administrative Penalties under Cabinet Decision No. 75 of 2023 shall be waived.

The Significance of Timely Filing

To avoid tax filing penalties in UAE, business tax returns must be filed on time. Fines for late tax return submission date rise in proportion to the length of the delay. Businesses may be subject to fines for late tax payments in addition to a set monthly penalty for each past-due month.

Businesses may maintain efficient operations, stay in good status with the tax office, and avoid needless financial difficulties by complying on time. Prioritizing timely filing allows businesses to protect their brand and concentrate uninterruptedly on accomplishing their strategic objectives.



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