The UAE Corporate Tax (CT) return is not a static form like those in many other countries. There is no opportunity to upload an e-file that would automatically create a downloaded version of the return; instead, filing must be completed online using the EmaraTax portal. The return is dynamic; depending on the choices made by the taxpayers during the filing process, certain questions and schedules will emerge. Even though the UAE’s tax system is rather simple, the CT return asks for a surprisingly high amount of information, including some unexpected things. In order to ensure compliance and fulfill the requirements of the return, taxpayers will need to carefully analyze and plan the required data.

For some organizations established in the United Arab Emirates (UAE) in June 2023 or later, the initial Corporate Tax filing deadlines report and paying their CT liabilities was September 30, 2024. For tax periods ending on or before February 29, 2024, the Federal Tax Authority (FTA) extended this deadline to December 31, 2024, with Decision No. 7 of 2024, released on September 25, 2024. On October 10, 2024, the FTA issued a Public Clarification providing additional instructions on the updated deadline for completing CT returns and settling CT obligations in accordance with this extension.

Deadline for Certain Taxable Persons in December 2024

When to file corporate taxes?

Two primary categories of taxable people are subject to the extended deadline of December 31, 2024:

• Those having a brief tax term that ended on or before February 29, 2024, for whatever cause, including liquidation or discontinuance.
• Entities that were established between June 1, 2023, and September 1, 2023, have a short tax term that ends on February 29, 2024, and adhere to certain fiscal years.

The FTA Decision No. 7 of 2024

In accordance with Articles 48 and 53 of the UAE Corporate Tax Law, the clarification also describes situations for taxable people who will continue to adhere to the initial corporate tax payment and filing dates. Nine (9) months after the conclusion of the tax period, these tax return timings in UAE are imposed. These taxable individuals are exempt from FTA Decision No. 7 of 2024 and are required to follow the initial schedules.

The Original Deadline for Filing

The clarification states that the AED 500 fine outlined in Violation No. 9 of the Table of Violations and Administrative Penalties appended to Cabinet Decision No. 75 of 2023 would not be applied if inaccurate tax returns were filed by the initial deadline of September 30, 2024. The prolongation granted by FTA Decision No. 7 of 2024 is the reason for this exception.

According to the Federal Tax Authority, Article 2 – Deadline to File the Tax Return and Settle the Corporate Tax Payable

For the purposes of Clause 1 of Article 53 of Federal Decree-Law No. 47 of 2022 referred to above, the deadline to file Tax Returns to the Authority shall be no later than 31 December 2024, where all of the following conditions are met: 

1. The Taxable Person was incorporated, established or recognised under the applicable legislation of the State on or after 1 June 2023.
2. The Tax Period of the Taxable Person ended on or prior to 29 February 2024. 

For the purposes of Article 48 of Federal Decree-Law No. 47 of 2022 referred to above, the deadline to settle the Corporate Tax Payable shall be no later than 31 December 2024, where all of the following conditions are met:

• The Taxable Person was incorporated, established or recognised under the applicable legislation of the State on or after 1 June 2023.
• The Tax Period of the Taxable Person ended on or prior to 29 February 2024.

Ensure your business stays compliant with UAE corporate tax regulations. Contact us today for expert corporate tax services tailored to your needs!