All businesses operating in the United Arab Emirates are required to file corporate tax returns based on the regulation, and failure to do so may result in severe penalties and fines. Since the corporate tax in the UAE was introduced, companies are getting ready to submit their tax returns by the Federal Tax Authority’s (FTA) deadlines.

The Ministry of Finance originally announced the UAE Corporate Tax Law in January 2022. It will go into effect on June 1, 2023, and applications will be accepted until January 2024. While profits under AED 375,000 are taxed at 0%, the legislation sets a business tax rate of 9% on taxable profits made each year. This new tax system is in line with international tax best practices.

Every taxable entity must register for corporate tax and have a tax registration number; in some circumstances, the tax authorities may even request that exempt organizations register.

What is Corporate Tax Return Filing in the UAE?

Corporate tax return filing in the UAE is the process of submitting a detailed financial report to the relevant tax authority that comprehensively outlines the company’s income, expenses, and tax liabilities for a specific period. Who files corporate taxes? This return is filed by the taxable entity and provides critical information regarding the company’s corporate tax obligations and payments based on corporate tax eligibility in the UAE.

Under the UAE Corporate Tax Law, the tax return must be filed within a designated timeframe set by the tax authority. When the authority requests additional documents, records, or information, the taxpayer is obligated to provide them promptly to ensure compliance with the law.

Is Filing a Corporate Tax Return Required in the United Arab Emirates? 

The Federal Tax Authority (FTA) mandates that all companies operating in the United Arab Emirates file tax returns and pay taxes on their taxable income in compliance with UAE tax laws. 

UAE tax laws apply to both foreign and local companies, and failure to file or pay taxes may result in penalties and fines. Even if a business does not have any revenue, it must still file a corporate tax return because all taxpayers must adhere to filing requirements, regardless of their income or operational status.

Components of Services for Filing Corporate Tax Returns

Giving thorough details about the company’s earnings, outlays, and overall financial performance is crucial when submitting a corporate tax return. This guarantees that the amount of taxes due to the government is calculated accurately.

The following are the essential papers needed to file corporate tax returns:

Financial Records: Current and comprehensive financial reports.

Calculations of Taxable Income: A summary illustrating variations in the net outcome in accordance with accounting rules.

Schedules of Depreciation and Amortization: Records detailing the procedures of tax depreciation. Records describing intercompany transactions and pricing strategies are known as transfer price documentation.

Information on Related Party Transactions: Specifics about deals involving affiliates or related parties.

Movements of Provisions and Reserves: An overview of any reserves or provisions that have an impact on taxable revenue.

Our tax professionals at Accountax guarantee accurate corporate tax return preparation, lowering audit risk, and optimizing our customers’ qualified tax claims.

How UAE Corporate Tax Filing by Expert Corporate Tax Filing Services Makes the Difference

Many firms decide to use expert corporate tax filing services because of the intricacy of tax laws and the imperative necessity for compliance. These services assist companies in optimizing their tax situation, avoiding costly errors, and meeting all regulatory obligations.

In the UAE, expert corporate tax filing services usually provide:

Assistance with Tax Registration: Professional guidance during the Federal Tax Authority (FTA) registration procedure, guaranteeing smooth compliance.

Support for Record Maintenance: Help in keeping accurate and comprehensive financial records while adhering to UAE tax regulations.

Tax Calculation Services: Professional advice on figuring out the proper corporation tax due, finding allowable deductions, and precisely estimating taxable income.

Return Preparation and Filing: Complete assistance with tax return preparation and submission through the EmaraTax site, guaranteeing adherence to all due dates.

Monitoring Compliance: Ongoing support to keep your company compliant throughout the year and stay abreast of evolving tax laws.

Businesses may reduce the possibility of mistakes, expedite the filing process, and guarantee compliance with UAE tax regulations by collaborating with experts and meeting the Corporate tax filing requirements seamlessly.