Corporate Tax Return Filing in UAE

Corporate tax returns filing in the UAE is not just about fulfilling a legal requirement; it’s also about maintaining transparency and accountability within your business. The implementation of corporate tax in the UAE has been a significant development for businesses operating in the region. While the tax rates are relatively low compared to other countries, it’s still crucial for businesses to accurately file their corporate tax returns to ensure they are meeting their obligations to the government.

By accurately reporting your financial information and paying the appropriate taxes, you are showcasing your commitment to operating ethically and contributing to the growth of the UAE’s economy.

So, let’s thoroughly understand the process of filing corporate tax returns in the UAE and the other essential considerations you should know to keep your business running hassle-free in Dubai

Corporate Tax Return Filing in the UAE refers to the process of submitting a report to the Federal Tax Authority (FTA) by taxable person, detailing your business’s income and expenses for a specific tax period. This report helps the FTA determine your taxable income and the amount of Corporate Tax you owe.

All registered taxable persons must file a corporate tax return, even if they have no taxable income or qualify for a 0% tax rate.

In the UAE, most businesses will need to file corporate tax returns. This includes:

1. Businesses and Individuals

Any entity conducting business activities under a commercial license in the UAE, including both local and foreign companies.

2. Free Zone Businesses

Generally, even free zone entities must file, although Qualifying Free Zone persons with certain benefits may have exemptions (check with the specific free zone authority).

3. Minimum Threshold

Businesses with annual taxable income exceeding AED 375,000 are subject to corporate tax and must file returns. Those below this threshold pay 0% tax but may still need to register.

A taxable person under the UAE corporate tax law is any business entity required to pay corporate tax. This includes residents (companies based in the UAE) and non-residents with a permanent establishment or deriving UAE-sourced income.

Certain entities are exempt from corporate tax returns filing in the UAE. Examples of entities that may be exempt include:

1. Public Benefit Entities

Non-profit organizations established for charitable purposes may be exempt, subject to meeting specific criteria.

2. Natural Resource Extraction

Businesses engaged solely in extracting UAE natural resources might follow Emirate-level tax decrees instead.

3. Investment Funds

Certain investment funds that meet the conditions set out in the corporate tax law.

It’s always advisable to consult with a Pro Services tax professional for specific guidance on your situation, especially regarding exemptions and free zone benefits.

The UAE offers businesses a generous window to file their corporate tax returns. The general deadline falls 9 months from the end of the relevant tax period. This applies to both resident and non-resident businesses operating within the UAE.

The UAE operates under a self-assessment system for corporate tax. This means businesses are responsible for calculating, reporting, and paying their tax liability.

Let’s consider a company with a financial year ending on December 31, 2025 (tax period January 1, 2025 – December 31, 2025).

Adding 9 months to the end date (December 31, 2025) brings us to September 30, 2026.

Therefore, this company would have a deadline of September 30, 2026, to file its corporate tax return for the 2025 tax period.

Filing a corporate tax return in the UAE requires the submission of specific documents which typically include: 

• Copy of Trade License (valid and unexpired) 

• Emirates ID copies of Owners/Partners/Shareholders 

• Passport copies of Owners/Partners/Shareholders 

• Memorandum of Association (MOA), if required 

• Financial Statements 

• Records Supporting Deductions (Receipts, invoices, and other documentation for expenses) 

• Taxable Income Calculations 

• Details of Depreciation and Amortization 

• Loan Documents (if applicable) 

• Records of Exempt Income (if applicable) 

Penalties for Late Filing of Corporate Tax Returns in UAE. The UAE enforces penalties for late filing of corporate tax returns. A penalty of AED 500 per month applies for the initial twelve months of delay.

After the first year, the penalty increases to a steeper AED 1,000 per month or part thereof. There’s a maximum penalty cap, but the specific amount may vary depending on official pronouncements.

These penalties are imposed to encourage timely filing and ensure tax compliance. Filing late can significantly increase your tax burden, so adhering to deadlines is crucial. The Federal Tax Authority (FTA) has the authority to waive or reduce penalties in specific circumstances. However, it’s best to avoid late filing altogether.

Filing corporate tax returns is crucial for businesses in the UAE to stay compliant and avoid penalties. Given the complexity of tax regulations, seeking corporate tax return filing services in UAE is a good choice.

Pro Services Tax offers top-notch corporate tax return filing services, with a team of dedicated experts ready to handle all your tax and accounting needs. Our tax consultants in Dubai will review your finances and help with tax planning and bookkeeping. Our professionals ensure that your tax returns are filed accurately and on time, helping you avoid any unnecessary fines and maintain a good standing with the authorities.

Don’t stress about filing your corporate tax returns. Contact us today to learn how we can support your business with our reliable and comprehensive tax services.

As UAE’s business income taxes undergo continuous reforms, staying well-informed and compliant is crucial. Seeking guidance from a tax professional firm is the best way to navigate this evolving landscape.

Our corporate tax advisory services at Pro Services Tax Auditing go beyond conventional offerings. Our expert corporate tax consultants in the UAE assist our esteemed clients on matters such as Corporate Tax Registration, Filing CT Returns, and more. We also explain the latest regulations from the Federal Tax Authority, ensuring our clients are well-informed and can avoid corporate tax fines and penalties.

Dedicated to delivering excellence across all aspects of our services, our clients consistently affirm us as their top choice for a wide range of business requirements, especially Corporate Tax Services in the UAE. For swift assistance or any inquiries related to corporate tax, reach out to Pro Services Tax Auditing in Dubai today. Call us at +971563022779 or email info@professionalservices.ae, and rest assured, your queries will be promptly addressed.