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Corporate Tax

Requirement for Filing Corporate Tax Returns in UAE

Timely and accurate filing of corporate tax returns ensures compliance, prevents penalties, and maintains good standing with the Federal Tax Authority (FTA). This article explains the filing requirements, including necessary documentation, filing periods, and obligations for taxable persons, exempt entities, and tax groups. Non-compliance with corporate tax filing requirements may result in penalties, audits, or reputational risks. Thus, businesses are advised to seek the expert services of top Tax Consultants in UAE to timely meet filing requirements and ensure compliance with corporate tax regulations.

Corporate Tax Filing Periods in UAE

According to the UAE Corporate Tax Law, all taxable persons are required to file a corporate tax return for each tax period. The return must be filed no later than nine months after the end of the relevant financial year.

For example:

  • Where the financial year of a company ends on 31 December 2024, its corporate tax return must be filed by 30 September 2025.
  • If the FTA specifies a different date for submission, businesses must comply with this new deadline.

This applies to free zone companies, partnerships, and tax groups. As the filing window is fixed, businesses are encouraged to prepare their financial statements timely.

Information and Documents Required for Corporate Tax Registration in UAE

According to the UAE Corporate Tax Law, all taxable persons are required to file a corporate tax return for each tax period. The return must be filed no later than nine months after the end of the relevant financial year.

For example:

  • Where the financial year of a company ends on 31 December 2024, its corporate tax return must be filed by 30 September 2025.
  • If the FTA specifies a different date for submission, businesses must comply with this new deadline.

This applies to free zone companies, partnerships, and tax groups. As the filing window is fixed, businesses are encouraged to prepare their financial statements timely.

Information and Documents Required for Corporate Tax Registration in UAE

Documents required for corporate tax registration in the UAE include:

  • Tax Period: The financial year or period for which the return is being filed.
  • Business Identification: Legal name, registered address, and the Tax Registration Number (TRN) issued by the FTA.
  • Date of Submission: Reported clearly as per the prescribed format.
  • Accounting Method: Basis of presentation of financial statements (cash basis or accrual basis).
  • Taxable Income: Total income subject to corporate tax during the tax period.
  • Tax Loss Relief: Any tax losses carried forward for relief against taxable income.
  • Loss Transfers: Losses transferred from/to other group companies, if any.
  • Withholding Tax Credit and Foreign Tax Credit: Amounts that are treated as a credit against the UAE corporate tax.
  • Tax Payable: Final calculated corporate tax liability for the period.

In addition to that, companies shall be prepared to submit supporting records, including audited financial statements, bank statements, contracts, and other related financial information, if so, requested by the FTA.

Tip: The FTA can request additional documentation at any time. Maintaining organized accounting records is essential to avoid disputes and penalties.

Special Filing Requirements for Exempt Persons

Not all entities are subject to corporate tax in the UAE. Exempt persons such as government entities, public benefit organizations, and pension funds are exempted by law. However, the FTA may nonetheless request such persons to furnish a declaration to confirm their exempt status.

Filing Requirements for Unincorporated Partnerships

For unincorporated partnerships that have not made a request to be treated as individual taxable persons, the FTA requires that the authorized partner make the declaration on behalf of the partnership. This eases compliance complexity by placing the responsibility in the hands of one representative, rather than requiring all partners to submit separately.

Filing of Corporate Tax Return for Tax Groups

Where two or more companies are contained in a tax group, the law treats them as a single taxable person. In such cases:

  • Where there is a parent company, the parent company is required to file the tax return.
  • The parent consolidates all taxable income, losses, and liabilities of the group members into a single return.

Additional Information Requirements

In addition to the documents required for corporate tax registration in UAE, the FTA can request additional records to corroborate. They can include:

  • Agreements and contracts that form the basis for taxable income or deductions.
  • Cross-border transaction information.
  • Transfer pricing documentation, if necessary.
  • Documentation of foreign tax credits that have been claimed.

Businesses must keep proper records for at least seven years.

Penalties for Non-Compliance

Failure to comply with the requirement for filing corporate tax returns can lead to heavy penalties and fines. Some of the most prevalent reasons for non-compliance are:

  • Missing the nine-month filing deadline.
  • Incorrect reporting of taxable income.
  • Failure to report group transactions or related-party transactions.
  • Incomplete submission of supporting documentation.

Comparison of Corporate Tax Filing Requirements in UAE

Entity Type Filing Requirement Responsible Person Notes
Regular Companies (LLCs, PSCs, etc.) Full corporate tax return filing within 9 months of the tax period end. The company’s authorized signatory or management. Must provide all supporting financial statements, TRN, and taxable income details.
Exempt Persons May only need to file a declaration (if requested by FTA). Entity’s authorized representative. Examples: government entities, public benefit organizations, pension funds.
Unincorporated Partnerships Authorized partner files a declaration on behalf of all partners. Authorized partner (appointed by the partnership). Treated differently unless registered as a separate taxable person.
Tax Groups Single consolidated corporate tax return covering all group members. Parent company of the group. The parent company is legally responsible for calculating taxable income and filing returns.

Seek the Expert Services of Top Tax Consultants in the UAE

To seamlessly meet corporate tax requirements and ensure compliance with the corporate tax law, businesses are advised to seek the expert services of premier Tax Consultants in the UAE. Thus, contact us today, and we shall be glad to assist you.

FAQs

What is the return period of UAE corporate tax?


It must be submitted within nine months from the end of the financial year, except as otherwise determined by the Federal Tax Authority (FTA).

What is the UAE corporate tax return forms to submit?


Businesses need their trade license, Tax Registration Number (TRN), accounts, data on taxable profits, tax loss reliefs, foreign tax credits, and other supportive information dictated by the FTA.

Are exempt persons required to file a corporation tax return?


Exempt persons do not typically file a full return, but may be requested by the FTA to submit a declaration in support of their exempt status.

Who is required to file a tax return for a Tax Group in the UAE?


Parent company of group is to file corporate tax return on behalf of members of group.

What happens if a company fails to file its corporate tax return on time?


Late filing can attract very high amounts of fines, penalties, and FTA compliance issues which can even affect the tax status of the company.