Filing and Paying Your Corporate Tax Return in the UAE

As a business operating in the UAE, understanding how to file and pay your corporate tax is crucial to staying compliant and avoiding penalties. Here’s a step-by-step guide:

Determine Your Taxable Income

Before filing, calculate your taxable income for the relevant financial year. The UAE Corporate Tax applies to the net profits of your business, taking into account allowable deductions, exemptions, and any applicable free zone incentives.

Register for Corporate Tax

If your business meets the UAE corporate tax threshold, you must register with the Federal Tax Authority (FTA). Registration is typically required within 4 months of the start of your accounting period. You can register online through the FTA portal.

Filing Your Corporate Tax Return

Corporate tax returns are submitted electronically via the FTA’s e-services portal. The process involves:

• Logging into your FTA account.

• Filling out the corporate tax return form with accurate financial details.

• Attaching any required supporting documents, such as audited financial statements if applicable.

Deadline: Corporate tax returns must generally be filed within 9 months from the end of the financial year. For example, if your financial year ends on 31 December, the tax return is due by 30 September of the following year.

Paying Corporate Tax

Once the tax return is submitted, the FTA calculates the payable tax based on the declared profits. You can pay your corporate tax electronically via the FTA portal using bank transfer, credit card, or other approved methods.

Key points to remember:

• Payments must be made on or before the filing deadline to avoid penalties.

• Businesses in free zones may have specific exemptions or reduced tax rates, but they still must file returns to claim these benefits.

Keeping Records

Maintain proper financial records and supporting documentation for at least 5 years as required by UAE law. This ensures you are prepared for any audits or queries from the FTA.

Penalties for Late Filing or Payment

Failure to file or pay on time can result in penalties, which may include fines, interest on unpaid tax, or legal action. It is essential to meet all deadlines and ensure accurate reporting.