Corporate Tax Return Filing in the UAE
Corporate tax return filing refers to the process of submitting annual tax returns for companies registered in the UAE. As the business and commercial hub of the Middle East, it is important for corporations operating in the UAE to understand what are corporate taxes and comply with corporate tax return filing requirements.
Is it Mandatory to Register for Corporate Tax in the UAE?
It is mandatory for all companies registered in the UAE to register for corporate tax in UAE. This list also includes businesses operating within a designated free zone. However, it must be noted that sole establishment businesses should cross the one million turnover threshold point within a calendar year to gain eligibility for registration. Thus, every corporate tax registrant needs to file a return annually. Additionally, please note that if the net profit exceeds AED 375,000, then, a 9 % tax will be made applicable for mainland companies and non-qualifying freezone companies.
Documents required for corporate tax registration
- Copy of Valid Trade license
- Valid Passport Copy of the owner/partners who own the license copy of valid Emirates ID of the owner/partners who own the license
- Memorandum of Association (MOA)-(not required for sole establishment)
- Contact Details of the Company( Complete Address and P.O Box.)
- Concerned Person’s Contact Details (Mobile number and Email)
Should Free Zone Entities Register for Corporate Tax and File Return?
Free zone companies in the UAE are also required to register for corporate tax and file returns annually as per their special status. Thereafter, the Corporate tax for income of qualifying freezone companies will be zero, and the corporate tax for income of non-qualifying freezone companies will be 9% for net profit over AED 375,000.
Who can be a Qualifying Freezone Person?
Maintain adequate substance in the UAE: Your business should have a significant presence in the UAE, including physical premises and employees.
Generate qualifying income: Your income should primarily come from compliant business activities conducted within the Free Zone or with international clients.
Do not elect for normal corporate tax rates: You should not choose to be taxed under the standard corporate tax rates applicable to non-Free Zone businesses.
Non-qualifying income does not exceed the de minimis threshold: Your non-qualifying income should be below 5% of total revenue or AED 5 million, whichever is lower.
Transfer pricing compliances: comply with transfer pricing requirements under the corporate tax law.
Find the Newly Updated Deadlines for Corporate Tax Registration
The deadline for corporate tax registration was announced during the final week of February 2024. According to this, the prescribed rules are applicable for businesses, starting from March 1st, 2024. Please note that the deadlines are strictly varying as per the month of issue of trade licenses. For instance, those with a trade license issued on the January-February timeline must register by May 31st, 2024. Thus, take extra care in terms of the deadlines to avoid penalty of AED 10,000
Corporate Tax Return Filing in the UAE
Corporate tax return filing refers to the process of submitting annual tax returns for companies registered in the UAE. As the business and commercial hub of the Middle East, it is important for corporations operating in the UAE to understand what are corporate taxes and comply with corporate tax return filing requirements.
What is the Deadline for Corporate Tax Return Filing in the UAE?
The standard deadline to submit corporate tax in UAE is nine months from the end of a business’s financial year. For example, if a company’s financial year ends on December 31, the deadline would be September 30 of the following year. Late submissions are subject to fines as per UAE tax laws.
How to File Corporate Tax Returns in the UAE?
Businesses can file their business tax in UAE through the Federal Tax Authority (FTA) website portal using an online form. Required documents include audited financial statements (applicable only if there is a turnover of 50 million), profit and loss report, balance sheet and other supporting tax documents
Procedure of Corporate Tax Return Filing in the UAE
The key steps to file a corporate tax return include:
- Prepare audited financial statements for the year (Compulsory only if there is a 50 million turnover)
- Calculate taxable income as per UAE Corporate Tax Laws.
- Fill FTA online corporate tax return form with income/expense details.
- Upload required supporting documents.
- Submit return and pay any outstanding tax amount before due date.
- Retain copies of the return and documents for future reference or tax audits.
Elements of Corporate Tax Return Filing Services
You can end your intense search for impeccable business tax services at Al Daqiq, as we belong to the list of top corporate tax filing services providers offering end-to-end support with the tax filing process. This includes guidance on eligibility, return preparation checks, document compilation, submission facilitation, and post-filing support in case of any queries. Our advanced services also include tax planning and compliance consulting.
Corporate Tax Return Filing Services in the UAE
For hassle-free corporate tax filing, companies can rely on specialized services from best dubai corporate tax provider like Al Daqiq Accounting and Tax Consultation (AD). As one of the top corporate tax filing services provider in the UAE, AD handles all aspects of the process from initial registration to ongoing submissions. Our qualified tax experts offer customized Solutions tailored to a business’ unique requirements. AD also provides ongoing support with transfer pricing documentation and representation during tax authority audits.