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Stay Compliant With Our Expert Guidance

According to the new UAE Corporate Tax Law, every entity, whether a startup or a multinational firm, is required to file corporate tax returns. The UAE's FTA (Federal Tax Authority) mandates this process in a timely manner, and any failure can result in severe penalties and financial consequences.

To ease this hardship, we specialise in offering customised tax filing services to provide you with a smooth, simple, and stress-free tax return filing experience across the UAE.

Corporate Tax Filing - Understanding Its Importance

Corporate tax filing is a process of reporting your business's financial income, expenses, and liabilities to the FTA for a particular financial year or period. You must file returns even if you are not liable to pay tax for that year due to income thresholds.

Additionally, you must file a Corporate Tax Return even if you are a mainland firm, a free zone entity, or an individual business. 

Now, let us look at some of the key facts:

  • Effective date - June 1, 2023
  • Corporate Tax Rate - 0% on income up to AED 375k and
  • 9% on income above AED 375k
  • Filing deadline - 9 months within the end of the financial year
  • Late filing penalty - AED 10k+ monthly charges

 

What You Will Need Before Filing?

You must have clear documentation of all records, and then file the following forms:

  • Profit and loss statements
  • Taxable income calculations
  • Fixed asset and depreciation schedules
  • Transfer pricing document
  • Related party transaction details
  • Provision movement records

If you choose us as your return filing partner, you can rest assured that we will handle everything, maximising your tax efficiency and minimising audit risk.

 

Dates Not To Be Missed - Filing Deadlines

You will have a period of 9 months from the end of the financial year to file your Corporate Tax Return. To best explain in an example, it is:

  • If the financial year starts June 1, 2023 - you must file by February 28, 2025
  • Say the financial year starts Jan 1, 2024 - you must file by Sept 20, 2025
  • For late submission, you can expect a flat AED 10k fine plus a monthly penalty, which would be AED 500 to AED 1000.
  • Additionally, you may incur further penalties for submitting incorrect or incomplete returns.

 

Who All Must File For A Corporate Tax Return?

Corporate tax applies to several businesses and entities operating in the UAE. And if you fall into any of these categories, then filing is mandatory:

1. Resident Juridical Persons: Partnerships, JSCs, and LLCs based in Dubai

2. Non-resident Entities: Foreign businesses that have a permanent work visa in the UAE

3. Natural Persons: Sole proprietors and entrepreneurs who earn more than AED 1 million annually

4. Free Zone Businesses: Even if you do not fall under the tax bracket, and enjoy 0% tax rate

5. Exempt Persons: Qualifying public benefit entities, pensioners, government bodies, and investment funds if registered

Step-by-Step Process To File Corporate Tax Returns

Below is a detailed procedure on how to file your returns without any advance or preliminary payments.

  1. Register for corporate tax filing via the FTA and get your TRN (Tax Registration Number)
  2. Maintain all your records correctly as per the FTA guidelines
  3. Calculate your taxable income, along with exemptions and deductions
  4. File your returns online using the e-Service portal of FTA
  5. Pay your tax due within the deadline date specified
  6. Finally, keep all the documents safe and clear in case of FTA review

How YCA Can Be Your Return Filing Partner?

Here, our tax experts do not just file returns - but simplify the entire corporate tax process thus making us the best in the region.

  • Expert knowledge of UAE tax laws
  • End-to-end support in filing and compliance
  • Audit support and accurate documentation
  • Defining strategies for tax optimisation and planning
  • Reliable support for group filings and exempt individuals, too
  • Post-filing support and suggestions to improve business operations

Corporate Tax Filing Deadline Coming Up?

Do you wish to escape risk penalties? If so, speak to our experts, who will handle your returns accurately and on time.

File Returns Now

Queries You Might Have In Mind?

1. Who is required to file for a corporate tax return in the UAE?

All taxable entities, including mainland and free zone companies, are required to file an annual corporate tax return with the Federal Tax Authority (FTA).

2. What is the deadline for filing a corporate tax return?

Returns must be filed within 9 months of the end of the financial year. Say, your financial year ends on 31st December 2024; filing deadline is 30 September 2025.

3. Do even free zone entities file for tax return?

Yes, all free zone entities must file for return if they are exempt from tax.

4. What information should I have for filing taxes?

You must have management financial statements, details of income and expenses, transfer pricing disclosures, deduction or relief documents, and other relevant documents.

5. Is an audit mandatory to file a return?

It is not, but if you have auditors oversee your returns, then you can maintain accurate and complete financial records without errors, which, in the end, would help you with penalty-free completion.

6. What happens if I do not file on time?

The FTA (Federal Tax Authority) will impose a late filing penalty, which will include AED 500 for the first 12 months and then AED 1,000 per month thereafter. Additionally, an extra penalty will be applied for inaccurate filing.