What is the due date for corporate tax filing in UAE?

UAE businesses must file annual corporate tax returns with the Federal Tax Authority (FTA). This process reports a company's taxable income and determines the corresponding tax owed. Timely filing ensures compliance with regulations and avoids penalties. Generally, corporate tax filing due date in UAE depends on your chosen fiscal year: September 30th of the following year for fiscal years ending between December 31st and February 28th; otherwise, the last day of the seventh month following your fiscal year-end. The due date for corporate tax registration in UAE 2024 is 30th June 2024. Ensure to register for corporate tax by the deadline, you need a penalty of 10,000 Dirhams. This article furthers information about corporate tax filing in the UAE and the filing deadline.

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What is Corporate Tax Filing in UAE?

Corporate tax filings in the UAE are the annual process businesses established within the Emirates undergo to report their financial performance and tax obligations to the Federal Tax Authority (FTA). Implemented in June 2023, the system applies to most businesses, with some exceptions. Businesses must register for Corporate Tax and submit yearly returns detailing their taxable income for the chosen fiscal year and the resulting tax liability. This filing process ensures transparency and allows the FTA to assess the appropriate corporate tax owed by each entity.

Due Date for Corporate Tax Filing in UAE

The deadline for filing your first corporate tax return hinges on your company's chosen fiscal year:

• Financial Years Ending Between December 31st and February 28th: September 30th of the following year.

• Financial Years Ending on Any Other Date: The last day of the seventh month following the fiscal year-end.

For instance, if your company's fiscal year concludes on June 30, 2024, the deadline to submit your corporate tax return would be January 31, 2025 (the last day of the seventh month after June 2024).

How to file your Corporate tax returns in UAE?

Filing your corporate tax return in the UAE might seem daunting, but with proper planning and these step-by-step instructions, you can navigate the process efficiently. Here's a breakdown:

Step 1: Gather Necessary Documents

• Financial Statements: Prepare your company's audited financial statements for the chosen fiscal year. These include the balance sheet, income statement, and cash flow statement.

• Tax Registration Certificate: Have your Corporate Tax Registration Certificate issued by the FTA readily available.

• Supporting Documents: Gather any supporting documentation for claimed deductions and exemptions, such as receipts, invoices, and depreciation schedules.

Step 2: Choose Your Filing Method

The FTA offers two primary options for filing corporate tax returns:

• Electronic Filing Portal: This is the preferred and most convenient method. Visit the FTA's official website and register for the e-Services portal. You can then access the corporate tax return form, fill it out electronically, and submit it online along with scanned copies of your supporting documents.

• Tax Advisors: Consider engaging a qualified tax advisor with expertise in UAE corporate tax regulations. They can guide you through the entire filing process, handle document preparation and submission, and ensure compliance with all requirements. Get expert help from Filings.ae to file your Corporate tax returns with all the compliance requirements.

Step 3: Complete the Corporate Tax Return Form

Whether filing electronically or with a tax advisor, ensure all sections of the corporate tax return form are completed accurately. This typically involves details like:

• Company Information: Basic company details like name, registration number, and fiscal year-end.

• Financial Performance: Income and expense figures derived from your financial statements.

• Taxable Income Calculation: Details on deductions and exemptions claimed, leading to the final taxable income amount.

• Tax Liability Calculation: Apply the relevant corporate tax rate to your taxable income to determine the total tax owed.

• Payment Information: Specify your preferred method of tax payment (online, bank transfer, etc.)

Step 4: Submit Your Return and Payment

Once you've completed the return form and gathered all supporting documents, submit them according to your chosen filing method. Ensure you make the tax payment by the due date to avoid penalties.

Step 5: Record Keeping and Retention

Maintain a proper record-keeping system for all documents related to your corporate tax filing, including the return form, supporting documentation, and payment receipts. The FTA typically requires businesses to retain these records for a minimum of five years.

Get Detailed Instructions: How to file Corporate tax returns in UAE?

Consequences for Non-Compliance of UAE Corporate tax filing

Failure to adhere to corporate tax filing deadlines and procedures in the UAE can bring about a series of negative consequences for businesses. The most immediate impact involves financial penalties. These penalties accrue daily for late filings and can be substantial depending on the delay and the company's taxable income. Additionally, interest charges may be levied on any outstanding tax obligations. Beyond financial penalties, non-compliance can trigger further scrutiny from the Federal Tax Authority (FTA) in the form of requests for additional information or even potential audits.

Learn more: UAE Corporate tax compliance

Conclusion

The due date for corporate tax returns filing in UAE depends on your company's fiscal year-end. It's either September 30th of the following year for fiscal years ending between December 31st and February 28th, or the last day of the seventh month following your fiscal year-end. Missing the deadline can result in financial penalties and additional scrutiny from the authorities.

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