As the first corporate tax filing deadlines draw near for many UAE businesses, ensuring timely corporate tax registration and filing is crucial for compliance with the Federal Tax Authority (FTA). With corporate tax now in effect, understanding the specific requirements for both registration and tax filing will help businesses avoid hefty penalties and meet their obligations within the prescribed timelines.
UAE Corporate Tax Registration Deadlines
All taxable persons in the UAE must register for corporate tax with the FTA by the applicable deadlines. Failing to register by these dates results in a hefty penalty of AED 10,000. Below are the corporate tax registration deadlines based on different types of entities:
For Resident Juridical Persons:
- Established before March 1, 2024: The registration deadline is tied to the month of license issuance.
- January or February: Register by 31 May 2024
- March or April: Register by 30 June 2024
- May: Register by 31 July 2024
- June: Register by 31 August 2024
- July: Register by 30 September 2024
- August or September: Register by 31 October 2024
- October or November: Register by 30 November 2024
- December: Register by 31 December 2024
New juridical persons established after March 1, 2024, must register within three months from the date of establishment.
For Non-Resident Juridical Persons:
- Juridical persons with a permanent establishment before March 1, 2024, must submit their registration within 9 month from the date of starting the permanent establishment.
- If the permanent establishment is set up on or after March 1, 2024, registration must occur within six months.
For Resident Natural Persons:
- Individuals earning more than AED 1 million annually must register by 31 March of the following year. For example, if turnover exceeds AED 1 million in 2024, the deadline is 31 March 2025.
Non-Resident Natural Persons:
- Non-resident individuals conducting business activities through a permanent establishment in the UAE must register within three months of meeting the corporate tax requirements, such as surpassing AED 1 million in turnover.
Details from: The Timeline for Registration of Taxable Persons for Corporate Tax Purposes
Exemptions from Corporate Tax Registration
Some individuals and businesses are not required to register for corporate tax. These include:
- Income derived from wages, personal investments, or renting personal property.
- Sole establishments with a turnover of less than AED 1 million in a year.
UAE Corporate Tax Filing Deadlines
The UAE corporate tax system requires businesses to submit their tax returns by specific deadlines based on their incorporation date and the financial year. Key corporate tax filing deadlines include:
- The first tax period. This is usually the company’s first financial year and can be between 6 to 18 months long, depending on when your company was established. After this, each tax period will be 12 months long.
- Key deadlines you need to know for filing your tax returns:
- For companies incorporated before 1 June 2023, example: your first tax return is due by 30 September 2025, if financial year financial year ends on 31 December 2023.
- For companies incorporated on or after 1 June 2023, your first tax return is due within 9 months after the end of your first financial year. For example, if your first financial year ends on 31 December 2023, your tax return is due by 30 September 2024.
Below are sample tax filing timelines for different incorporation dates:
| Date of Incorporation | First Financial Year | First Tax Period | Due Date to File Tax Return |
| Before 1 June 2023 | 1 May 2023 to 31 Dec 2023 | 1 Jan 2024 to 31 Dec 2024 | 30 Sep 2025 |
| On or after 1 June 2023 | 15 June 2023 to 31 Dec 2023 | 15 June 2023 to 31 Dec 2023 | 30 Sep 2024 |
| 1 Aug 2023 | 1 Aug 2023 to 31 Dec 2024 | 1 Aug 2023 to 31 Dec 2024 | 30 Sep 2025 |
Update: The FTA has postponed the Corporate Tax return deadline for companies established after 1 June 2023 to 31 December 2024 for tax periods ending on or before 29 February 2024.
Required Information and Documents for Corporate Tax Filing
To complete a corporate tax return, businesses must prepare key information such as the Tax Registration Number (TRN) and the relevant tax period, along with details of income, taxable income, and the total tax amount due. These elements form the foundation for an accurate tax filing process and ensure compliance with UAE corporate tax regulations.
Essential documents for corporate tax filing include Income Tax Calculation derived from financial statements, deduction receipts for business expenses, and financial statements like the income statement, balance sheet, and cash flow statement, which are vital for assessing the company’s financial health. Companies engaged in cross-border transactions will need transfer pricing documentation, while those eligible for foreign tax credits must provide foreign tax receipts and returns. Lastly, market valuation of financial assets and liabilities is necessary to accurately assess tax obligations.
In addition to the above:
- Audited Financial Statements: For larger companies, audited financial statements are often required to ensure compliance and accuracy in reporting.
- Trade License: A valid and updated trade license must be included, reflecting the company’s authorized business activities.
- Owner Identification: Copies of the passports and Emirates IDs of the business owners, managers, and authorized signatories are required for identification purposes.
- Memorandum of Association (MOA): Companies may need to provide their MOA and other legal documents, such as share certificates or Power of Attorney.
- EmaraTax Profile Setup: Companies must ensure they have an active account on the EmaraTax portal, which facilitates communication with the FTA and the submission of tax returns.
Additionally, companies must maintain comprehensive financial records for a minimum of seven years as required by law, in case of an audit or review by the FTA. For businesses operating in free zones, ensuring compliance with the conditions for the 0% tax rate on qualifying income is critical to maintaining this exemption.
Finally, businesses must adhere to transfer pricing rules, ensuring that transactions between related entities are documented in line with OECD standards and reflect arm’s-length pricing. Accurate transfer pricing documentation is essential to avoid potential disputes with tax authorities.
Important Considerations for Corporate Tax Filing
Businesses incorporated in June 2023 must adhere to the following:
- Late submission penalties: AED 500 per month for the first 12 months and AED 1,000 per month thereafter.
- Failure to settle taxes: A monthly penalty of 14% per annum on unpaid taxes from the payment due date.
The filing of corporate tax returns will be done through the Emaratax portal. Companies with revenues exceeding AED 50 million or those qualifying as free zone persons must provide audited financial statements.
Even entities planning to deregister or liquidate in 2024 are required to comply with corporate tax regulations.
Corporate Tax Return Submission Steps
- Collect and organize all relevant financial statements.
- Complete the tax forms issued by the Federal Tax Authority (FTA).
- Double-check that all details are accurate and compliant with UAE corporate tax regulations.
- Ensure the tax return is filed before the deadline to avoid penalties.
- Settle any outstanding tax amounts within the time specified by the FTA.
Post Corporate Tax Filing Actions
Once filed, businesses should keep copies of their tax returns and all supporting documentation. In case of FTA inquiries, companies must be ready to provide further information. Additionally, the data from the current tax return should be used to plan future tax strategies and ensure ongoing compliance.
Staying informed about UAE corporate tax filing and registration is essential for businesses to avoid penalties and meet compliance obligations. By adhering to the specified deadlines and gathering the necessary documents, businesses can ensure a smooth and accurate corporate tax filing process.
