Filing Your Corporate Tax Return in UAE Key Guidelines

Learn how to file your corporate tax return in UAE with essential deadlines, documentation, and record-keeping requirements for compliance.

Filing a corporate tax return is one of those tasks that no business can afford to overlook. Whether you’re a multinational corporation or a local SME, understanding the requirements and deadlines can save you from potential fines and penalties. Here, we’ll break down the essentials of filing corporate tax return in UAE, maintaining financial statements, and record-keeping.

What is a Tax Return?

A tax return is a formal report filed with the tax authorities, summarizing your income, expenses, and other financial information for a specific period. In the UAE, every taxable person must file a tax return detailing their taxable income, tax credits, and any reliefs claimed. This helps to determine the amount of tax owed or the refund due for overpaid taxes.

Filing Your Tax Return

The process of filing a tax return in the UAE is governed by Federal Decree by Law No. (47) of 2022 Concerning Corporate and Business Tax. Here’s what you need to know:

1. Filing Deadline

You must file your tax return no later than nine months after the end of the relevant tax period. This timeline is strict, and failing to comply can result in penalties. The tax period is usually aligned with your fiscal year, which could either follow the Gregorian calendar year or any other 12-month period your company uses for its financial statements.

2. Required Information

Your tax return should include the following key details:

• Tax Period: The specific period for which you’re filing the return.
• Taxpayer Information: Your name, address, and Tax Registration Number (TRN).
• Submission Date: The date on which the tax return is submitted.
• Accounting Basis: The accounting method used in your financial statements, whether cash or accrual basis.
• Taxable Income: The total taxable income for the period.
• Tax Loss Relief: Any tax loss relief claimed or transferred during the period.
• Tax Credits: Details of any available tax credits.
• Corporate Tax Payable: The total amount of corporate tax payable for the period.

3. Additional Documentation

Beyond the standard tax return, the UAE Federal Tax Authority (FTA) may require additional information, such as financial statements and records supporting your taxable income. These documents must be prepared using the UAE’s accepted accounting standards.

The Backbone of Your Tax Return

Your financial statements play a crucial role in determining your taxable income. As outlined in Article 54, the FTA may request these statements, which must accurately reflect your company’s financial position for the relevant tax period. Depending on your business size and structure, you may also be required to maintain audited or certified financial statements.

Also, note that failing to maintain proper transfer pricing documentation can lead to severe penalties, so it’s advisable to consult with a corporate law firm in Dubai that can help you in tax law.

Record Keeping 

The law mandates that businesses maintain all relevant records and documents for at least seven years following the end of the tax period to which they relate. This includes:

• Financial Records: Invoices, receipts, and other documents supporting your tax return.
• Corporate Documents: Records of transactions with related parties, tax loss relief, and any other relevant financial activities.

For exempt persons, such as those operating in Free Zones, record-keeping is equally important to substantiate their exempt status. Ensuring all your documents are in order will help you avoid any complications during tax audits.

If you’re unsure about any aspect of the Decree, the law allows you to apply for clarification from the FTA. This could include seeking an advance pricing agreement for specific transactions. Which provides certainty on how these transactions will be treated for tax purposes.

Conclusion

Filing corporate tax returns in UAE requires careful attention to detail and a clear understanding of the law. Every step must be handled with precision, from preparing accurate financial statements to maintaining essential records. If you’re unsure about any aspect of your corporate tax obligations. Consulting with law consultants in Dubai can provide the expert guidance needed to ensure compliance.

For businesses seeking personalized advice, reaching out to the best legal consultant can make all the difference in navigating the complexities of corporate tax in the UAE. For companies facing these complexities, reach out to top law firms in Dubai. Such as BSB Legal Consultants, who can provide invaluable assistance in ensuring compliance.

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