Corporate Tax Return Filing in the UAE

A UAE Corporate Tax return must be filed with the Federal Tax Authority within nine months of the end of each tax period, and any tax due must be paid by the same date. Dawn Consultancy prepares the tax computation from your financial statements, completes the return and its schedules on EmaraTax, reconciles it to the audited accounts, and files it with the supporting disclosures. For companies we audit, the return is prepared from the audited figures as part of the same engagement.

What the return involves

The return is more than a single tax figure. It requires:

• Financial statements for the tax period, audited where required (revenue above AED 50 million, or Qualifying Free Zone Person status)
• A tax computation starting from accounting profit and adjusting for exempt income (such as qualifying dividends and participation exemption gains), non-deductible expenses, entertainment expenditure (50% deductible), fines, donations to non-approved bodies and interest above the general interest limitation
• Elections: Small Business Relief, realisation basis, transitional relief for pre-tax-period assets, tax group or foreign permanent establishment exemption
• Related-party and connected-person disclosures, with the transfer pricing disclosure form where transactions exceed the FTA thresholds
• Free zone schedules for Qualifying Free Zone Persons showing qualifying and non-qualifying income and the de minimis calculation
• Tax loss schedules, including losses carried forward and the 75% utilisation limit

Our filing process

1. Information request. Trial balance, financial statements, fixed asset register, related-party schedule and prior-year return if any.
2. Tax computation. Adjustments identified and documented with references to the law and FTA guidance.
3. Review meeting. We walk you through the computation, the elections available and the tax payable before anything is submitted.
4. Filing. Return and schedules submitted on EmaraTax; acknowledgement and payment reference provided.
5. Payment. Payment instructions through the FTA’s channels (GIBAN, e-Dirham or card) with confirmation of settlement.
6. File. A tax file containing the computation, working papers and supporting documents, retained for the seven-year record period.

Deadlines

• Financial year ending 31 December: return and payment due 30 September of the following year
• Financial year ending 31 March: due 31 December
• Financial year ending 30 June: due 31 March of the following year
• First tax period for companies with a June 2023 to May 2024 first period: the FTA extended the first deadline to 31 December 2024 for short first periods; later periods follow the standard nine months

Penalties for late or incorrect returns

• Late filing: AED 500 per month (or part) for the first twelve months, AED 1,000 per month thereafter
• Late payment: 14% per annum, calculated monthly on the unpaid amount
• Incorrect return: fixed penalties, reduced if corrected by voluntary disclosure before the FTA raises the error
• Failure to keep records: AED 10,000 for a first offence, AED 20,000 for a repeat

Frequently asked questions

Do I have to file if my taxable income is below AED 375,000?
Yes. The 0% band is applied within the return; the return itself is mandatory for every registered taxable person.

Can I file using management accounts rather than audited accounts?
If your revenue is below AED 50 million and you are not claiming Qualifying Free Zone Person status, audited financial statements are not mandatory, but the accounts must still be prepared under IFRS or IFRS for SMEs and be capable of supporting the return on an FTA audit.

What if I discover an error after filing?
A voluntary disclosure should be filed within 20 business days of discovering the error. Penalties are lower for voluntary disclosures than for errors found by the FTA.

Can losses from the first tax period be carried forward?
Yes, provided the return for that period was filed. Losses arising before the first tax period cannot be carried forward.

Get your return filed

Email your trial balance or financial statements to info@dawnconsultancy.com, call +971 55 441 1036, or request a call back. See also Corporate Tax registration, free zone Corporate Tax and transfer pricing.