Corporate Tax Return Filing & Compliance

The submission of the annual Corporate Tax return is the culmination of a business's tax compliance cycle. In the UAE, taxpayers are required to file their return and settle any tax liability within nine months from the end of the relevant tax period. For a company with a financial year ending on December 31, 2024, the statutory deadline for filing and payment is September 30, 2025.

Key Filing Deadline

Corporate Tax returns must be filed within 9 months from the end of your financial year. Late filing attracts penalties of AED 500 per month for the first 12 months.

Understanding the Filing Deadline

The nine-month filing deadline is consistent across all businesses, but the actual date varies based on your financial year-end. Here are common examples:

Financial Year End	Filing Deadline
December 31	September 30
March 31	December 31
June 30	March 31
September 30	June 30

Strategic Filing and Tax Computation

Filing a Corporate Tax return involves more than simply reporting financial figures; it requires a precise application of the law to the business's accounting records. Taxable income must be calculated by adjusting the accounting profit for non-deductible expenses and exempt income.

Common Tax Adjustments

The following adjustments are typically required when computing taxable income:

Interest Deduction Ceiling: Interest expenses are generally capped at 30% of EBITDA. Excess interest can be carried forward indefinitely.
Entertainment Expenses: Only 50% of entertainment expenses related to business associates are deductible. Entertainment for non-employees is generally not deductible.
Exempt Income: Dividends from UAE resident companies, foreign-sourced qualifying income, and certain other income types are exempt from Corporate Tax.
Unrealized Gains/Losses: Certain gains or losses that have not been realized may need to be excluded from the tax computation.
Related Party Transactions: Transactions with related parties must be at arm's length to ensure deductibility.

The Tax Computation Process

Our team follows a systematic approach to ensure accurate tax computation:

Financial Statement Review: Analysis of your financial statements to understand accounting profit.
Adjustment Identification: Identifying all required tax adjustments based on UAE tax law.
Exempt Income Calculation: Determining exempt income and qualifying free zone income.
Loss Utilization: Applying brought-forward tax losses against current year profits.
Tax Liability Computation: Calculating final tax liability at 0% on first AED 375,000 and 9% on excess.
Return Preparation: Completing the EmaraTax return form with accurate figures and supporting schedules.

Maintaining Compliance and Avoiding Late Filing Fines

The FTA maintains a strict stance on filing deadlines. Late submission of a Corporate Tax return triggers significant penalties:

Late Filing Penalties

AED 500 per month for the first 12 months of late filing
AED 1,000 per month from the 13th month onward
14% annual interest on any unpaid tax liability, calculated monthly

Additionally, any unpaid tax liability attracts a 14% annual interest rate, calculated monthly from the original due date. To ensure a smooth filing process, businesses are encouraged to utilize FTA-approved accounting software that can generate the required financial reports and schedules accurately.

Required Documentation for Filing

When filing your Corporate Tax return, you should have the following documentation ready:

Audited or reviewed financial statements for the tax period
Trial balance and general ledger
Schedules of tax adjustments
Details of exempt income and deductions claimed
Supporting documents for related party transactions
Free zone income qualification analysis (if applicable)
Tax loss carryforward calculations
Proof of tax payments (advance tax, if applicable)

Filing FAQ: Ensuring Accuracy on EmaraTax

Do I need audited financial statements for filing?

While not all businesses are mandated to have audited financials for general licensing, the Corporate Tax Law and subsequent decisions may require certain categories of taxable persons (such as those with turnover exceeding AED 50 million or QFZPs) to maintain audited statements for tax purposes. Generally, reliable financial statements prepared according to acceptable accounting standards are required.

What if I discover an error after filing?

If a taxpayer discovers an error in a filed return, they must submit a Voluntary Disclosure (VD) if the error results in a tax difference exceeding AED 10,000. For smaller errors, corrections can often be made in the subsequent tax return. It's always advisable to consult a tax advisor before submitting any voluntary disclosure.

What documents should I keep to support my filing?

Taxpayers must retain all records that support the information in their tax return for seven years. This includes financial statements, trial balances, general ledgers, and supporting schedules for tax adjustments. Proper record-keeping is essential for FTA audits.

How do I determine my taxable income?

Taxable income is derived from the net profit or loss as per the financial statements, adjusted for certain items specified under the Corporate Tax Law. These adjustments include exempt income (such as dividends from local companies), deductions for interest and entertainment expenses, and the utilization of brought-forward tax losses.

Can I file my return if I have a tax loss?

Yes, you must still file your Corporate Tax return even if you have a tax loss for the year. The loss can be carried forward indefinitely to offset future taxable income. Filing is mandatory regardless of whether you have a tax liability or not.

What is the difference between accounting profit and taxable income?

Accounting profit is calculated based on accounting standards (IFRS), while taxable income is calculated based on tax laws. Key differences include non-deductible expenses (entertainment), exempt income (dividends), tax depreciation rates, and timing differences in recognizing income and expenses.

Free Zone Considerations for Filing

For Qualifying Free Zone Persons (QFZP), additional complexity arises in the filing process:

Qualifying Income Analysis: Proper segregation of qualifying vs non-qualifying income is essential.
De Minimis Calculation: Tracking whether non-qualifying income exceeds the de minimis threshold.
Economic Substance: Maintaining records demonstrating adequate economic substance in the free zone.
Transitional Rules: Applying relevant transitional rules for the first tax period.

Why Choose Apex FinConsultants for Tax Filing?

Accurate tax computation following UAE tax laws
Proper identification of all tax adjustments
QFZP status analysis and documentation
Timely filing to avoid penalties
Voluntary disclosure assistance if errors are found
Record-keeping guidance for FTA audit readiness
Support with FTA queries and audits

Need Help With Corporate Tax Filing?

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Related Services

Corporate Tax Registration - Get your TRN and register for corporate tax
Corporate Tax Penalty Waiver - Relief from late registration penalties
Bookkeeping & Accounting - Maintain accurate records for tax filing