Corporate Tax Filing in Dubai

The Corporate Tax return must be filed within 9 months from the end of the relevant tax period. For example, if your financial year ends on December 31, 2024, your filing deadline is September 30, 2025. Late filing incurs penalties of AED 500 per month for the first 12 months, increasing to AED 1,000 per month thereafter.

Non-deductible expenses include fines and penalties (except contractual penalties), donations to non-qualifying entities, entertainment expenses exceeding 50% for employees, bribes and illegal payments, income tax paid in other jurisdictions (though tax credits may apply), and personal expenses of shareholders.

Yes. Tax losses can be carried forward indefinitely to offset up to 75% of taxable income in future tax periods. However, losses cannot be carried back to prior periods. The 75% limitation ensures that businesses always pay some tax in profitable years while still benefiting from prior losses.

CT returns must be filed within 9 months from the end of the tax period. For a standard January-December financial year, the filing deadline is September 30 of the following year. Late filing incurs penalties starting at AED 500 for the first month, increasing to AED 1,000 per month thereafter.

Yes, if they elect for Tax Grouping. Dubai companies that are at least 95% owned by the same parent can form a Tax Group and file a single consolidated CT return. However, free zone entities cannot be part of a Tax Group. Tax Grouping must be elected before the filing deadline.

Dubai businesses can deduct all legitimate business expenses incurred wholly and exclusively for business purposes. This includes salaries, rent, professional fees, marketing, and depreciation. Entertainment expenses are limited to 50%. Interest deductions may be subject to thin capitalisation rules. Our team ensures all allowable deductions are claimed.