The Federal Tax Authority (FTA) has announced that businesses must complete Corporate Tax registration within 90 days from the Date of Incorporation / MOA.
Corporate Tax in UAE requires companies to register and submit their corporate tax returns. Once registered for corporate tax, the company will be required to file within 9 months of the end of their financial period. For example, if a company's financial year was closing on 31 December 2023, then the corporate tax return should be filed within 30 September 2024. Filing within the right time is important because failure can lead to penalties, fines, interest payments due, and even potential audits. The corporate tax return form needs to be filed with all the necessary details that need to be perfectly accurate, including the company information of the business, financial statements, tax calculations, taxable income, and deductions.
This guide will lead you through the corporate tax return filing form process, including all the essential requirements, and procedures, give you the complete details for filling out the form, and some hints on how to fill it out accurately.
Importance of Corporate Tax Filing in UAE
Filing corporate tax returns is important for the following reasons:
- Legal Compliance: Business Enterprises should comply with the Federal Tax Authority FTA enacted tax laws to avoid fines, penalties, or legal action.
- Financial Transparency: Proper filing ensures that the accounts report proper income and expenses with proper taxes owed, thereby rendering the true picture to stakeholders, investors, or even regulatory bodies.
- Benefits in Tax Planning: The filing enables companies to realize actual tax liabilities that can be realized with various forms of deduction or credits that reduce their overall tax burden.
- Better access to business opportunities in the wake of tax compliance will be followed by a better level of credibility and reputation toward increased financing and partnerships.
Due Dates of Corporate Tax Filing
1. Corporate Tax Return Period
- The corporate tax return period for businesses in the UAE is as illustrated below:
- Filing Period 01/06/2023 to 31/12/2023
2. Due Dates
- Corporate Tax Return Due Date: The date for filing the corporate tax return is 31/12/2024.
- Corporate Tax Year End Date: The corporate tax year end date is described as 31/12/2023.
Business has to meet these deadlines so that there are no fines related to late submissions regarding UAE corporate tax regulation.
General Information
- Corporate Tax Return Year-End
- Election Options for Realisation Basis and Transitional Rules
- Filing Entity Details
1.Business Structure
2. Emirates ID
3. Shareholder Information
Taxable Person Information
- Name of Taxable Person: [Insert Company Name]
- Tax Registration Number (TRN): [Insert TRN]
- Filing Period: 01/06/2023 - 31/12/2023
- Corporate Tax Year End: 31/12/2023
- Corporate Tax Return Due Date: 31/12/2024
Financial Information
A. Statement of Profit or Loss
- Operating Revenue
- Operating Expenses
a. Salaries
b. Depreciation
c. Interest
3. Net Profit or Loss
B. Statement of Other Comprehensive Income
- Foreign Exchange Gains/Losses
- Income/Losses That May Be Reclassified
C. Statement of Financial Position
1. Assets
- Current Asset
- Non-current Assets
2. Liabilities
3. Shareholder Equity
Reliefs
A. Transfers within a Qualifying Group
1. Adjustment due to clawback of relief
2. Receipt of Assets or Liabilities
3. Total Amount Adjustments
a. Excluded unrealized Gains
b. Excluded unrealized Losses
c. Gains not previously recognized
d. Losses not previously recognized
e. Other adjustments increasing Taxable Income
f. Other adjustments decreasing Taxable Income
B. Business Restructuring Relief
1. Adjustment due to clawback of relief
2. Receipt of Business or independent part of Business
3. Total Amount Adjustments
a. Excluded unrealized Gains
b. Excluded unrealized Losses
c. Gains not previously recognized
d. Losses not previously recognized
e. Other adjustments increasing Taxable Income
f. Other adjustments decreasing Taxable Income
1. Reliefs
Transfers within a Qualifying Group
1. Does the Taxable Person need to make any adjustments in the current Tax Period due to the clawback of the relief for transfers within a Qualifying Group?
Yes / No
2. Has the Taxable Person received any Assets or Liabilities from a member of its Qualifying Group and the Transferor has elected for the relief for transfers within a Qualifying Group in the current Tax Period?
Yes / No
| Description | Total Amount (AED) |
|---|---|
| Excluded unrealized Gains in respect of an Asset or Liability | 0 |
| Excluded unrealized Losses in respect of an Asset or Liability | 0 |
| Gains not previously recognized due to relief | 0 |
| Losses not previously recognized due to relief | 0 |
| Other adjustments increasing Taxable Income | 0 |
| Other adjustments decreasing Taxable Income | 0 |
Business Restructuring Relief
1. Does the Taxable Person need to make any adjustments in the current Tax Period due to the clawback of Business Restructuring Relief?
Yes / No
2. Has the Taxable Person received a Business or an independent part of a Business during the Tax Period and the Transferor has elected for Business Restructuring Relief?
Yes / No
| Description | Total Amount (AED) |
|---|---|
| Excluded unrealized Gains in respect of Assets or Liabilities | 0 |
| Excluded unrealized Losses in respect of Assets or Liabilities | 0 |
| Gains not previously recognized due to relief | 0 |
| Losses not previously recognized due to relief | 0 |
| Other adjustments increasing Taxable Income | 0 |
| Other adjustments decreasing Taxable Income | 0 |
2. Adjustments for Non-Deductible Expenditure
| Description | Total Amount (AED) |
|---|---|
| Non-deductible Entertainment expenditure | 0 |
| Non-deductible Pension contributions | 0 |
| Charitable donations made to non-qualifying entities | 0 |
| Dividends or profit distributions paid | 0 |
| Expenses not wholly incurred for business purposes | 0 |
| Other non-deductible expenditure |
3. Tax Liability and Tax Credits
Taxable Income
- Taxable Income / Tax Loss: [Insert Amount] AED
Tax Calculations and Tax Credits
| Description | Amount (AED) |
|---|---|
| Taxable Income after adjustments | [Insert Amount] AED |
| Corporate Tax Liability | [Insert Amount] AED |
| Corporate Tax payable | [Insert Amount] AED |
Adjustments for Non-Deductible Expenditure
- Non-deductible Entertainment Expenditure
- Non-deductible Pension Contributions
- Charitable Donations to Non-qualifying Entities
- Expenditure Incurred in Deriving Exempt Income
- Dividends or Profit Distributions Paid
- Expenses Not Wholly Incurred for Business Purposes
- Other Non-deductible Expenditure
Tax Liability and Tax Credits
Taxable Income
- Taxable Income / Tax Loss: [Insert Amount] AED
Tax Calculation and Tax Credits
- Taxable Income after adjustments: [Insert Amount] AED
- Corporate Tax Liability: [Insert Amount] AED
- Corporate Tax Payable: [Insert Amount] AED
Audit and Capital Distribution
- Whether Financial Statements Have Been Audited
- Capital Distribution Schedule
Submission and Filing
- Corporate Tax Return Due Date and Filing Process
Additional Attachments
- Financial Statements
- Local File
- Master File
- Confirmation of Ownership and Rights Related to Qualifying Intellectual Property
- Record of Qualifying Expenditures and Overall Expenditures Incurred
- Documentation Supporting Market Value Assessments
Conclusion
Filing your Corporate Tax Return is a critical process in maintaining tax compliance at the local level and ensures that your business runs successfully under legal compliance. An accurate review of all the reliefs, adjustments, and taxable income, helps in reducing one's tax liability while being compliant with them.
To assist you in preparing and filing your Corporate Tax Return, Reyson Badger is here to provide you with the most meticulous assistance. This tax consultancy firm is an expert in accomplishing the entire process of corporate tax filing. It is a firm specializing in doing corporate tax filing, tax planning, and ensuring compliance with tax laws. Providing a fiscal filing with the support of professionals and knowledge would undoubtedly be correct and accordingly according to the timely conditions to avoid penalties and maximize reliefs available. Let Reyson Badger take care of the corporate tax so you can focus on building your business.
