In 2023, the United Arab Emirates (UAE) introduced a federal corporate tax system, marking a significant shift in its tax landscape. As we move into 2025, it’s crucial for businesses and individuals operating in the UAE to understand the corporate tax return filing deadlines to ensure compliance and avoid penalties.
What is Corporate Tax in the UAE?
Corporate tax is a tax that businesses pay on the money they earn as profit. In the UAE, this rule comes from Federal Decree-Law No. 47 of 2022.
When to File the Tax Return
Businesses in the UAE must file their tax return within nine months of the end of their financial year. They will have to pay a fine if not filed on time.
How to File a Corporate Tax Return in the UAE
Filing a tax return means telling the government how much profit your business made and how much tax you must pay. Here’s a simple way to do it:
1. Register for Tax
- First, make sure your business is registered with the Federal Tax Authority (FTA).
- You must have a Tax Registration Number (TRN) to file your tax return.
- You can register online on the FTA website if you don’t have one.
2. Get All the Needed Papers
Before filing your tax return, collect all important papers like:
- Business registration papers
- Financial reports
- Tax-related records
Make sure these papers are correct and for the right period.
3. Fill in the Tax Return
Use the FTA’s tax return form or trusted software to fill in your details.
You’ll need to:
- Show how much profit your business made
- Add any deductions or exemptions (like expenses or payments to related companies)
Attach proof for anything you claim.
4. Send the Tax Return
Make sure you submit it before the deadline to avoid fines.
5. Confirmation and Payment
- After you submit it, the FTA will send you a confirmation.
- The FTA will tell you how and when to pay if you need to pay tax.
6. Keep Your Documents
- After you file your tax return, you must keep all the papers you used for at least 7 years.
- The FTA may ask to see them later, so it’s important to keep everything safe, clear, and organised.
Penalties for Late Filing
Fines are imposed for
- Not registering or late registering for corporate tax
- Not filing or late filing of tax return
- Giving wrong or incomplete information
These fines can cost your business money, so following the rules and filing on time is important.
Running a business in Dubai? JAKS is here to make things easier. We’re a trusted consulting firm that helps with tax registration, so you know the real value of your company. We also handle your bookkeeping, VAT filing, payroll, and monthly financial reports. That means less stress for you and more time to focus on your business.
At JAKS, we keep things simple, clear, and reliable. Do you have questions? Call us at +971 503372712 or email [email protected]—we’re ready to help!
