How to File Corporate Tax in the UAE
Understanding UAE Corporate Tax Requirements
Who Needs to File Corporate Tax?
Corporate tax applies to all businesses, including:
- Juridical persons operating in the UAE
- Natural persons conducting business or professional activities exceeding AED 1 million in 2024
- All freezone companies irrespective of having qualifying activity or not
Who Needs to File Corporate Tax?
- 0% for businesses with taxable income up to AED 375,000
- 9% for taxable income exceeding AED 375,000
- Special rates for certain industries as per FTA regulations
Steps to File Corporate Tax in the UAE
1. Tax Registration and TRN Acquisition
All taxable entities must register with the FTA through the EmaraTax portal to obtain a Tax Registration Number (TRN). Gateway Accounting assists businesses in seamless tax registration, ensuring compliance with FTA requirements.
2. Maintain Accurate Financial Records
Proper accounting records are essential for tax filing. Businesses should keep accurate financial statements, including:
- Income statements
- Expense records
- Tax adjustments and exemptions
- Taxable Person Details: Pre-populated information based on registration
- Elections: Business restructuring relief, small business relief, and foreign permanent establishment exemptions
- Tax Computation: Adjustments based on accounting income, taxable income, and applicable deductionsSupporting documents for deductions and credits
3. Preparing the Corporate Tax Return
Tax returns must be filed electronically through the EmaraTax system. The tax return includes:
Key Considerations for Tax Filing
1. Tax Registration and TRN Acquisition
All taxable entities must register with the FTA through the EmaraTax portal to obtain a Tax Registration Number (TRN). Gateway Accounting assists businesses in seamless tax registration, ensuring compliance with FTA requirements.
2. Maintain Accurate Financial Records
Proper accounting records are essential for tax filing. Businesses should keep accurate financial statements, including:
- Income statements
- Expense records
- Tax adjustments and exemptions
- Supporting documents for deductions and credits
3. Preparing the Corporate Tax Return
Tax returns must be filed electronically through the EmaraTax system. The tax return includes:
- Taxable Person Details: Pre-populated information based on registration
- Elections: Business restructuring relief, small business relief, and foreign permanent establishment exemptions
- Tax Computation: Adjustments based on accounting income, taxable income, and applicable deductions
A corporate tax return consists of several sections, including:
- Taxable Income Computation – Adjustments to net profit
- Tax Credits and Reliefs – Foreign tax credits, group tax reliefs
- Schedules for Specific Adjustments – Transactions with related parties, transfer pricing, exempt income, and deferred gains/losses
Key Considerations for Tax Filing
A corporate tax return consists of several sections, including:
- Taxable Income Computation – Adjustments to net profit
- Tax Credits and Reliefs – Foreign tax credits, group tax reliefs
- Schedules for Specific Adjustments – Transactions with related parties, transfer pricing, exempt income, and deferred gains/losses
Deadlines for Filing
- The corporate tax return must be submitted within 9 months from the end of the financial year.
- Late filing can result in penalties and fines imposed by the FTA.
Common Mistakes to Avoid
- Incorrect Taxable Income Reporting – Ensure accuracy in income statements
- Missed Deadlines – Always submit returns before the due date
- Incomplete Documentation – Maintain proper financial records for compliance
Gateway Accounting specializes in assisting businesses with corporate tax filing, ensuring compliance with UAE tax laws. By registering on time, maintaining accurate financial records, and correctly filing tax returns, businesses can avoid penalties and optimize their tax obligations. For expert tax consultation and streamlined filing services, contact Gateway Accounting today.
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