Important Update from the UAE Federal Tax Authority on Corporate Tax Returns
The UAE Federal Tax Authority (FTA) has issued a crucial reminder for all corporate taxable entities, including those that are exempt but required to register. It’s essential for these businesses to submit their tax returns or annual declarations within nine months following the conclusion of their tax periods.
Filing Deadlines for Exempt Persons
For exempt entities, the deadline for filing is also set at nine months after the end of their financial year. This timeline is critical for maintaining compliance with UAE federal tax regulations.
Legal Obligations for Corporate Tax Filings
The FTA has made it clear that all corporate taxable persons, irrespective of their income levels, are mandated to file their tax returns in accordance with the UAE’s federal tax laws. This requirement underscores the importance of timely and accurate reporting.
Encouragement to File Early
Businesses are strongly encouraged to file their tax returns as early as possible. Waiting until the last minute can lead to unnecessary delays and potential penalties. By filing early, companies can avoid the stress of approaching deadlines and ensure that their submissions are processed smoothly.
Importance of Timely Payments
The FTA also highlighted the necessity of settling Corporate Tax payments well in advance of the deadline. Late or last-minute electronic transfers may not be processed immediately by banks, which could result in overdue payment penalties. To avoid these issues, businesses should plan their payments accordingly.
Utilizing the EmaraTax Digital Platform
Companies are advised to verify their tax periods based on their financial year and check the deadlines for both filing and settling their tax liabilities. The EmaraTax digital platform offers updated information and 24/7 access, making it a valuable resource for businesses navigating their tax obligations.
For instance, companies whose financial year concluded on December 31, 2024, can already begin filing their tax returns through EmaraTax. It’s advisable to make payments through this platform ahead of the September 2025 deadline to allow ample time for processing.
Filing and Payment Procedures
It’s important to note that filing and payment do not need to occur simultaneously. Taxable persons have the option to consult registered Corporate Tax agents, whose details can be found on the FTA’s official website, for additional guidance.
Required Information for Tax Returns
Under the Federal Decree-Law on the Taxation of Corporations and Businesses, corporate taxable persons must adhere to specific forms and procedures when filing their returns. The required information includes:
- The tax period covered by the return
- The name, address, and Tax Registration Number (TRN) of the taxable person
- The date of filing
- The accounting principles applied in the financial statements
- The taxable income for the period
- The amount of tax loss relief claimed and any losses carried forward
- Available tax credits
- The Corporate Tax payable for the period
Ensuring Compliance with Corporate Tax Law
The FTA urges companies to thoroughly review the Corporate Tax Law, along with Cabinet and ministerial decisions, as well as the latest guides and public clarifications. These resources are readily available on the Authority’s official website, ensuring that businesses have the necessary information to remain compliant.
By staying informed and proactive, companies can navigate their tax responsibilities effectively and avoid any potential pitfalls associated with late filings or payments.
