UAE Corporate Tax Filing is a declaration that taxpayers must submit to the FTA to declare their income and expenses for the financial year and calculate their tax liability. The UAE Ministry of Finance has issued Ministerial Decision No. Law No. 118 dated 11 May 2023, which regulates the reporting and payment of corporate tax. The decision covers the following. Steps and requirements for submitting corporate tax returns online via the FTA website, including required documents such as financial statements and supporting documents. The nature and duration of demanding the payment of tax owed by companies or the refund of overpaid tax, and the consequences of late payment or non-payment of tax. Conditions and requirements for post-tax changes to corporate income tax returns, including penalties and interest resulting from providing incorrect or incomplete information. 

Electronic submission via electronic website 

• Returns must be submitted electronically from the FTA electronic service center within four months of the end of the financial year. 
• The return must contain the following information: 
• Taxpayer—name, address, company tax registration number and fiscal year. 
• Income from all sources, such as debt, interest, dividends (including business activities), and other income. 
• Deductible expenses such as wages, rent, discounts, interest and other business-related expenses from taxpayers to corporate income taxes. 
• Determine net income or net income after deducting expenses. 
• Taxpayers will be taxed for companies based on their income and business. 

• Tax is paid by the taxpayer, which is the product of income and tax rate. 
• Taxpayers pay the taxpayer’s tax, which is the amount of tax paid in advance or withheld from the ground. 
• Tax balance is the difference between the tax paid and the tax paid. 

Representations should be observed through helping documentation including monetary statements, invoices, receipts and contracts to confirm the accuracy and completeness of the data supplied. FTA may additionally assess the request for extra records or explanation from the taxpayer. Taxpayers are obliged to pay the amount of corporate tax that is not paid within the period specified in the FTA. Taxpayers are obliged to pay the amount of corporate tax that is not paid within the period specified in the FTA. 

How to ensure accuracy and compliance when filing UAE tax returns? 

Some mistakes to avoid when filing business tax returns in the UAE are listed below: 

Late submission 

The report must not be submitted within four months of the end of the financial year, consequences, fines and penalties. 

Failure to collect information 

The record needs to be supported by way of appropriate and accurate information; as an instance, monetary statements, invoices, receipts and contracts have to be retained for five years after the end of the monetary year. 

Incorrect calculation of income and expenses 

Income from all sources, including business, dividends, interest, interest, and other investments, must be reported to the taxpayer.Debt and income calculations can be made according to UAE corporate tax and International Financial Reporting Standards (IFRS). 

Tax Deductions and Deductions 

Documents should include expenses withheld for business taxes such as wages, rent, deductions, interest, and other business-related expenses. The return must include all available tax credits for foreign taxes paid or withheld at the source. Deductions and tax credits must be claimed in accordance with UAE tax laws and double tax treaties. 

Error in tax rate claim 

The correct tax rate was applied to the taxpayer’s income or income when filing the return. The possible increase in the standard tax rate for large companies in most countries under Pillar 2 is 9%. The tax rate will be in accordance with UAE tax laws and other regulations. 

Can you submit an amended form under UAE business tax? 

Yes, you can submit an amended form under UAE Employee Tax if you find any errors or omissions in the original return. You must submit the revised form within 30 days from the date you discovered the error or after the deadline set by FTA, whichever is earlier. You may also have to pay additional tax or claim a refund from the arrangement. Depending on the nature and extent of the error or omission, FTA may accept or reject the revised declaration. 

Choosing a tax advisor in the UAE 

Filing a UAE business tax return is an important responsibility for all taxpayers in the UAE. The declaration must be sent electronically via the tax office’s e-service within the specified period (i.e. four months). The return must include the taxpayer’s income and expenses from all sources, income or income, corporate tax amount, corporate income tax, business taxes paid, and business taxes. The declaration must be supported by relevant documentation and comply with UAE tax laws and regulations. Taxpayers are obliged to pay the amount of corporate tax that is not paid within the period specified in the FTA.  

Therefore, businesses are advised to seek professional services from corporate tax consultant in UAE i.e ebs chartered accountants to effectively comply with the requested documents and meet all corporate tax-related requirements. Please contact us today; We will be happy to assist you. 

FAQS 

What does UAE corporate tax filing involve? 

UAE corporate tax filing involves reporting income, expenses, and deductions to ensure compliance with tax regulations in the country. 

What are the deadlines for UAE corporate tax filing? 

The deadline for UAE corporate tax filing is typically within 120 days from the company’s financial year-end. Extension requests may be possible under certain circumstances. 

Are there any tax incentives available for companies in the UAE? 

Yes, the UAE offers various tax incentives to attract businesses, including exemptions for certain industries or zones, reduced tax rates, and incentives for economic diversification initiatives.