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Corporate Tax Return Filing in Dubai, UAE
Corporate Tax Return Filing Services in UAE
Corporate tax return filing in the UAE is the process of submitting a comprehensive report to the relevant tax authority. This report outlines a company’s income and expenses, shedding light on its financial activities. The Taxable Person is responsible for submitting the Corporate Tax Return, which covers essential information related to tax liability and payments. The filing of this return must occur within a specific timeframe, as dictated by the Corporate Tax Law. Additionally, if the tax authority requests any additional documents or information, it is the taxpayer’s responsibility to provide them promptly.
In the UAE, it is mandatory for all companies to file CT returns. The Federal Tax Authority (FTA) strictly requires businesses, both local and foreign, to adhere to UAE tax laws. However, companies with an annual income of less than AED 375,000 are subject to a 0% tax rate. Failure to file tax returns or pay taxes promptly can result in severe penalties and fines. It’s essential to note that all taxpayers, regardless of income level or company status, are obligated to file a Corporate Tax return.
Corporate Tax Returns for Free Zone Entities
Even Free Zone entities operating in the UAE are not exempt from Corporate Tax. All Free Zone entities, regardless of whether they qualify as Free Zone persons or not, are required to file a Corporate Tax return.
Deadline for Corporate Tax Return Filing
Companies in the UAE have a deadline of up to 9 months from the end of the relevant tax period to submit their tax return and pay Corporate Tax to the Federal Tax Authority (FTA). For example, a company with a first tax period beginning on June 1, 2023, will have a deadline of February 28, 2025, for filing and payment. This flexibility aims to ensure a smooth implementation of Corporate Tax policy in the UAE.
Filing corporate tax returns offers several benefits, including efficient cost management, better time control, the ability to consolidate group tax payments, and the opportunity to offset taxable profits against tax losses within certain companies.
Filing Frequency for Businesses
Businesses in the UAE are only required to file for corporate tax returns once per tax period. The Corporate Tax return is due nine months after the end of the Tax Period, and there is no need for advance or preliminary filings.
Elements of Corporate Tax Return Filing Services in Dubai, UAE
When filing your Corporate Tax Return, it’s essential to include information about your company’s profits and expenses. The final result of this process determines the tax amount owed to the government. Here are the key documents you’ll need when filing Corporate Tax Returns:
- Financial records
- Calculations of taxable income, showcasing changes in net results in accounting
- Records and plans related to tax depreciation
- Transfer pricing records
- Information on transactions involving relatives
- Movement of provisions
Our team of tax experts and professionals at IBR GROUP specializes in ensuring the accurate preparation of corporate tax returns. By doing so, we protect your business from the risk of audits while maximizing potential tax claims.
Process of Filing Corporate Tax Returns in UAE
The process is straightforward and can be completed online through the EmaraTax portal. The FTA currently approves the pre-registration of corporate tax for selected entities. If your business falls into this category, you can register for corporate tax on EmaraTax. If you haven’t created an account on EmaraTax yet, here’s a step-by-step guide to log in and register. It’s worth noting that EmaraTax has merged with the UAE Central Bank and UAE PASS to streamline the user experience.
STEP 1
Tax Registration
Begin by obtaining a tax registration number from the Federal Tax Authority (FTA). It includes submitting the necessary documents and information.
STEP 2
Record Keeping
Maintain meticulous records of all financial transactions and tax-related documents in accordance with UAE tax laws.
STEP 3
Preparation of Tax Return
Calculate your taxable income and prepare a comprehensive tax return based on your meticulously maintained records. Take into account any tax deductions and exemptions as per UAE tax laws.
STEP 4
Filing of Tax Return
Submit your tax return to the FTA through their online platform, e-Services, on or before the due date.
STEP 5
Payment of Tax
Ensure that you pay your tax liability as per the tax return filed on or before the due date.
STEP 6
Tax Audit
In the event of a tax audit, the FTA may request additional information or documents to verify the accuracy of the tax return filed.
CT Return Filing UAE
IBR GROUP boasts a team of highly knowledgeable and experienced Tax consultants in Dubai, UAE. Our experts are dedicated to assisting clients with top-notch Corporate Tax services in the UAE, ensuring strict compliance with the laws and regulations of the Tax Authority. We guide you through every step, from document preparation to tax liability calculation and tax compliance for Corporate Tax activities, including registration, filing returns, refunds, and more.
In conclusion, understanding the intricacies of Corporate Tax return filing in the UAE is vital for businesses to operate smoothly and avoid legal repercussions. With the assistance of professionals like IBR GROUP, navigating the UAE’s tax landscape becomes more manageable, allowing you to focus on your core business activities.