In UAE, filing a corporate tax return is submitting a report outlining a company’s earnings and outlays to the appropriate tax body. The Taxable Person files the Corporate Tax Return for a given tax period with information regarding the Corporate Tax Liability and Payment. According to the Corporate Tax Law, the Tax Return must be submitted to the Federal Tax Authority (FTA) within a certain time frame.
Is it Mandatory To File Corporate Tax Returns in UAE?
Yes, it is mandatory to file corporate tax returns in the UAE. FTA requires companies operating in the UAE to file tax returns and pay taxes on their taxable income as per the UAE tax laws. However, only 0% tax will be subjected for businesses with income less than AED 375,000.
The tax laws in the UAE apply to both local and foreign companies operating in the country, and failure to file tax returns or pay taxes can result in penalties and fines.
Should UAE businesses with no income file for CT returns?
All the companies in UAE are required to file a corporate tax return, irrespective of the turnover or the financial status of the company.
Should Free Zone entities file for Corporate Tax Returns?
Corporate tax in UAE is imposed on free zone companies as well. Hence, All free Z\zone entities will be required to file a corporate tax return, even if they are Qualifying Free Zone persons or not.
How often Businesses should file for Corporate Tax Returns in UAE?
Companies in UAE will be required to file a corporate tax return only once a year as per the tax period mentioned on the corporate tax registration certificate.
Corporate Tax Return Filing Deadline
Companies in the UAE will have up to 9 months from the end of the relevant tax period to submit their corporate tax return and pay the CT to the Federal Tax Authority (FTA).
For example, a company with a financial year period of January 1, 2024 to December 31, 2024 will have a deadline up to September 30, 2025, whereas a company with a financial year period beginning on June 1, 2023 would have a deadline up to February 28, 2025.
Looking for best Corporate Tax Services in UAE?
Xact Auditing has highly knowledgeable and experienced Tax consultants in UAE in assisting clients with the best Corporate Tax services in UAE for Corporate Tax returns, ensuring staying compliant with the laws and regulations of the Tax Authority.
Our team also guides you through document preparation, calculating the tax liability, and tax compliance for Corporate Tax activities such as Registration, filing returns, refunds, etc. Contact Us.
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