Corporate Tax Filing Q&A

Introduction

The implementation of the UAE Corporate Tax Law (Federal Decree-Law No. 47 of 2022) has created many questions for businesses as they prepare for their first corporate tax filing. To help UAE companies navigate compliance, we’ve compiled a list of common questions and answers (Q&A) about corporate tax filing with the Federal Tax Authority (FTA).

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1. Who needs to file a corporate tax return?

All taxable persons, including UAE companies, foreign entities with a permanent establishment in the UAE, and certain natural persons engaged in business activities, must file a corporate tax return.

• Exempt persons (e.g., government entities, qualifying public benefit entities) do not file unless specifically required.

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2. How often must the corporate tax return be filed?

Corporate tax returns are filed annually. Unlike VAT, there are no quarterly filings.

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3. What is the deadline for filing the return?

The return must be filed within 9 months from the end of the relevant financial year.

• Example: If a company’s financial year ends on 31 December 2024, the deadline to file is 30 September 2025.

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4. How is the corporate tax return filed?

• Returns are filed electronically via the FTA’s EmaraTax portal.

• Supporting documentation (financial statements, disclosures, TP forms if applicable) must be uploaded.

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5. What information is required in the return?

• Financial statements prepared under IFRS.

• Adjustments for non-deductible expenses and exempt income.

• Details of related-party transactions (Transfer Pricing).

• Tax loss utilization (if applicable).

• Final corporate tax payable.

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6. What are the corporate tax rates?

• 0% on taxable income up to AED 375,000.

• 9% on taxable income above AED 375,000.

• 0% on qualifying income for Qualifying Free Zone Persons (subject to strict conditions).

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7. Do Free Zone entities need to file?

Yes. All Free Zone entities must file corporate tax returns.

• If they qualify as Qualifying Free Zone Persons (QFZP), they can benefit from a 0% rate on qualifying income.

• If they do not meet conditions, they are taxed at 9%.

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8. What expenses are non-deductible?

• Fines and penalties.

• Bribes and illegal payments.

• Dividends paid.

• 50% of entertainment expenses.

• Non-business-related personal expenses.

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9. Can tax losses be carried forward?

Yes. Tax losses can be carried forward indefinitely and offset up to 75% of taxable income in future years (subject to ownership continuity conditions).

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10. What are the penalties for late filing?

• Administrative penalties apply for late registration, filing, or payment.

• Additional penalties may apply if errors or omissions are identified during an audit.

• Filing a Voluntary Disclosure before an audit may reduce penalties.

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11. What is the role of Transfer Pricing (TP) in filing?

• Related-party transactions must comply with the arm’s length principle.

• Some businesses must submit a TP Disclosure Form with the tax return.

• Local File and Master File documentation may also be required, depending on thresholds.

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12. Is an audit of financial statements mandatory?

• For most entities, yes—financial statements must be prepared under IFRS.

• For large businesses or those meeting FTA thresholds, audited financials may be required for filing.

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Conclusion

Corporate tax filing in the UAE requires careful planning, accurate financial reporting, and compliance with FTA requirements. By understanding the filing deadlines, documentation requirements, and tax law provisions, businesses can avoid penalties and ensure smooth compliance.

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✍️ Prepared by Sheikh Anwar Accounting and Auditing LLC – Registered Auditor with the Ministry of Economy (Auditor Entry No. 5817, Company Entry No. LC4695-01). We specialize in Corporate Tax, VAT, Transfer Pricing, and AML Compliance, supporting UAE businesses with accurate tax filing and advisory services.

📧 Contact us: info@sa-auditors.com

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