Understanding Tax Return Filing in the UAE
Businesses operating in the United Arab Emirates (UAE) are obliged by the Federal Tax Authority (FTA), which governs the tax laws, to file tax returns based on the timelines set by the authority. This legislation applies to businesses in the UAE based on criteria prescribed by the FTA for each type of tax. Non-compliance with the tax regulations can result in penalties and fines.
In general, the tax return filing is the official tax report that must be submitted by a registered business before the deadline for the FTA. It is required of the taxable person to complete the process regularly for the tax period within the timeline provided by the FTA.
With the tax (VAT) and corporate tax in place in the UAE, it has become increasingly important that businesses file their tax returns on time and accurately. Complying with the tax laws is not only a requirement by law but also an essential task for preserving the name and financial stability of your business in the UAE landscape.
Gatestone Group’s reliable corporate tax services in the UAE ensure the two crucial aspects here, i.e., being timely and accurate. Leaving the tax affairs to experts like Gatestone Group gives you the freedom to focus on what matters most: your business growth. Maximise savings and drive efficiency through our dedicated tax planning consultancy.
Corporate tax return filing regulation in the UAE
The UAE corporate tax rate is 9% for taxable income over AED 375,000 and 0% for taxable income up to AED 375,000 for financial accounting periods starting in June 2023. Big international firms are subject to a different rate of taxation if they meet the criteria for “Pillar Two” of the Organisation for Economic Co-operation and Development’s (OECD) Base Erosion and Profit Shifting initiative.
For a specific tax period, the taxable person files the corporate tax return, which includes details on the Corporate Tax liability and payment. The Federal Tax Authority (FTA) must receive the tax return within the deadline, as per the Corporate Tax Law. Partner with us and gain a competitive edge—our corporate tax services in the UAE can be your secret weapon.
Is it mandatory in the UAE to file corporate tax returns?
Yes, filing corporate tax returns is a legal requirement in the UAE. According to UAE tax regulations, the FTA mandates that businesses operating in the country file tax reports and pay taxes on their taxable income. However, enterprises with incomes under AED 375,000 will only be subject to a 0% tax.
Both domestic and foreign businesses doing business in the UAE are subject to the tax rules, which carry penalties and fines for non-compliance.
Important Corporate Tax Filing Dates in the UAE
For companies with fiscal years concluding on March 31, June 30, or December 31, below are the UAE Corporate Tax filing deadlines:
- Financial year-end is March 31. The first tax period will be April 1, 2024, to March 31, 2025.
- Financial Year: June 30. The first tax period will be July 1, 2023, to June 30, 2024.
- Financial Year-End: December 31. The first tax period will be January 1, 2024, to December 31, 2024.
Process for Corporate Tax Return Filing in the UAE
Step 1: Fill out the form, submit it to the Federal Tax Authority (FTA), and receive a tax registration number.
Step 2: Keep accurate financial records and tax-related paperwork in compliance with UAE tax regulations.
Step 3: Review the guidelines on applicable tax exemptions and deductions, determine your taxable income, and prepare your tax return.
Step 4: Submit the tax return to the FTA before the deadline.
Step 5: The payment of the tax liability must be completed before the due date, as per the tax return filed.
Step 6: FTA may require further information and documentation to confirm the accuracy of the filed tax return.
Gatestone Group’s corporate tax services in the UAE offer companies a competitive advantage in the dynamic tax market.
VAT Return Filing Regulation in the UAE
The taxable person is required to file the VAT return on a regular basis in accordance with their tax period. The VAT Return Filing Form contains details of taxes, including zero-rated and exempt. It also includes details required for input tax that can be deducted to arrive at the output tax that is due. Improve your company’s VAT compliance plan with our expert tax services, which provide careful VAT filing assistance intended for companies doing business in the UAE.
VAT was mandated in the UAE on January 1, 2018, at a rate of 5%. The 5% VAT that is levied on various goods and services must be filed and remitted by any qualified business operating in the UAE. Businesses remit VAT to the UAE government after collecting it from customers through the sale of goods and services, with VAT included in the final price. Businesses must comply with all applicable VAT laws and regulations to avoid fines and file a VAT return accurately. Gatestone Group VAT filing assistance will make the process hassle-free with the streamlined procedures and the tax filing services in the UAE provided by the Gatestone Group tax experts.
Important VAT filing dates in the UAE
When are businesses required to file VAT returns?
Taxable businesses are required to regularly file VAT returns with FTA, typically doing so within 28 days following the conclusion of the “tax period” that is specified for each kind of business. A “tax period” is a defined time frame for which the amount of tax that is due must be calculated and paid. The standard tax period is:
- For businesses with an annual turnover of less than AED 150 million, the standard tax period is quarterly.
- For businesses with an annual turnover of AED 150 million or more, it is monthly.
A separate tax period may be assigned by the FTA to a particular category of businesses. As per the provisions of Cabinet Resolution No. 40 of 2017 on Administrative Penalties for Violations of Tax Laws in the UAE, the violator will be subject to fines if they fail to file a tax return within the designated time frame.
All businesses are required to submit a tax return form as a requirement from the authority. All the tax-related data for the entity or individual during the tax period is summarised in tax return forms. We offer seamless VAT filing assistance tailored to your business needs.
Correctly File a VAT Return
- Ensure that all necessary information is provided
- Complete all required fields
- All amounts must be entered in UAE dirhams (AED) to two decimal places
- Ensure that all information is accurately stated
- Prevent inaccurate or incomplete records
The importance of timely and accurate VAT filing
- Helps avoid penalties
- Reimburses input tax
- Provides financial control for financial management and decision-making
- Reimburses tax on the import of goods through the reverse charge mechanism
- Lowers or eliminates the risk of mistakes in VAT filing
- Boosts the reputation of the company in the marketplace and fosters trust
Gatestone Group's Tax Filing Services
Gatestone Group tax experts bring decades of experience to the table, ensuring our clients’ unique needs for tax return filing are catered to with detail and full business tax compliance.
Customised options for our diverse clients
Since no two businesses are the same, we provide solutions that are tailored to the unique needs and challenges of our wide clientele.
Ensuring adherence to tax laws
Reduce the risk of non-compliance by providing tax filing services and complying with the most recent regulations on tax and tax return filing.
Mitigating risks
Our experts ensure that companies minimise risks and stay clear of mistakes and oversights resulting in legal issues.
Accurate and timely tax preparation
Optimise tax positions and realise potential savings by offering strategic tax planning consultancy and insights to provide accurate and timely tax preparation.
Streamline Your Tax Filing with Gatestone Group
Work with Gatestone Group tax experts and make your business tax-compliant in the UAE. We guarantee the timely and accurate submission of papers, risk mitigation, and maximisation of applicable exemptions for all taxes, including Corporate Tax and Value Added Tax (VAT). Navigate taxation confidently with our tailored consultancy for optimal financial structures.
At Gatestone Group, we go beyond traditional tax services, offering a suite of corporate tax services in the UAE to empower your business, minimise liabilities, and maximise profitability. Contact us to file your tax returns before the next deadline approaches.
FAQs
The specific taxes depend on your business activities. Common taxes include Corporate Income Tax, VAT (Value Added Tax), and excise tax.
Yes, our services cover a range of tax return filings, including VAT, Corporate Tax, and any other applicable taxes, ensuring comprehensive business tax compliance.
Required documents vary but may include financial statements, invoices, receipts, and other financial records. Our tax experts will guide you through the specific documentation needed.
Non-compliance with tax filing in the UAE can result in financial penalties and legal consequences. Our services are designed to ensure your company meets all tax filing deadlines and requirements.
It’s advisable to start the tax filing process well in advance of the deadline to allow for thorough preparation and review. Gatestone Group experts can guide you on the optimal timeline based on your needs and business goals.
Yes, all businesses operating in the UAE are required to file tax returns. According to UAE tax regulations, FTA mandates that businesses operating in the country file tax reports and pay taxes on their taxable income if they exceed the threshold of AED 375,000.
Regardless of the turnover, all UAE-based businesses must file a corporate tax return.
Yes, the UAE Corporate Tax return is imposed on all companies, including free zone companies, in the UAE.
The companies in the 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.
The UAE Corporate Tax is charged at a rate of 0% if the taxable income is less than the threshold of AED 375,000 and 9% if the taxable income goes beyond the threshold of AED 375,000.
As an example, the Corporate Tax liability of a UAE company with taxable income of AED 1,000,000 will be calculated as follows:
- Taxable income of AED 375,000 subject to CT at 0%: AED 375,000 x 0% = AED 0
- Taxable income exceeding AED 375,000 is subject to CT at 9%. (AED 1,000,000 – AED 375,000) = AED 625,000 x 9% = AED 56,250
The UAE Corporate Tax liability for the tax period will be AED 0 + AED 56,250 = AED 56,250.