As the new year “2025” started with positive resolutions, the goal of every business is not just achieving financial success but also being compliant. This keeps the overall business running smoothly and avoids fines and penalties. Furthermore, a compliant enterprise usually has a high reputation in the business world. In the UAE, if we talk about taxation, corporate tax is a relatively new and important subject. Therefore, there is a need for a proper understanding of business tax matters. In this blog, we are conferring a basic corporate tax compliance checklist 2025 that will give a general understanding of the subject and a basic guide for young entities.
Corporate Tax Compliance Checklist 2025 – What’s Included?
You should first understand what compliance means concerning corporate tax in the UAE. In general, a compliant business follows all the relevant laws and regulations of the jurisdiction of its operations. In terms of the UAE corporate tax, this will mainly include the corporate tax law: Federal Decree-Law No. 47 of 2022, including all the related updates, Cabinet Decisions, Ministerial Decisions, and other regulations and related laws. Please note that for the sake of this blog, we are only referring to corporate tax laws.
It is almost impossible to provide a checklist that will apply to every business; however, we try to provide some basic particulars that apply to most entities. Depending on your business and circumstances, you may have different responsibilities. The ideal way is to consult a tax expert or a firm such as Creative Zone.
Corporate Tax Compliance Checklist 2025 – General
One should keep in mind that CT compliance will enable enterprises to achieve transparency and strategic financial management. Therefore, it will enable businesses to contribute towards the UAE’s economic vision. For every business, follow the general checklist below.
- Register for Corporate Tax
Register your business with the Federal Tax Authority within the stipulated timeline. For further details, please check the FTA website for deadlines.
- Maintain Records
Businesses must keep all the financial records that support the corporate tax liability. The law mandates keeping records for at least 7 years from the end of the tax period for most businesses.
- File Corporate Tax Return
Submission of corporate tax returns within the stipulated timeline, which is nine months from the end of the tax period. The tax filing process is online through the EmaraTax portal of the FTA.
- Payment of Corporate Tax Liability
The EmaraTax portal enables the calculation of corporate tax due. Businesses must ensure timely payment of the tax liability, i.e., within 9 months from the end of the relevant tax period.
Corporate Tax Compliance Checklist 2025 – Other Matters
The above checklist provides a general understanding of what basic corporate tax compliance includes. However, an entity must adhere to or keep an eye on other matters on the checklist given below.
- Register for VAT, Excise Tax, and Related Responsibilities
If needed, a business must register for VAT with the tax authority. However, it is only mandatory if the business’s taxable supplies and imports surpass a threshold of AED 375,000. Issuance of VAT invoices, maintaining VAT records, filing VAT returns, and payment of VAT due or claim refunds are the basic VAT responsibilities. If your business produces, imports, or stores excise goods, register for excise tax. The business must maintain all the records, file excise returns, and pay the excise tax liability.
- Adhere to Related Party Transactions’ Compliance
There are instances when entities have transactions with related parties and connected parties of the business. Articles 34, 36, & 36 of the corporate tax law provide detailed information on the subject.
- Adhere to Transfer Pricing Regulations & Double Taxation Treaties
For businesses having international transactions, entities must ensure compliance with transfer pricing regulations and double taxation treaties. If applicable, entities must prepare and submit country-by-country reporting as per UAE requirements.
- Stay up-to-date with changes in tax laws.
Regularly monitor for changes and updates in laws and regulations in the UAE.
- Seek Professional Advice
It’s never too late to seek an expert’s advice. For tailor-made solutions, contact us.
Conclusion
Compliance is important for businesses to ensure smooth operations, strategic financial management, and avoidance of penalties. Following a basic checklist to comply with the tax laws is generally not recommended. However, with the help of a corporate tax compliance checklist, businesses can avoid penalties and other legal issues. Furthermore, they can also align their business practices with tax efficiency and prepare effectively for tax audits and inspections. It is worth noting that seeking professional assistance might effectively enhance a business’s overall tax compliance. Therefore, one should consider a tax consultant.
Creative Zone Tax & Accounting (CZTA)
Our team is well-equipped with the corporate tax law, its amendments, and related regulations. Your primary goal is to bring success to your business while remaining compliant with the tax laws. Focus on your business; leave the rest to us. Contact us today.
