Corporate Tax Filing Readiness – 10 Questions to Review

Overview

As the tax filing deadline is approaching for most UAE businesses, it is time to review your corporate tax filing readiness. In this blog, we provide a checklist in the form of 10 questions to review whether everything is on track.

What is Corporate Tax Filing?

It is the process of submitting a corporate tax return to the Federal Tax Authority (FTA) within the specified deadline. The process is online through the FTA’s online portal.

The important question here is, when is the deadline? The corporate tax law specifies the deadline as nine months from the end of the relevant tax period. Therefore, if a business follows the normal calendar year-end (31^st December) as their financial year-end, the filing deadline will be nine months from this date, which will be 30^th September of the following year. Thus, for entities with the financial year-end of 31^st December, 2025, the tax filing deadline will be 30^th September 2026.

Note that the deadline to settle the tax liability is the same: nine months from the end of the relevant tax period.

Testing Corporate Tax Readiness – 10 Questions for Entities to Review

The filing process is a one-off task each year; however, preparation can be ongoing and requires careful planning and a systematic approach. Taxable persons in the UAE can use these 10 questions to identify whether they are ready for their corporate tax filing.

1. Is your Business Required to File the Corporate Tax Return?

The first and foremost question to address is to understand your entity’s corporate tax status. Depending on the nature of the business and other circumstances, such as location or place of registration, your business might have an exempt status. However, there are cases where an entity still needs to submit the corporate tax return even if there is no tax liability. Contact the tax experts to learn more and file accurately.

2. Are your Corporate Tax Registration Details Up-to-Date?

It is very important to register for corporate tax within the specified deadlines; failure to do so results in a hefty penalty of AED 10,000. Furthermore, once registered, the business and other relevant details must be accurate.

3. Have You Posted All the Relevant Transactions into Your Accounting System?

Many entities don’t follow the real-time bookkeeping practice; instead, they put everything after the year-end. It is important to analyze if all the relevant transactions, such as revenue, expenses, purchases, etc., are entered in the books. Missing anything can directly impact tax compliance.

4. Have You Prepared Your Financial Statements as per IFRS?

In the UAE, entities must prepare their financial statements as per the International Financial Reporting Standards (IFRS). Timely bookkeeping and accounting reconciliations will result in the timely preparation of financial statements.

5. Are You Aware of Tax Incentives Available to Your Business?

As a global business hub, the UAE offers massive incentives to businesses operating in the region. However, it is important to understand tax incentives that are applicable to your business. Therefore, it is often useful to consult a tax expert, such as CZTA, to learn about tax exemptions and other incentives.

6. Do You Know Tax Adjustments and Deductions Correctly?

Accounting income is usually not the same as taxable income for most businesses. There are different rules for some tax deductions that contradict accounting standards. Therefore, entities must apply tax deductions correctly and comply with the tax laws.

7. Are Relevant Documents Readily Available?

The supporting documents should accompany the tax return that enable the tax authority to ascertain the tax liability themselves. Furthermore, firms must make arrangements to maintain the documents for a specified period of time in case of a tax audit or any other purpose.

8. Have You Reviewed Related-Party Transactions and Documentation?

If an entity deals with related-party transactions, there are additional documentation and reporting requirements.

9. Have You Confirmed the Corporate Tax Filing Deadline Relevant to Your Business?

The corporate tax filing deadline is nine months from the end of the relevant tax period. If your business has a recent financial year-end on 31^st December, 2025, the deadline is 30^th September, 2026.

10. Have You Reviewed All the Calculations, Documents, Disclosures and Elections Before Submission?

Firms must carefully review the tax return and relevant documentation before submission to avoid any distressing circumstances later.

10 Questions, One Solution – Creative Zone Tax & Accounting (CZTA)

From bookkeeping to corporate tax filing, CZTA provides all solutions under one roof. As an experienced tax expert and consultant in the UAE region, we provide ultimate services to our clients, including but not limited to accounting, tax preparation, and VAT. If you are unsure about any of the questions above, let us know; our team will be happy to assist you. Furthermore, with our services, you can freely focus on your business and leave the rest to us- comply and enjoy. Contact us today.

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