With the introduction of corporate tax in the UAE region, a common question arises: “How to file the tax return?” The UAE government has taken measures to make the process as simple as possible. However, every taxable person must understand the process to avoid any negative outcomes, such as penalties. In this blog, we provide a simple UAE tax return guide that is useful for every business operating in the region. Before we move further, let’s first understand a tax return and why it is necessary for every business to file one.
UAE Corporate Tax Return Guide – The Basics
A tax return, also referred to as a corporate tax return or a return, is a recurring tax responsibility for most businesses operating in the UAE. It is common in most countries of the world; however, the terminology might differ, and the deadlines and rates too!
The corporate tax law defines a tax return as “Information filed with the authority for corporate tax purposes in the form and manner as prescribed by the authority, including any schedule or attachment thereto, and any amendment thereof.”
A tax return is generally a form in which details of income, expenses, and other taxation details are provided. This, in turn, will calculate the final tax liability that is due to the UAE government. Any attachments, schedules, and amendments are also submitted along with the tax return. Furthermore, any relevant information or documentation requested by the Authority is also provided with the corporate tax return.
EmaraTax – The Submission Portal
The corporate tax return must be filed online using the EmaraTax portal. The tax return comprises several parts. This is because the taxable person may have several adjustments while calculating the tax liability, for instance, reliefs and exemptions.
The taxable person only sees fields and schedules that may apply to them. Our UAE tax return guide only mentions key details briefly; for detailed information tailored to your business, contact us.
Submission Deadlines
Subject to corporate tax registration, a business must file a tax return no later than 9 months from the end of the relevant tax period. For instance, if a business has a year-end on 31st December, 2024, the submission deadline will be 30th September, 2025. Furthermore, the tax return should be in the form and manner as per the guidelines of the tax authority.
Key Steps for a Streamlined Tax Return Submission
These are various functions that every entity must follow for a smooth and compliant submission of the tax return.
1. Corporate Tax Registration
The first and foremost step is to submit the corporate tax registration application. But before that, you need to confirm two points. First, you need to verify that your business is subject to corporate tax. For instance, resident juridical persons are subject to corporate tax. Second, the registration submission should be done within the stipulated deadline. Failing to meet the registration deadline has a hefty penalty of AED 10,000.
2. Maintain Accurate Records
The calculation of taxable income is based on the accounting records. Therefore, the accuracy of accounting records will lead to the accuracy of taxable income and tax liability. The accounting records must adhere to the local UAE laws and International Financial Reporting Standards.
3. Calculate Taxable Income
One must understand that accounting income and taxable income may not be the same. To calculate taxable income, you can start from net income or loss and adjust for deductions, reliefs, and other adjustments. These adjustments are as per the tax law, and therefore, they need to update their knowledge. Therefore, it is useful to consult a tax expert, like CZTA.
4. Supporting Documents
The submission is not only dependent on filling numbers; the taxable entity must submit the relevant documents. The documents should be enough for the tax authority to calculate the tax liability on its own. These documents generally include, but are not limited to,
- Financial Statements
- Tax Depreciation Schedules
- Related Party Transactions’ details
- Taxable Income Calculations and other relevant documents
5. Complete, Submit & Pay
After double-checking all the entries, submit the completed tax return (with documents) using the EmaraTax Portal. The system automatically calculates your tax liability based on the information provided during the submission. Finally, pay and settle the corporate tax liability using supported payment methods.
6. Stay Compliant Post-Filing
The payment of tax liability is not the end of compliance responsibilities; the business must comply with tax laws on an ongoing basis. A critical area is record-keeping. As per the tax law, a business must keep relevant tax records for a minimum of seven years from the end of the relevant tax period.
Conclusion
One of the core tax responsibilities of businesses is to file a corporate tax return within the stipulated timeline. In this “UAE tax return guide 2025,” we mentioned key features of a tax return and how entities can follow a systematic process for timely submission. This, in turn, will ensure compliance. Furthermore, it is important to mention that the overall process is ongoing; it is not that you do everything right near the deadline. Ongoing and early preparation will avoid hefty penalties, manage cash flow to settle tax liability within the timeline, and unlock tax savings where possible. Resultantly, the overall tax structure will be streamlined. Thus, it is really important for businesses operating in the UAE to understand tax compliance, including tax filing.
Creative Zone Tax & Accounting (CZTA)
Our UAE tax return guide is a starter to understand what corporate tax return filing is. Practically, there is a series of responsibilities that are difficult to mention all in this blog. Therefore, it is essential to consult an expert. And here we are. Contact us today for your streamlined submission, and of course, earlier is better.
