Compliance Guide for Corporate Tax in UAE
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Compliance corporate tax in uae

A Complete Compliance Guide for Corporate Tax in the UAE

Businesses in the UAE are expected to belt up for Corporate Tax compliance, effective from June 2023. Companies that fall under the cognizance of Corporate Tax are urged to outset formal auditing, accounting and bookkeeping services to establish their financial credentials for tax calculation and filing tax returns. Thus, companies are highly advised to outsource approved accounting and auditing services as the primary basis of effecting Corporate Tax.

Tax Return Filing, Tax Payments, and Tax Refunds 

For each taxation period, corporations are obliged to prepare and submit one corporate tax return, together with any necessary supporting records. In the UAE companies are not required to submit a provisional corporation tax return or pay corporate income tax UAE in advance. 

Within nine months of the conclusion of the applicable Tax Period, the business will be expected to file each tax return along with any accompanying supporting schedules to the Federal Tax Authority. Within 9 months of the conclusion of the applicable Tax Period, taxpayers who wish to alleviate their corporate tax debt for that Tax Period must do so. They can also request the Federal Tax Authority for refund tax if they can ascertain that the corporate tax return can be due.  

What are the requirements for Corporate tax registration and deregistration?

All corporations that fall under the cognizance Corporate tax in the UAE are to register with the Federal Tax Authority. If an eligible entity neglects to complete voluntary corporate tax registration in the United Arab Emirates, the Federal Tax Authority has the authority to enroll the specified company. A company might cease to be liable to corporate tax in UAE framework for many reasons, such as expiration or liquidation. The company should submit an application for deregistration in such a circumstance. Within 3 months of the date of discontinuation, businesses must have to submit an application for deregistration with the Federal Tax Authority. If the relevant authority is contented that the commodity has submitted corporate tax returns and paid all of its corporate tax liabilities, it will grant the request for corporate tax deregistration. Availing the help of a corporate tax advisor is highly imperative in this instance, to ensure a seamless and efficient process of corporate tax registration and deregistration. 

Read More: Corporate Tax Compliance and Planning Services

What are corporation tax requirements regarding record keeping and financial statements?

It’s crucial to keep accurate financial records to ensure compliance with UAE Corporate Tax. The corporate tax returns must contain a detailed description of these records. Entities will also have to submit all relevant documents to Federal Tax Authority. Corporations will still be required by applicable firm rules and regulations to have their financial statements audited by qualified audit firms in UAE. To take advantage of the zero percent corporate tax rate, free zone enterprises must have their financial accounts audited. 

What does corporate tax assessment require?

The UAE’s corporate tax system is built on the self-assessment idea. It implies that companies make sure that the tax returns and affiliating records they defer to the Federal Tax Authority are correct, comprehensive, and in compliance with the corporate tax regime. Within the time range outlined in the Law of Tax Procedures, the Federal Tax Authority will examine the corporate tax returns submitted by the corporations and offer an evaluation. 

Best Corporate Tax Consultation Services 

The landmark shift from a Non-Tax environment to a Tax Regime is quite burdensome for businesses. Thus, it is highly advised to seek expert consultation for taxing and accounting services from approved Tax Consultants to ensure a seamless and efficient process of corporate tax registration and deregistration. So, contact us today for premiere Corporate Tax services. We shall be happy to assist you!

Ervee is a CPA with international experience in Tax and Accounting. He has over 12 years of experience in accounting and bookkeeping and over a year in VAT implementation, registration, and accounting in UAE. He regularly drives out inefficiencies in company operations and loves the challenge of helping clients find additional ways for an easier and improved compliance and verification of transactions. Read more