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Corporate Tax

Corporate Tax Filing Rejection in UAE – Causes and Solutions

Filing corporate tax in the UAE requires effective compliance with the provisions of the UAE Corporate Tax Law to prevent penalties, audits, and unnecessary delays. Many businesses encounter filing rejections due to avoidable errors, underscoring the importance of professional guidance. Engaging reputable tax consultants in the UAE, such as FAR Consulting Middle East, ensures accurate and compliant submissions that fully align with the Federal Tax Authority’s (FTA) requirements from the onset.

Reasons for Corporate Tax Filing Rejections in the UAE

A corporate tax return is typically rejected when the submission fails to meet the requirements of the FTA. Some of the most common reasons for corporate tax return rejection include:

  1. Incomplete or Incorrect Information

Missing or inaccurate information is the most prevalent cause for corporate tax filing rejection in the UAE. This can occur in the form of misstated business license numbers, invalid TRNs (Tax Registration Numbers), incorrect selection of financial periods, or mismatched shareholder information. FTA requires this information to verify your company identity, and therefore, even minor inaccuracies can result in rejection.

Solution: Always double-check company details before submission. Top Tax Consultants in UAE ensure your documentation is reviewed with professional accuracy.

  1. Mistakes in Financial Statements

Under Corporate Tax UAE, your tax return must be accompanied by financial statements prepared according to the internationally accepted accounting standards (such as IFRS). Inconsistencies in your profit and loss accounts, balance sheets, or supporting schedules can lead the FTA to reject the return.

Solution: Have your financial statements audited or prepared professionally by firms such as FAR Consulting Middle East to ensure compliance and accuracy.

  1. Missed Filing Deadlines

The UAE corporate tax regime sets clear timelines for submission. Any delay not only risks the rejection of a corporate tax return but may also result in penalties under the applicable tax laws. A practical solution is to track corporate tax filing deadlines as soon as the tax period notification is received. It is therefore advisable to engage the expert services of premier Tax Consultants in UAE to prepare filings well in advance and avoid last-minute complications.

  1. Unsupported Deductions or Exemptions

Claiming deductions or exemptions without proper documentation may raise concerns with the Federal Tax Authority (FTA). For instance, availing Free Zone Corporate Tax incentives requires substantiating evidence of eligibility, without which the filing is likely to be rejected. The advisable approach is to maintain comprehensive records supporting all claimed exemptions and deductions. FAR Consulting Middle East, a reputable Tax Consultant in UAE provides expert assistance in assessing eligibility and ensuring compliance with documentation requirements.

  1. Technical Defects in the Filing Process

Otherwise, tax filing errors in the UAE occur as a result of technical faults such as file format errors, upload errors, or exceeding the system size limit on the EmaraTax portal.

Solution: Train your finance team on the EmaraTax portal or delegate the task to UAE Corporate Tax Solutions experts who know the technical specifications of the system.

The Role of Corporate Tax Consultants in Avoiding Rejections

When a corporate tax filing is rejected, the FTA will specify the reason for rejection. However, correcting the matter can be time-consuming. Thus, businesses should avail the expert services of top Tax Consultants in UAE to ensure timely and accurate corporate tax filing, in compliance with the relevant corporate tax regulations. Firms such as FAR Consulting Middle East provide comprehensive services, including:

  • Reviewing company and shareholder information for accuracy
  • Ensuring financial statements comply with the UAE Corporate Tax Law
  • Filing returns within the statutory deadlines to prevent penalties
  • Advising on applicable exemptions and deductions
  • Addressing FTA queries and objections promptly

Steps to Resolve a Corporate Tax Filing Rejection

If your corporate tax return is rejected, the following process should be followed:

  1. Review the Rejection Notice – Access the EmaraTax portal to identify the exact reason provided by the FTA.
  2. Correct the Errors – Rectify incorrect data, update financial statements if required, or submit any missing documentation.
  3. Consult a Tax Specialist – Seek advice from a qualified Tax Consultant in the UAE to determine the most appropriate response to the FTA’s objections.
  4. Resubmit Within the Deadline – File the corrected return within the permitted timeframe to avoid additional penalties.
  5. Implement Preventive Measures – Use the experience to enhance future compliance processes and prevent recurring errors.

Practical Measures to Prevent Rejection

  • Maintain organized records throughout the year to avoid last-minute document collection.
  • Utilize approved accounting software to reduce calculation errors and ensure reports are in the correct format.
  • Stay informed about amendments to the UAE Corporate Tax Law, especially during its early implementation period.
  • Train finance staff to understand both the technical and legal aspects of filing.
  • Rely on professional services by engaging trusted Corporate Tax Consultants such as FAR Consulting Middle East.

Contact us today, and we shall be glad to assist you. 

5 FAQs

  1. What most often causes a corporate tax return to be rejected in the UAE?

Rejections usually happen because some information is incorrect or missing, the financials are not up to the desired standard, there is not enough evidence for deductions, the return was filed late, or a technical problem while filing online.

  1. Why was my corporate tax filing rejected?

The easiest thing to do is to log into your EmaraTax portal account. The Federal Tax Authority includes a remark in the reason for which they returned it, so you’ll be able to see exactly what needs to be amended. 

  1. What is the first thing I should do if my company tax return is rejected?

Don’t panic, read the reason for the rejection carefully, correct any mistakes, ask for any documentation that you are lacking, and resubmit as soon as possible so that you stay within the deadline.

  1. Will a rejection automatically mean having to pay penalties?

Not always. But if correcting puts you late according to your official submission date, then you could be subject to penalties on corporate tax under UAE law.

  1. Is it worth hiring a Corporate Tax Consultant?

Yes, an experienced team like FAR Consulting Middle East can complete your return correctly, submit it on time, and deal with any FTA queries so that you don’t have to suffer the hassle of rejections at all.