Corporate Tax Return
Corporate Tax Return
Corporate Tax filing is a mandatory process where businesses submit their tax returns to the Federal Tax Authority (FTA) or the relevant tax authority, detailing their taxable income, deductions, and tax liabilities. In the UAE, Corporate Tax was introduced at a rate of 9% for businesses with a taxable income exceeding AED 375,000. Here’s an overview of the filing process and requirements:
Key Elements of Corporate Tax Filing
Eligibility
Corporate Tax applies to:
- UAE-based businesses with taxable income above the threshold (AED 375,000).
- Free Zone entities (if conditions are met).
- Foreign companies with UAE-sourced income.
Taxable Period
Aligns with the financial year of the business. Tax returns must be filed within 9 months of the end of the financial period.
Preparation
Businesses must prepare the following:
- Financial statements.
- Adjusted taxable income based on UAE Corporate Tax laws.
- Documentation to support deductions and exemptions.
Filing Process
- Register for Corporate Tax on the FTA portal.
- Submit a Corporate Tax return (Form CT1) via the portal
- Pay the tax liability within the due date.
Penalties for Non-Compliance
Fines apply for:
- Late registration or submission.
- Incorrect filings.
Documentation Retention
Businesses are required to maintain financial records for at least 7 years for audit purposes.