Learn about UAE corporate tax return filing requirements, deadlines, step-by-step process, and penalties for non-compliance. Discover exemptions, reliefs, and compliance tips to safeguard your business in 2025.
With the UAE continuing towards the application of its Corporate Tax regime, companies need to remain abreast of the obligatory filing of corporate tax returns. The Federal Tax Authority (FTA) requires all taxable entities of the UAE to file corporate tax returns within a certain time frame, whether they are mainland entities, free zone companies, or foreign branches.
Comprehending the deadlines for UAE Corporate Tax Return filing, the procedure, and potential penalties is fundamental to ensuring continuity of compliance as well as avoiding legal and fiscal risks.
Let’s examine the corporate tax filing obligations in the UAE and how your company can remain compliant.
Who Needs to File a Corporate Tax Return in the UAE?
All taxable persons operating in the UAE are required to file a corporate tax return, including:
- UAE mainland companies
- Free zone entities (both Qualifying and Non-Qualifying)
- Foreign companies with a permanent establishment in the UAE
- Individuals conducting business or commercial activities in UAE under a trade license
The only exemptions are natural persons earning income from personal investments, real estate revenues not related to business, and employment income. These categories do not fall under the scope of corporate tax.
Corporate Tax Return Filing Deadlines in the UAE
The corporate tax return deadline is 9 months after the end of the relevant financial year. For example:
- If your financial year ends on 31 December 2024, your tax return is due by 30 September 2025.
- If your financial year ends on 31 March 2025, your tax return must be filed by 31 December 2025.
Important: Corporate tax registration must be done before return filing. The Federal Tax Authority has also set staggered corporate tax registration deadlines based on license issuance dates, with new companies required to complete the registration within 90 days of incorporation.
Step-by-Step Process for Filing Corporate Tax Return
Here’s a simplified breakdown of the UAE Corporate Tax return filing process:
- Register for Corporate Tax with the FTA via the EmaraTax portal.
- Maintain proper accounting records in line with IFRS or IFRS for SMEs.
- Calculate taxable income, applying exemptions or reliefs (such as Small Business Relief if eligible).
- Prepare financial statements and ensure audit compliance if required.
- File the corporate tax return through the FTA portal within the 9-month deadline.
- Pay any due tax liability by the same filing deadline.
Penalties for Late Corporate Tax Return Filing
Non-compliance with UAE Corporate Tax filing requirements may result in administrative penalties, including:
- Failure to file corporate tax return on time: AED 500 per month for the first 12 months; AED 1,000 per month thereafter.
- Failure to pay due tax: 14% per annum on unpaid tax, calculated daily from the due date.
- Additional penalties may apply for inaccurate declarations or failure to keep records.
Reliefs and Exemptions Available
Several corporate tax reliefs can help reduce your tax burden, including:
- Small Business Relief (for revenue under AED 3 million)
- Participation Exemption
- Free Zone Corporate Tax Exemption (for Qualifying Free Zone Persons)
- Group Relief and Transfer of Tax Losses
These must be elected during the tax return filing process, so businesses must plan in advance.
Tips to Stay Compliant
- Register for corporate tax on time as per FTA regulations.
- Partner with BMS Auditing to ensure accurate filings.
- File your corporate tax return early to avoid late filing penalties.
- Stay updated on FTA notifications and guidance on EmaraTax.
- Consult with our experts on eligibility for exemptions or applicable tax reliefs.
How BMS Auditing Can Help
BMS Auditing is home to the top tax advisors in the region, and our team is ever-present to ensure your complete compliance with corporate tax procedures. From corporate tax registration to filing your return, claiming exemptions, and preparing financial statements, we offer end-to-end support tailored to your business structure.
Call us today and enjoy unrivaled tax support!
