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Companies operating in the United Arab Emirates are legally required to file corporate tax filings; noncompliance can result in penalties and fines. Following the announcement of the UAE’s corporation tax law, businesses are getting ready to submit their corporate tax returns to the Federal Tax Authority (FTA) by the deadline.
The UAE Ministry of Finance first announced the introduction of corporate tax in January 2022, stating that it would be implemented by June 2023 or January 2024. With a headline rate of 9%, the Corporate Tax Law will take effect on June 1, 2023. A 0% rate applies to any taxable profits under AED 375,000 annually. Best practices for international taxation are incorporated into the regime.
Businesses can consult with corporate tax experts in the United Arab Emirates to determine whether they are exempt from the corporation tax structure. In the UAE, the following individuals are not subject to corporate taxation:
Here are some simple steps on how you can get your corporate tax return filed –
Step 1: Get a Tax Registration Number (TRN)
To file corporate taxes in the United Arab Emirates, one must first get a Tax Registration Number (TRN). Every company in the UAE is given a TRN, which is a special identifying number. Through the internet portal of the Federal Tax Authority (FTA), businesses can apply for a TRN. Companies must submit their trade licence number, legal entity name, and contact data to apply for a TRN.
Step 2: Maintaining Precise Documents
A business must maintain precise records of all financial transactions after obtaining a TRN. This involves keeping track of your assets, expenses, and income. Businesses must keep these records on file for at least five years and make them accessible to tax officials for inspection.
Step 3: Tax Return Preparation
Furthermore, preparing the tax return is mandatory for those subject to taxes. Businesses must ensure they have all the records and data to prepare their tax returns properly. Businesses can file their tax returns using a form the FTA offers on its web portal.
Step 4: Send Your Tax Return
Companies must file their tax returns to the FTA after preparing them. The FTA portal allows for the online submission of the tax return. To avoid penalties, businesses must ensure their tax returns are submitted by the deadline.
Corporate tax law in the United Arab Emirates states that a company established there is considered a resident. Under UAE corporate tax law, a foreign firm effectively managed and controlled in the country shall be considered a resident.
A corporation will be viewed as effectively managed and controlled in the UAE if its directors or decision-makers make significant managerial and business decisions. You can find out if you are considered a resident or non-resident by speaking with our company’s tax advisors in Dubai.
Non-residents will be subject to corporate tax in the UAE on
The deadlines for filing for Corporate Tax in the United Arab Emirates for businesses whose fiscal years end on March 31, June 30, or December 31 are shown below –
Businesses need to be well-prepared for the new tax system because the introduction of corporation tax will alter the regulatory landscape in the United Arab Emirates. Businesses can get help using the tax assessment and advising services provided by corporate tax consultants in Dubai, such as Rewind Consultancy.
Our team of accounting experts and tax advisors in Dubai can assist businesses in ensuring tax compliance. Businesses attempting to fulfil the standards for Corporation Tax in the United Arab Emirates may find our exceptional performance record advantageous.
We have successfully helped hundreds of businesses with their excise and VAT taxes. You can use our services for the UAE Corporate Tax return and send your questions to our leading corporate tax adviser.
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