UAE Corporate Tax Return Deadline extended to 31st December 2024
The Federal Tax Authority (FTA) has issued Decision No. 7 of 2024, extending the deadline for UAE businesses to file corporate tax returns and settle the tax payable. Companies incorporated in the UAE in June 2023 and having Tax Periods ending on or before February 29, 2024 are now required to file corporate tax returns before 31st December 2024.
The previous deadline for companies licensed in June 2023 was 30th September 2024. The extension of the corporate tax return deadline offers a huge relief for the companies as they get more time to prepare. Corporate tax consultants can help UAE businesses to file tax returns within the deadline.
This blog sheds light on the deadline extension and other critical aspects of the UAE corporate tax return filing. Let us dive into the details:
Companies Eligible for Deadline Extension
The deadline extension for corporate tax return filing and settlement of payable tax applies to companies meeting the following conditions:
- Taxable persons incorporated, established or recognized on or after 1stJune 2023
- Taxable persons whose Tax Period ended on or prior to 29th February 2024
What is a Corporate Tax Return?
The UAE corporate tax law defines a corporate tax return as the “information filed with the FTA for Corporate Tax purposes in the form and manner as prescribed by the FTA, including any schedule or attachment thereto, and any amendment thereof.”
Is Corporate Tax Return Filing mandatory in the UAE?
Taxable persons are required to pay corporate tax and file the corporate tax return within 9 months from the end of the relevant Tax Period. If you are confused about the UAE corporate tax return filing and payment, corporate tax consultants can help you.
Penalties for Missing the Corporate Tax Return Deadline
Businesses that fail to file the tax return or pay the tax payable within the deadline are liable to hefty penalties to the UAE FTA. The applicable penalties are:
- AED 500 for each month of delay, or part thereof, for the first 12 months
- AED 1,000 for each month of delay, or part thereof, from the thirteenth month onwards
Who can File the Corporate Tax Returns?
In the UAE, the responsibility of filing corporate tax returns rests on the taxable person. However, the other persons who have the right to file the returns on behalf of the taxable person can also submit the returns to the FTA. These persons can be tax agents or legal representatives.
Tax Return Filing Obligations for Tax Groups
As per the Corporate Tax Law, a Tax Group is two or more Taxable Persons treated as a single Taxable Person. The following are the tax return filing obligations of a corporate tax group:
- Only a single tax return needs to be filed
- The Parent Company must file a Tax Return on behalf of the Tax Group
- Parent Company will settle the Corporate Tax Payable on behalf of the Tax Group
How to File the UAE Corporate Tax Returns?
Taxable entities can file corporate tax returns online through FTA’s EmaraTax platform. You need to log in using your EmaraTax credentials.
Information to be Included in Tax Returns
- The tax period for which the tax return is being filed
- Name, address and Tax Registration Number (TRN) of the taxable person
- Accounting method used in the financial statements of the taxpayer
- Taxable income for the tax period
- Tax loss relief claim amount
- Tax loss transferred amount
- Available tax credits claim amount
- Corporate tax payable amount for the tax period
Tax Gian can Simplify the Corporate Tax Return Filing Process
Filing your tax returns within the deadline is mandatory to avoid corporate tax penalties. The best way to avoid the penalties is to properly plan for the submission of corporate tax returns. Tax Gian, a brand of Jitendra Tax Consultants (JTC), can help you plan for corporate tax return filings.
Tax Gian, located in the UAE, is a leading corporate tax consultant and registered tax agent. We have a team of corporate tax advisers who can help you simplify the filing process. Our Corporate Tax Return Filing Services include:
- Tax Consultation and Planning
- Accurate Tax Computation
- Detailed Review of Financial Statements
- Documentation Assistance
- Timely filing of tax returns in the UAE
- Assistance in the event of FTA’s tax audits
- Dispute resolution assistance in case of penalties
