Corporate Income Tax Filing

The UAE government and tax authority have introduced a corporate tax to boost economic growth and ensure transparency in the tax system. This amendment in the UAE tax system has a significant impact on the nation’s reputation as a business-friendly destination with 0% corporate tax. With the introduction of the corporate tax, it has become essential for business owners to understand the whole concept of corporate income tax filing in the UAE.

Businesses operating in diverse sectors across the Emirates that qualify under the criteria for taxable income must register for a UAE corporate tax to maintain compliance with new corporate tax laws. Corporate income tax filing in the Emirates involves several steps, and for each step, different requirements are needed to ensure proper tax filing. With the assistance of HISAB Taskmaster CAdvisors, the UAE’s leading financial advisory and consultant firm, you can stay assured of accurate and timely tax filing.

Understanding the UAE Corporate Tax System

Alternatively called corporate or corporation income tax, this tax is a direct tax imposed on the taxable income of businesses. With the introduction of this major amendment in the corporate tax system, the UAE tax ministry has focused on improving fairness and reinforcing economic growth. For accurate corporate income tax filing in Dubai, UAE businesses must understand the UAE corporate tax system. Here are the three major steps that can help businesses with this:

1. Know Your Tax Structure

The UAE is among those countries that follow a territorial tax system, which means the nation’s tax ministry only imposes tax on the taxable income earned within the country and not on the income generated from foreign resources. The fixed rates of 0% and 9% have been set by the UAE tax ministry on businesses with taxable income below or above AED 375,000, respectively.

2. Identify Applicable Businesses

From mainland to free zone companies, businesses operating in any jurisdiction within the Emirates will be subjected to this direct tax and have to ensure proper and timely corporate income tax filing to maintain legal operations. Even foreign businesses with permanent establishment or conducting businesses in the country are also affected by this amendment in the corporate tax. However, businesses operating in free zones might receive some relief if they fulfill certain eligibility criteria.

3. Prepare for Tax Filing

Collect all business financial records, including documents, receipts, invoices, etc.
After that, you need to select the tax form depending on your business structure that will be filed to the UAE tax ministry.
With the assistance of tax experts, calculate your taxable income based on collected tax records.
Identity and claim for exemptions and deductions in your taxable income, which will assist you in minimizing your tax liability.
The UAE corporate income tax filing must be done within 9 months after the end of a financial year. Businesses need to submit their tax returns on the FTA e-services platform.

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Corporate Income Tax Filing: Step-by-Step Process

Register with UAE FTA (Federal Tax Authority) - All businesses with legal trade licenses operating in the Emirates that are eligible for taxable income must register themselves with the FTA. They need to visit the EmaraTax portal, register themselves, and acquire a unique TRN number from the authority.
Maintain Accurate Records - For accurate UAE corporate income tax filing, businesses must maintain proper financial records, including their profits, sales, expenditures, and other financial transactions throughout the tax period. An experienced firm in tax compliance, like HISAB Taskmaster CAdvisors, can assist you with this crucial step.
Calculate Taxable Income - The next step is to calculate the taxable income, for which businesses first need to evaluate the overall profits or losses of a specific financial year. After that, they need to deduct exemptions and deductions to calculate the final taxable income and ensure compliance with FTA tax standards.
Complete the Tax Form - Fill out the right tax form based on your business structure, which will be provided by the FTA and include columns for information like income, expenses, exemptions, and other details.
Submit Online - After the end of a specific financial year, all the eligible businesses for UAE corporate tax must submit their tax filing to the FTA through its e-service portal.

Common Mistakes to Avoid When Filing UAE Corporate Income Tax

File Tax Before the Deadline : The most common mistake that must be avoided is to file for the tax after the deadline, which can result in legal issues and hefty penalties. For timely submissions, a tax calendar or reminder must be set.
Improper Record Keeping : Proper or accurate record keeping of financial records is a must for corporate income tax filing. Additionally, stay updated with any change or amendment to the corporate tax laws.
Overlooking Deductions & Exemptions : The UAE tax ministry has set some allowable deductions and exemptions that must be utilized by businesses to decrease their tax liability while maintaining compliance with FTA corporate tax standards.

HISAB Taskmaster CAdvisors UAE Corporate Tax Services

UAE Corporate Tax Registration : Our experienced tax experts will assist you in registering with the FTA and securing a unique TRN number for your business.
Corporate Income Tax Filing & Compliance : We will assist you in preparing and submitting accurate tax filings while ensuring compliance with UAE corporate tax laws.
UAE Corporate Tax Advisory : Our experts will assist you in planning tax strategies that can lower your tax liability. Additionally, we will provide guidance on tax exemptions and deductions.
VAT Advisory & Filing : We will handle the filing of the VAT, including registration and submission. Also, we will guide you with the right advice to maintain VAT compliance.
Bookkeeping & Accounting Services : Our quality bookkeeping and accounting services will assist you in maintaining accurate financial records for tax reporting, managing payrolls effectively, etc.

How HISAB Taskmaster CA Advisors Can Help You

With years of experience and in-depth knowledge of the UAE corporate tax system, HISAB Taskmaster CAdvisors is your right partner in navigating the complexities of corporate income tax filing.

Our corporate tax specialists with expertise in local and international tax regulations will minimize the risks of non-compliance with the FTA corporate tax standards.
Maintain legal compliance, brand reputation, and profitability with our cost-effective and quality UAE corporate tax services.
To ensure the utmost client satisfaction, our corporate tax specialists offer customized, flexible, and scalable corporate tax services and solutions.

Contact with HISAB Taskmaster CAdvisors

Partner with Dubai’s leading corporate tax consultant, HISAB Taskmaster CAdvisors, and secure quality solutions for your corporate income tax filing needs. From maintaining financial records and obtaining a TRN number to tax filing and compliance adherence, we will assist you with everything. Contact our experienced corporate tax specialists for a hassle-free corporate income tax filing in the UAE.