The UAE’s Federal Tax Authority (FTA) has released comprehensive guidance on Corporate Tax returns, which is crucial for businesses preparing to file their UAE Corporate Tax return in 2025 and beyond. This guide clarifies filing deadlines, contents of the return, schedules, reporting obligations, and what taxpayers need to do to stay compliant.
This blog covers everything you need to know about Corporate Tax returns in the UAE, including filing timelines, transfer pricing rules, connected persons disclosure, and important practical steps. For expert help with your Corporate Tax returns and full tax advisory services, contact My Taxman at +971-543223140.
- UAE Corporate Tax applies at 9% on taxable income exceeding AED 375,000.
- Filing Corporate Tax returns is compulsory for all taxable persons, including companies, certain natural persons, and free zone businesses.
- The FTA requires Corporate Tax returns to include detailed schedules based on the taxpayer’s profile and elections.
- Failure to file correct Corporate Tax returns on time may attract penalties and disrupt business operations.
Understanding the New Corporate Tax Return System
Modular Return Structure
- The Corporate Tax return on the EmaraTax portal includes up to 20 schedules.
- Only relevant schedules appear, depending on the taxpayer’s registration details, elections, and activities.
- This modular approach helps tailor the return to each business’s specifics.
Transfer Pricing & Related Party Reporting
- Disclosure is mandatory when aggregate related-party transactions exceed AED 40 million.
- Separate disclosure is required for any transaction category exceeding AED 4 million.
- Connected persons’ benefits must be reported if aggregate benefits exceed AED 500,000.
Who Must File a UAE Corporate Tax Return?
- All resident juridical persons (companies in the UAE).
- Non-residents with a permanent establishment in the UAE.
- Free zone entities, with elections determining their specific treatment.
- Natural persons conducting business with a turnover exceeding AED 1 million (excluding wages, investments, and real estate income).
Components of the UAE Corporate Tax Return
The return comprises the following key sections and schedules:
- Taxable Person Information: Identification and registration details.
- Elections: Choices related to free zone status, tax accounting method, etc.
- Accounting Schedule: Net profit/loss based on financial statements.
- Accounting Adjustments & Exempt Income: Adjustments per tax law.
- Reliefs: Tax credits and exemptions applied.
- Transfer Pricing Disclosure: Related-party transactions exceeding thresholds.
- Connected Persons Schedule: Disclose benefits to connected persons.
- Other schedules related to group relief, foreign tax credits, and exempt income.
Key Deadlines for Corporate Tax Returns in the UAE
Tax Period Type | Tax Period Dates | Filing Deadline for Corporate Tax returns |
Calendar Year Entities | 1 Jan 2024 – 31 Dec 2024 | 30 September 2025 |
April–March Financial Year Entities | 1 Apr 2024 – 31 Mar 2025 | 31 December 2025 |
Early Filing Cohorts | 1 June 2023 – 31 March 2024 | 31 December 2024 |
How to Prepare Your Corporate Tax Return
Accurate Registration and Profile Setup
- Verify TRN, entity type, free zone elections, and group elections on EmaraTax.
- Satisfy yourself that the initial data entry is an accurate representation of your business structure.
Maintain Detailed Financial Records
- Prepare financial accounts in compliance with International Financial Reporting Standards (IFRS).
- Watch related-party transactions and benefits of connected persons closely.
Calculate Taxable Income Correctly
- Adjust net accounting profit/loss for tax-specific additions and deductions.
- Include all reliefs and exemptions allowed under the UAE Corporate Tax law.
Collect and Organize Supporting Documents
- Audited financial statements.
- Transfer pricing documentation.
- Schedules detailing related-party transactions and connected persons.
- Any additional records substantiating elections and income computations.
Submit on EmaraTax Portal
- Use the UAE government’s EmaraTax online platform for submission.
- Review all details carefully before filing.
- Pay any due tax liability within the 9-month deadline.
Important Filing Tips and Compliance Reminders
- Even if no tax is due (e.g., qualifying free zone persons), filing the return is mandatory.
- Penalties apply for late filing, late payment, or incorrect returns.
- Elections made (e.g., opting out of 0% free zone benefit) carry forward automatically into future returns.
- Maintain records for 7 years after the end of the tax period for audit purposes.
Conclusion: Get Your UAE Corporate Tax Return Right with My Taxman
Because of the complexity of the UAE Corporate Tax regime and its timely deadlines, it is a necessity to prepare early and file correctly. My Taxman provides professional assistance in tax registration, return preparation, transfer pricing, connected persons analysis, and total compliance management.
Call +971-543223140 today to streamline your Corporate Tax returns and ensure you meet all FTA requirements smoothly and on time.
Frequently Asked Questions
Q1: What is a Corporate Tax return?
A corporate tax return is an annual report filed with the FTA containing income, adjustments, schedules, and tax calculations for the tax period.
Q2: What is the deadline to file UAE Corporate Tax returns?
Tax returns must be filed within 9 months from the end of the tax period, e.g., by 30 September 2025 for calendar year 2024.
Q3: Who must file the Corporate Tax return?
Resident companies, non-residents with permanent establishments, natural persons with a business turnover exceeding AED 1 million, and free zone entities are required to file.
Q4: What triggers transfer pricing disclosures?
Related-party transactions totaling over AED 40 million, or individual categories over AED 4 million, require disclosures.
Q5: Are connected persons reported separately as of 30 September?
Yes, benefits exceeding AED 500,000 for connected persons must be reported.
