With the introduction of corporate tax in the UAE, timely filing and strict compliance have become critical obligations for businesses. Failure to meet registration, filing, and payment deadlines can result in administrative penalties, even where no tax is ultimately payable.
This guide provides a complete corporate tax compliance checklist to help businesses meet their obligations under Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses.
Table of Contents
Who Must File Corporate Tax Returns in the UAE?
Corporate tax filing obligations apply to:
- Mainland companies
- Free zone companies (including Qualifying Free Zone Persons)
- Branches of foreign companies
- Individuals conducting business activities under a licence
Even businesses eligible for 0% corporate tax or Small Business Relief are required to register and file returns.
Corporate Tax Registration in the UAE
All taxable persons must register with the Federal Tax Authority (FTA) through the EmaraTax portal.
Registration Requirements:
- Valid trade licence
- Ownership and authorised signatory details
- Financial year information
Registration must be completed within the timelines prescribed by the FTA, regardless of whether tax is payable.
Corporate Tax Filing Deadlines
Corporate tax returns must be filed:
- Within 9 months from the end of the relevant financial year
- Along with any tax payment due
Example:
If a company’s financial year ends on 31 December 2024, the corporate tax return must be filed by 30 September 2025.
Late filing or payment may attract fixed and variable penalties.
Corporate Tax Payment Obligations
Tax due must be paid:
- Before the applicable return filing deadline
- Through FTA-approved payment channels
Failure to pay on time may result in:
- Administrative penalties
- Accrued interest
- Increased compliance scrutiny
Documentation & Record-Keeping Requirements
Businesses must maintain records for at least seven years, including:
- Audited or management financial statements
- Corporate tax calculations
- Transfer pricing documentation (where applicable)
- Related-party transaction disclosures
- Exemption or relief election records
Proper documentation is essential during FTA audits or reviews.
Compliance Checklist for Businesses
To remain compliant, businesses should ensure they:
- Register for corporate tax on EmaraTax
- Maintain compliant financial records
- File corporate tax returns on time
- Pay taxes within prescribed deadlines
- Monitor penalties and voluntary disclosure options
Common Compliance Mistakes to Avoid
- Assuming 0% tax means no filing obligation
- Missing registration deadlines
- Incorrect classification of free zone income
- Poor record-keeping
- Ignoring transfer pricing rules
These errors can lead to penalties even where tax liability is low or nil.
Key Takeaways
- Corporate tax filing is mandatory for most UAE businesses
- Returns must be filed within 9 months of the financial year end
- Registration, filing, and documentation are critical
- Penalties apply for late or incorrect compliance
