Corporate Tax Return Filing in UAE
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Corporate Tax Return Filing in UAE
Corporate Tax (CT) is a government-imposed tax on the profits of businesses operating within the UAE. Announced in January 2022, the UAE officially implemented federal corporate tax on June 1, 2023, at a standard rate of 9%. However, businesses earning annual profits below AED 375,000 are exempt from paying this tax. All companies, including exempt entities, must register for corporate tax and obtain a Tax Registration Number (TRN). This tax applies across all emirates, ensuring a uniform regulatory framework.
With evolving regulations and growing expectations from stakeholders, businesses must establish governance practices that align with both legal requirements and global best practices. From defining board responsibilities to implementing risk management strategies, corporate governance lays the groundwork for ethical decision-making and operational resilience
What is Corporate Tax (CT)?
Corporate Tax is a mandatory tax levied on company profits, governed by Federal Decree-Law No. 47 of 2022. Businesses are required to comply with this law from the start of their first financial year after June 1, 2023. The UAE introduced corporate tax to:
- Strengthen its position as a global business and investment hub.
- Accelerate economic development and sustainability goals.
- Align with international tax standards to combat harmful tax practices.
Who Needs to File Corporate Tax Returns?
Several entities must comply with corporate tax return filing, including:
- Corporations and Companies: All incorporated businesses, regardless of size or revenue.
- Limited Liability Companies (LLCs): Taxed based on jurisdictional laws, potentially as corporations or partnerships.
- Partnerships: Although partnerships don’t directly pay corporate tax, they file informational returns, impacting partners' individual tax filings.
- Non-Profit Organizations: Some nonprofits file informational returns to maintain tax-exempt status.
- Foreign Corporations with UAE Income: Entities generating income within the UAE are subject to corporate tax filing obligations.
- Trusts and Estates: Business income or income-producing assets held by trusts and estates may require corporate tax return filings.
- Free Zone Businesses: While enjoying tax incentives, these entities must still submit corporate tax returns to comply with UAE regulations.

Corporate Tax Rates
The UAE’s corporate tax system fosters fairness and economic growth. The standard rate is 9%, applicable to profits exceeding AED 375,000. For profits below this threshold, a 0% tax rate applies. Free zone businesses meeting specific criteria may benefit from tax exemptions.
Eligibility Criteria for Corporate Tax Filingi
Businesses required to file corporate tax returns include:
- Entities licensed to operate in the UAE.
- Free zone businesses adhering to regulatory requirements.
- Foreign entities conducting ongoing business activities in the UAE.
- Sectors like banking, real estate, and construction.
Required Documents for Corporate Tax Filing
To ensure accurate tax filings, businesses must maintain:
- Financial Statements: Balance sheets, profit & loss statements, and cash flow statements.
- Tax Residency Certificate (TRC).
- Business License.
- Detailed financial transaction records.
- Employee records, contracts, and invoices.
- Previous tax returns and audit reports.
- Transfer pricing documentation for related-party transactions.
Steps for Filing Corporate Tax Returns
- Registration: Obtain a Tax Registration Number (TRN) from the Federal Tax Authority (FTA).
- Maintain Records: Track financial transactions and ensure compliance with UAE tax laws.
- Tax Payment: Pay the calculated tax amount before the due date.
- Audit Compliance: Submit additional documentation during an FTA tax audit if required.
Corporate Tax Exemptions in UAE
Certain entities and income categories are exempt from corporate tax, such as:
- Small and Medium-Sized Businesses: Revenue up to AED 375,000.
- Free Zone Entities: Subject to specific conditions.
- Government Entities: Exempt unless conducting licensed business activities.
- Extractive and Non-Extractive Businesses: Income from natural resources may qualify for exemptions under Emirate-specific regulations.
- Public Benefit Entities: Entities established for educational, scientific, or charitable purposes.

Amending Corporate Tax Returns
To amend previously filed tax returns
- Identify Errors: Locate and document inaccuracies in income, deductions, or credits.
- Submit Amendments: Complete the necessary forms and include supporting documents.
- Explain Changes: Clearly state the reasons for amendments.
- File with the FTA: Resubmit corrected returns electronically or via postal mail.
- Track Progress: Maintain records of amendments and monitor the status of corrections.
OECD and Base Erosion and Profit Shifting (BEPS): Impact on UAE Corporate Tax
The UAE corporate tax landscape has undergone significant transformation under the influence of the OECD’s Base Erosion and Profit Shifting (BEPS) initiative. Focused on transparency, combating tax avoidance, and implementing standardized reporting, BEPS plays a pivotal role in shaping the UAE’s corporate tax framework. Below, we explore the key aspects of BEPS and its implications for businesses operating in the UAE.
Understanding BEPS and Its Objectives
BEPS refers to tax planning strategies used by multinational corporations to shift profits from high-tax jurisdictions to low or no-tax territories, minimizing overall tax liabilities. To address these practices, the OECD launched the BEPS project to establish equitable and transparent international tax systems.
Impact of BEPS on the UAE Corporate Tax Framework
Traditionally recognized as a low-tax jurisdiction, the UAE has embraced several BEPS recommendations to align with global standards. By doing so, the UAE enhances its business environment, offering transparency while remaining competitive.
Key BEPS-Related Laws in the UAE
Under BEPS Action 13, the UAE mandates multinational enterprises (MNEs) with significant consolidated revenues to submit CbCR reports. These reports provide detailed insights into income, taxes, and financial operations across jurisdictions, promoting transparency and minimizing profit-shifting opportunities.
Enhancing Transparency and Compliance
BEPS encourages comprehensive reporting of global financial operations, enabling tax authorities to scrutinize multinational structures effectively. Compliance with BEPS protects the UAE from potential sanctions and bolsters its standing in the international business community.
Strategic Tax Planning and Corporate Governance
Adhering to BEPS guidelines aids businesses in managing tax risks, fostering trust among stakeholders, and enhancing corporate governance. Multinational companies benefit from improved transparency and reduced reputational risks.
Benefits to the UAE Business Environment
BEPS compliance reinforces the UAE’s position as a global financial center, attracting investors who value transparency and adherence to international norms. This commitment promotes sustainable business practices, contributing to long-term economic stability.

Corporate Tax Filing and Compliance in the UAE
Post-Filing and Appeals Process
Accounting and Record-Keeping:
- Maintain records such as invoices, bank statements, and financial data for at least five years.
- Implement systematic digital or manual record-keeping for easy access during audits.
FTA Audits:
- Businesses may undergo audits based on risk assessments.
- Ensure thorough preparation and transparency during audits to strengthen tax credibility.
Dispute Resolution:
- Businesses can appeal FTA decisions by submitting reconsideration requests within 20 business days.
- Further escalation to the Tax Disputes Resolution Committee (TDRC) or federal courts is possible if disputes remain unresolved.

Penalties for Non-Compliance
Non-compliance with UAE tax laws results in significant penalties:
- Failure to maintain proper records: AED 10,000–20,000.
- Late submissions: AED 500–1,000 per month.
- Incorrect filings or delayed payments attract fines and interest charges, emphasizing the need for timely and accurate compliance.
Benefits of Hiring Corporate Tax Filing Consultants
Expert Guidance:
Consultants ensure accurate tax filings by leveraging their knowledge of UAE tax laws.
Minimized Errors and Penalties:
Professional assistance reduces the risk of errors, preventing financial losses and reputational damage.
Optimized Tax Planning:
Consultants help develop strategies to minimize tax liabilities, aligning with business objectives
Regulatory Compliance:
Stay updated with evolving tax regulations to maintain compliance and avoid penalties.

Simplifying Corporate Tax Compliance
You Are At The Right Place
At Elevate Accounting and Auditing, we specialize in seamless corporate tax return filing in the UAE. Our services include:
- Annual tax return preparation and submission.
- Management of quarterly estimated tax payments.
- Maintenance of accurate records to avoid penalties.
- Expert representation during audits and disputes.
With our dedicated team, you can ensure compliance with UAE tax regulations while focusing on your business growth. Partner with Elevate for stress-free tax management and optimized corporate tax solutions.
Contact us today to streamline your corporate tax compliance journey.