UAE Corporate Tax Return Filing

Corporate Tax Return Filing is the annual mandatory declaration of a company's financial performance, taxable income, and corporate tax liability to the Federal Tax Authority (FTA). It requires submitting audited or well-documented financial statements alongside the tax calculation.

Your Corporate Tax return must be filed and any tax due must be paid within 9 months following the end of your company's relevant tax period (financial year). For example, if your financial year ends on December 31, the deadline is September 30 of the following year.

The standard Corporate Tax rate is 9% on taxable income exceeding AED 375,000. Taxable income up to AED 375,000 is taxed at 0%. Free Zone Persons meeting certain qualifying conditions may benefit from a 0% rate on their Qualifying Income.

Yes. Even if your taxable income is below the AED 375,000 threshold and your tax liability is zero, you are legally required to file a Corporate Tax return. Failing to file will result in administrative penalties.

Failing to file your Corporate Tax return by the deadline will result in an immediate administrative penalty of AED 1,000 per month for the first 12 months, escalating to AED 2,000 per month thereafter. Late payments incur additional percentage-based penalties.

Yes. The Corporate Tax return must be based on standalone financial statements prepared in accordance with International Financial Reporting Standards (IFRS). Certain businesses, including those with revenue exceeding AED 50 million or Qualifying Free Zone Persons, must have these statements independently audited.

A QFZP is a Free Zone company that meets strict FTA criteria, including maintaining adequate substance in the UAE, deriving 'Qualifying Income', and complying with transfer pricing rules. A QFZP can benefit from a 0% Corporate Tax rate on its Qualifying Income.

No. Only expenses wholly and exclusively incurred for the purpose of the business are deductible. Personal expenses, fines, and certain entertainment expenses (limited to 50% deduction) are not allowable deductions.

Small Business Relief allows eligible resident companies with gross revenue up to AED 3 Million to be treated as having zero taxable income. If elected, they are not subject to the 9% tax, but they must still file a simplified Corporate Tax return.

Yes, tax losses can be carried forward indefinitely and used to offset up to 75% of taxable income in subsequent tax periods, provided the business meets specific continuity of ownership or business activity conditions.

Transactions between related parties and connected persons must comply with the 'arm’s length' principle. You must maintain transfer pricing documentation and disclose these transactions in your Corporate Tax return.