The Federal Tax Authority (FTA) has released fresh reminders about corporate tax returns for all businesses in the UAE to comply with the corporate tax requirements. In addition, the authority highlights the importance of maintaining accurate records and submitting tax returns within certain deadlines.
Importance of Record-Keeping
According to the FTA, all taxable persons must keep records for at least seven years after each tax year ends period. However, you must maintain the following records:
- Transaction records
- Assets and liabilities
- Shareholding structures
These records will allow the authority to verify the taxable income and ensure clarity. On top of that, businesses that are exempted from corporate taxes are required to keep supporting records that prove their exemption status based on the provisions of the Corporate Tax Law.
Filing Deadlines and Penalties for the UAE corporate tax returns
The FTA has clarified that you must submit the corporate tax returns and payments within nine months from the end of your company’s financial year. For example, businesses with financial years ending on 31 December 2025 must file their return and clear their tax liabilities by the 30th of September 2025.
If you fail to meet these deadlines or maintain proper documentation, you may face financial penalties as outlined in the UAE tax laws. So, you must adhere to these deadlines and maintain the necessary documents to be safe from fines.
Digital Filing Made Easy
The EmaraTax platform provides all corporate tax services, including registration, filing, and payments. In addition, businesses can also seek professional guidance from the registered tax agent listed on the official portal of the FTAs.
Why Compliance Matters
The corporate tax framework is a significant step that aligns the UAE with global practices. Therefore, it ensures timely filing and accurate record-keeping. So, businesses can avoid penalties and empower investor trust, and show financial responsibility.
The FTA has motivated taxable and exempt entities to carefully review the Corporate Tax Law, related Cabinet and Ministerial Decisions, and official FTA guidance to remain fully compliant.
Expert Insight
Tax experts in the UAE suggest that business owners like you create an internal compliance system and perform periodic reviews with the help of a certified advisor to decrease the risk of hefty fines. So, this method is going to ensure readiness before the submission deadline and develop long-term sustainability.
Read more:
[…] UAE Businesses Urged to Maintain Records and File Corporate Tax Returns on Time […]