Filing income tax returns in the UAE

Reporting deadlines

9 months from the end of the financial year. 

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Most companies have a standard financial year ending on December 31st, so reports must be filed by September 30th of the following year. 

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The first financial year is specified in the company's certificate of incorporation. The deadline for submitting the first report is already specified there.  

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Registration

In order to file a report, a company must first register for income tax. All companies must do this, regardless of whether they are registered in the Mainland or Free Zone. 

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The deadline for registration is 3 months from the date of company registration. If you miss this deadline, the tax office will impose a fine of 10,000 AED. 

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Amnesty. It is possible to obtain an official exemption from paying a fine if the company files its income tax return 2 months before the due date. 

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Procedure for submitting a report

Reporting is submitted electronically through the EmaraTax personal account (FTA).

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It is necessary to fill out a detailed form. At the same time, the volume and content of questions may vary depending on the case. For example, for free zone companies, the form will be more complex and longer. 

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In some cases, you may be required to attach additional documents, including audited financial statements. 

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Accounting restoration

To submit income tax returns, a company must have correct accounting records. If the records were not kept or were kept with violations, they must be restored. This requires the participation of a qualified accountant familiar with the requirements of UAE legislation. 

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We help with the restoration of accounting in accordance with the requirements of the UAE legislation. 

Corporate Tax Rates in UAE

• 0% for companies with profits less than AED 375,000
• 9% for companies whose profit exceeds AED 375,000

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Companies with annual revenues of up to AED 3 million can benefit from the Small Business Relief tax exemption regime for periods ending before December 31, 2026.

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Tax payment deadline

Corporate tax must be paid within 9 months of the end of the financial year. Tax payment can also be made through the EmaraTax (FTA) portal. 

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Fines for late filing

Failure to submit reports on time will result in a fine of AED 500 for each month of delay (in the first 12 months). Thereafter - AED 1,000 for each month of delay. 

Features for companies in free zones (Free Zone Companies)

Companies registered in Free Zones can retain the zero tax rate on qualified income. 

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To do this you need:

• Already in the first tax report, select and mark that the company applies the tax exemption for free zones of companies and meets all requirements.
• If this is not done in the first report, the company's free zone exemption will be lost for both the current period and the four following years. 

Tax exemption for Free Zone companies

Benefits for free zone companies are not available to everyone. The possibility of applying the exemption depends on the type of activity, counterparties and other factors. For example, if a company is engaged in B2B trade, but is not from a designated free zone, it will not be able to apply the benefit.

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Therefore, it is important to analyze the company's activities in detail and make sure that it is eligible for the exemption. In addition, the use of the exemption imposes additional obligations on the company, which may increase operating costs.

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In each case, it is important to consider whether the exemption is justified. This often requires consultation with a tax lawyer and accountant. Our experts are ready to help you with this.