UAE FTA Reminds Businesses to File Corporate Tax on Time

The Federal Tax Authority (FTA) has reminded all businesses in the UAE to file their corporate tax returns and pay any taxes owed on time. This reminder applies to all corporate taxpayers, including companies that are exempt but still required to register.

Businesses must submit their corporate tax returns or annual declarations within nine months from the end of their financial year or tax period. Filing on time helps companies avoid late filing penalties, while paying taxes late may result in late payment fines. The FTA emphasizes that every company, no matter its size or income, must file a corporate tax return under UAE law.

Why Early Filing Matters

Filing tax returns early has several benefits. It ensures that payments are processed on time and avoids last-minute problems. The FTA warns that bank transfers may not happen instantly, and any delays could lead to penalties. Therefore, submitting returns and paying taxes early is highly recommended.

Using EmaraTax for Easy Filing

The EmaraTax platform makes it simple for companies to manage their tax filings and payments online, 24/7. Businesses can check their tax periods, see deadlines, and file returns easily. For example, companies with a financial year ending on December 31, 2024, can file returns immediately on EmaraTax. To avoid delays, payments should be made by September 30, 2025.

Importantly, the FTA clarified that filing and payment do not have to happen at the same time. Companies can file their return first and pay later, giving businesses flexibility in managing their finances.

Guidance for Businesses

The FTA recommends consulting registered corporate tax agents listed on its website. These agents can help companies:

• Prepare accurate corporate tax returns
• Apply correct accounting methods
• Claim tax reliefs and credits
• Report carried-forward losses

What to Include in Corporate Tax Returns

When filing a corporate tax return, businesses should include:

• Tax period
• Company name and address
• Tax Registration Number (TRN)
• Filing date
• Accounting principles used
• Taxable income and corporate tax payable
• Any tax loss relief claimed
• Carried-forward tax losses
• Available tax credits

Providing this information ensures that the FTA can process returns accurately and confirm that businesses meet legal requirements.

Legal Requirements

All UAE businesses, regardless of income, must follow the Federal Decree-Law on the Taxation of Corporations and Businesses, along with its implementing decisions. Non-compliance may result in fines or other administrative actions.

Businesses should review official FTA guides, instructions, and clarifications to make sure their filings are accurate and timely. Following these rules helps companies stay compliant and avoid penalties.

Understanding Corporate Tax Payments

UAE law requires all businesses to calculate and pay corporate taxes within nine months of their financial year-end. Even businesses with no taxable income must file returns to report nil tax. Companies claiming tax loss relief or carrying forward losses must include this in their returns so that the FTA can record it correctly for future use.

When making payments, businesses should allow enough time for bank transfers. Last-minute payments may not clear instantly, which could trigger penalties. Early payments via EmaraTax reduce this risk.

Benefits of Filing Early

Filing early offers many advantages:

1. Avoid penalties for late filing or payment
2. Smooth processing of tax payments
3. Clear understanding of tax obligations
4. Better financial planning and reporting

Consulting Corporate Tax Agents

The FTA encourages businesses to work with registered corporate tax agents. These experts can help:

• Prepare accurate returns
• Understand tax laws
• Calculate payable taxes
• Claim credits and reliefs
• Record carried-forward losses

Working with agents ensures that filings are correct and deadlines are met.

Important Deadlines

Businesses must remember:

• Corporate tax returns: File within nine months of financial year-end
• Tax payments: Must also be completed within nine months
• Example: Companies with a financial year ending on December 31, 2024, should file returns immediately and pay by September 30, 2025

Meeting these deadlines is crucial to avoid fines or administrative issues.

Using FTA Resources

The FTA website offers tools and guides to help businesses:

• Access filing instructions
• Learn how to use EmaraTax
• Understand tax rules
• Find registered corporate tax agents

Using these resources helps companies file accurately and pay taxes on time.

UAE’s Focus on Corporate Tax Compliance

The FTA’s reminders show the UAE government’s focus on efficient tax administration and compliance across all business sectors. Following these rules helps the UAE maintain a smooth corporate tax system, while supporting business growth and government revenue.

Filing taxes on time also reflects good corporate governance. Businesses that comply consistently show reliability and professionalism in the UAE business community.

Tips for Businesses to Stay Compliant

To stay compliant, companies should:

1. Check tax periods and deadlines on EmaraTax
2. Prepare accounting records in advance
3. Calculate taxable income accurately
4. Include tax reliefs and carried-forward losses
5. Plan payments early to avoid delays
6. Consult corporate tax agents for guidance

Following these steps ensures timely filing and payment, avoids penalties, and maintains a strong reputation with the FTA.