Federal Tax Authority emphasises importance of submitting Corporate Tax Returns, payment of Corporate Tax

The Federal Tax Authority (FTA) reiterated today the importance of early preparation and timely submission of Corporate Tax Returns and payment of Corporate Tax Payable, within the specified deadlines for each Tax Period, in order to avoid incurring late payment penalties and non-compliance fines.

The FTA underlined that all Taxable Persons subject to Corporate Tax, as well as Exempt Persons required to register, must submit their Tax Returns (or annual declarations, in the case of Exempt Persons required to register for Corporate Tax) and settle the Corporate Tax Payable to the FTA within a maximum of nine (9) months from the end of their relevant Tax Period (or from the end of the financial year for an Exempt Person required to register).

The FTA explained that late submission of a Tax Return or a delay in settling the Corporate Tax Payable will result in an administrative penalty of Dhs 500 for each month, or part thereof, during the first twelve (12) months, increasing to Dhs 1,000 for each month, or part thereof, from the thirteenth month onwards.

 The FTA further clarified that a Tax Return may be filed directly by the Taxable Person or by any authorised individual acting on their behalf. This includes a registered tax agent or legal representative. However, if a Taxable Person provide inaccurate information in their Tax Return or fail to meet administrative requirements, penalties may apply under the Tax Procedures Law and the Corporate Tax Law.

The FTA highlighted that Corporate Tax registration is available through the EmaraTax digital tax services platform, launched as part of the FTA’s comprehensive digital transformation strategy and aimed at facilitating voluntary tax compliance and providing user-friendly, accessible services for taxpayers.

The EmaraTax platform is continuously updated and enables users to complete tax procedures easily and transparently, 24/7, including Corporate Tax registration, filing of Tax Returns, settling of Corporate Tax Payable, and other tax-related services.

The FTA emphasised the importance of submitting Tax Returns within the deadlines specified under the applicable legislation. All businesses registered for Corporate Tax are required to file their Tax Returns periodically in line with the statutory deadlines and settle any Corporate Tax Payable.

The Authority emphasised its commitment to encouraging accurate and timely filing of Tax Returns by providing a reasonable timeframe to assist Taxable Persons in meeting their obligations. To this end, the FTA has organised multiple awareness campaigns across the UAE to familiarise Taxable Persons with Corporate Tax, registration procedures, Tax Return filing, and settlement of Corporate Tax Payable.

FTA representatives also maintain continuous communication with Taxable Persons to gather feedback and explore solutions to any challenges they may face, ensuring the efficient implementation of the Corporate Tax Law without disrupting their business activities.

The FTA called on all Taxable Persons to review the Corporate Tax Law, along with all related legislation including Cabinet Decisions, Ministerial Decisions, FTA Decisions, guides and public clarifications issued by the FTA, and awareness materials related to Corporate Tax, all of which are available on the FTA’s official website at: https://tax.gov.ae/en/default.aspx.

WAM