Huge volume of tax returns reflects efficiency of procedural systems

The Federal Tax Authority (FTA) has issued a statement expressing its gratitude and appreciation to the large number of Corporate Taxpayers who have achieved high compliance rates – exceeding internationally targeted averages – regarding registration with the Authority and within the legal timeframes specified for each category.

With many taxpayers meeting their obligations in filing tax returns and annual declarations and paying due taxes within the prescribed periods, the FTA also noted that processing this large volume of returns reflects the success and efficiency of the legislative and procedural tax system, which aligns with international best practices and provides the latest digital compliance mechanisms, globally.

The statement also revealed that the response received suggests that sufficient information and guidance to enhance tax awareness, assist businesses, and enable them to comply voluntarily with ease and accuracy has been provided – across a number of awareness campaigns, by the Authority.

Khalid Ali Al Bustani, Director General of the Federal Tax Authority, announced that the number of Corporate Tax registrants has exceeded 640,000. His Excellency noted that this represents a strong response from registrants filing returns and remitting Corporate Tax ahead of the filing and payment deadline. The deadline being the end of September 2025 – for the tax period (financial year) ended 31 December 2024.

He emphasised that the past period witnessed a notable increase in compliance levels and responsiveness of taxpayers to tax legislation and procedures, driven by greater awareness and the spread of a tax culture. This comes as a result of the FTA’s commitment to maintaining constant communication with stakeholders in the tax sector to understand their views and strengthen their contributions to the Authority’s sustainable development plans.

His Excellency further highlighted the FTA’s efforts to deepen its engagement with the wider community its institutions, individuals, and all strategic partners through continuous meetings held via joint advisory and coordination committees and groups that include representatives from relevant entities and the private sector in the UAE.

He said: “Statistics show that hundreds of thousands of Corporate Tax returns and annual declarations have been processed from registrants whose tax period or financial year ended on 31 December 2024. This high level of tax compliance has been achieved as a result of the growing tax awareness among business sectors, and due to the ease of steps provided by the Authority for filing returns and settling due taxes through the ‘EmaraTax’ platform, which delivers round-the-clock digital tax services distinguished by clarity and efficiency.”

“Thousands of requests were received daily during the past period and were processed efficiently. The Call Centre also provided the option of immediate support to taxpayers, during peak times,” he added.

“In line with the UAE leadership’s wisdom in implementing directives to maintain a tax legislative environment that encourages voluntary compliance and adapts flexibly to changes, several initiatives were launched to support Corporate Taxpayers and facilitate compliance.

“Among them was the Cabinet Decision on the initiative to exempt Corporate Taxpayers and certain exempted persons required to register with the Authority from administrative penalties resulting from late registration applications, provided that they file their tax return (or annual declaration) within seven months of the end of their first tax period.”

His Excellency concluded: “As part of these facilitations, the FTA issued an official Decision, in September 2024, to extend the deadline for filing and paying Corporate Tax to 31 December 2024 for taxpayers who established, incorporated, or recognised on or after 1 June 2023, whose first tax period ended on or before 29 February 2024. Furthermore, a grace period was granted for registrants who delayed updating their tax records, from 1 January 2024 to 31 March 2025, allowing them to amend their tax records without administrative penalties for failing to notify the FTA of changes.”

His Excellency attributes the increased compliance rate and the success of the tax system in efficiently processing large numbers of returns and payments to the proactive steps and facilitations provided by the FTA.

All procedures related to Corporate Tax can be completed through the EmaraTax platform in just a few simple and clear steps, taking only a matter of minutes.

The platform is continuously enhanced to further streamline Corporate Tax registration and the submission of tax returns with greater ease and efficiency particularly after these services witnessed a significant transformation through the implementation of the “Zero Bureaucracy” programme.