Taxable persons eligible for small business relief must submit simplified corporate tax returns: FTA

The Federal Tax Authority (FTA) has emphasised that Taxable Persons eligible for the Small Business Relief must continue to fulfil all their obligations under the Corporate Tax Law for each tax period.

These obligations include registering for Corporate Tax, submitting simplified tax returns, and maintaining all relevant records to support the accuracy of the information provided in their tax returns or any other documents required to be submitted. Such records enable the FTA to verify Revenue, Taxable Income and the eligibility for the Small Business Relief for Corporate Tax purposes.

The FTA called on Taxable Persons, and exempt persons required to register, to submit their Corporate Tax returns (or annual declarations) and pay any Corporate Tax due within nine months of the end of their respective tax period or financial year, as applicable.

The Authority stressed the importance of preparing early by gathering all documents required to complete Corporate Tax returns (or annual declarations) and ensuring that any Corporate Tax due is paid on time. This is a fundamental legal obligation that supports compliance with tax legislation. Early preparation also enables taxpayers to meet their obligations efficiently and avoid late-submission penalties and other non-compliance sanctions.

The FTA confirmed that taxpayers whose financial year ended on 31st December 2025 must submit their Corporate Tax returns and settle any Corporate Tax due no later than 30th September 2026. It further clarified that eligible businesses must elect to apply Small Business Relief through their Corporate Tax returns.

Furthermore, eligibility for the relief does not remove the obligation to file a Corporate Tax return. Businesses that elect the relief benefit from a simplified tax return, thereby reducing the amount of information required to be submitted.

The Authority explained that Small Business Relief treats an eligible resident person as having earned no taxable income for Corporate Tax purposes if its revenue does not exceed Dhs3 million for the relevant tax period and all previous tax periods. In order to demonstrate its eligibility to benefit from the Small Business Relief, the eligible Taxable Person must be able to provide evidence to the FTA confirming that its revenue has not exceeded the Small Business Relief threshold throughout the relevant tax periods.

Abdulaziz Mohammed Al Mulla, Director General of the FTA, affirmed the Authority’s commitment to continuously enhancing its services in accordance with international best practices, providing comprehensive support to the business community, and facilitating compliance with tax legislation, including the Corporate Tax Law and its implementing procedures, with accuracy, efficiency, and ease.

He added that Corporate Tax registration, tax return submission, and payment of Corporate Tax due are available 24 hours a day, seven days a week through the EmaraTax digital tax services platform, which provides a clear, simple, and seamless filing process. Taxable persons may submit their returns directly through the platform or seek assistance from FTA-approved tax agents, whose details are available on the Authority's website.

The FTA noted that the records and supporting documents required to be retained and submitted in connection with a Corporate Tax return may vary depending on the nature of the taxpayer’s business activities. However, certain core records should be maintained, including, among others, records of transactions during the tax period, records of assets including details of acquisitions and disposals, records of liabilities, and records of shares or ownership interests held at the end of the tax period.

The Authority stressed the importance of reviewing the Corporate Tax Law, the relevant implementing decisions, and the guidance issued under the Law, which are available on the Federal Tax Authority's website.

WAM