UAE Corporate Tax Annual Tax Return

UAE Corporate Tax Annual Tax Return:

Corporate Tax Return should be filed within the 9 months from the end of the relevant tax period. One Tax Return at whole and other related supporting schedules for each tax period should be submitted while filing returns under corporate tax.

Provisional Corporate Tax Return or payment of advance tax is not appreciable under corporate tax. Additional documents required for returns to be filed includes;

✔            For Mainland, financial statements which are audited by an accredited audit firm.

✔            For Free Zone, since Audit is mandatory for Free Zone and even though they are the persons who benefit from 0% tax regime, appropriate records which are maintained to explain the relevant information should be filed.

✔            Exempted persons are also required to maintain the records to ascertain their exempt status.

Corporate tax should be paid within the 9 months from the end of the relevant tax period. When a refund is due, it can apply to FTA for the same. Corporate Tax Return filed will be reviewed by the FTA within the time-frame as prescribed by the law. A Taxpayer can challenge an amended assessment via the process and procedures outlined in Tax Procedures Law if necessary.

Corporate Tax regime gives the option to taxpayers to avail clarification from FTA on a particular contract to determine taxability. Clarification would be binding on FTA when the facts and circumstances are similar in the case.

The new Corporate Tax regime insists on maintenance of books of accounts and their audit as well. In order to support start-ups and small businesses in the UAE and to manage the compliance burden on these taxpayers, the UAE Corporate Tax regime intends to provide relief for small businesses in the form of simplified financial and tax reporting obligations. This is another good move to promote the start-ups and SMEs.

The eligibility conditions for a business to be considered as start-ups and small businesses is awaited. It has been indicated that Tax Procedures Law shall be released which will introduce the time limit for assessment and reassessment as well as conditions under which an appeal can be filed to challenge the assessment.