Coporate Tax Filing Deadline - 30 Sept 2025

The First Corporate Tax Filing Deadline: September 30, 2025

The UAE's Corporate Tax Law (Federal Decree-Law No. 47 of 2022) came into effect for financial years starting on or after June 1, 2023. For most businesses, this means the first tax period began on January 1, 2024, and will end on December 31, 2024.

The law stipulates that tax returns must be filed and any payable tax settled within nine months after the end of the tax period. Therefore, for a business with a financial year ending on December 31, 2024, the deadline to file and pay is September 30, 2025.

Important: This deadline is strict. There's no separate deadline for payment; both the return submission and tax payment must be completed by the same date.

Who Must File?

Generally, any business with a valid license in the UAE is required to file a corporate tax return, even if its taxable income is zero. This is a key distinction from other tax regimes.

Exemptions: Some entities are exempt from filing, including:

• Government Entities

• Public Benefit Entities

• Qualifying Investment Funds

• Entities under Free Zones that meet the criteria to be a Qualifying Free Zone Person and have zero tax liability for the period.

It is crucial to verify your eligibility for any exemption. If you are unsure, it's safer to register and file to avoid penalties.

Calculating Your Taxable Income

The UAE's corporate tax is levied on the Taxable Income of a business, not its revenue. The process for calculation involves:

1. Starting with accounting net profit. This is the figure from your company's financial statements.

2. Making specific adjustments. The UAE Corporate Tax Law outlines various adjustments to arrive at your taxable income. These include:

   • Deductible vs. Non-Deductible Expenses: Certain expenses like entertainment costs may have limits, while fines and penalties are generally not deductible.

   • Depreciation: Tax depreciation may differ from accounting depreciation.

   • Related Party Transactions: Transactions between related parties must be conducted on an arm's length basis, a key concept under the UAE's transfer pricing rules.

   • Tax Grouping: A parent company can apply to form a tax group with its subsidiaries. If approved, the group can file a single consolidated return, and intra-group transactions are generally disregarded.

Mandatory Audited Financial Statements

While all taxable persons must maintain sufficient records, the law requires specific categories of businesses to prepare and maintain audited financial statements. According to Ministerial Decision No. 82 of 2023, these are:

• A taxable person with a revenue exceeding AED 50 million in the relevant tax period.

• A Qualifying Free Zone Person.

If your business falls into either of these categories, an audit is a prerequisite for filing your tax return.

Navigating Penalties for Non-Compliance

The Federal Tax Authority (FTA) has established a clear penalty regime for violations. Failure to file on time or maintain proper records can result in significant fines.

• Late Filing: A penalty of AED 500 per month for the first twelve months of delay, increasing to AED 1,000 per month thereafter.

• Failure to Register: A late registration penalty of AED 10,000 will be imposed if a business does not register within the specified timelines.

• Incorrect Information: Filing an incorrect tax return can lead to penalties, although the FTA allows for voluntary disclosures to correct errors before a tax audit is initiated, often with reduced penalties.

It is essential to stay on top of all requirements to avoid these administrative penalties. The FTA uses the EmaraTax platform for all filings and payments, which offers a streamlined, user-friendly process.

The countdown to the first corporate tax deadline is on. Proactive preparation, accurate financial record-keeping, and a thorough understanding of the law are your best defenses against non-compliance.