What is Corporate Tax Submission?
Corporate tax submission is a legal duty of businesses operating in the UAE. Non-compliance will result in hefty fines and penalties. It includes providing a report to the tax authority, representing the company’s income and expenses. No matter whether you are a startup, SME, or a multinational company operating in Dubai, you have to submit the tax return to the relevant authority within a specified period.
At Balance Brite, we offer professional corporate tax submission services in Dubai, helping companies adhere to tax laws. Our FTA-approved experts will manage everything from start to finish, allowing you to expand your business while managing the complexities. They stay informed about changes in the UAE tax laws, ensuring your business remains fully compliant.
Corporate Tax Rates & Eligibility
According to the Corporate Tax Law:
- Corporate tax of 9% is levied on income exceeding AED 375,000.
- Zero percent tax on income up to AED 375,000.
- Multinational organizations are taxed according to OECD Pillar Two Criteria.
- Companies operating in free zones can benefit from exemptions if they meet the criteria.
Who Needs to Submit Tax Returns?
You have to submit the corporate tax return if your company is registered with the UAE corporate tax. The following are required to file tax returns:
Documents Required for Corporate Tax Submission in Dubai
During the process of tax return submission, you have to provide information about the company’s profit and expenses. This will help calculate the tax amount that will be paid to the government. You have to provide the following documents:
Deadline for Submitting Corporate Tax Returns
All the businesses operating in Dubai or any other emirate of the UAE must submit their tax return and pay the corporate tax to the Federal Tax Authority (FTA) within nine months following the end of their tax period. For example, if a tax period of a company starts on June 1, 2025, it will have to submit the tax by February 28, 2027. The companies with a first tax period commencing on January 1, 2026, will have a deadline up to September 30, 2027.
Penalties for Late or Incorrect Filing
The companies that fail to submit the corporate tax return within the specified period may face penalties and fines. Here are the key fines:
- Late Filing: If a business failed to submit the corporate tax returns within the Federal Tax Authority (FTA) deadline, it may face a fine of AED 10,000.
- Late Filing – Monthly: After the initial penalty of AED 10,000, the company may face recurring monthly penalties. AED 500 for each month (or part thereof) for the first year, while AED 1,000 per month subsequently.
- Incorrect Filing: In case you have filed an incorrect return, you may face additional penalties. The imposed fine depends on the level of error and the value of the understated tax.
Why Trust Balance Brite For Corporate Tax Submission
Choosing the right firm for corporate tax submission in Dubai can make all the difference. Our professionals provide clear and customized tax solutions, helping you maintain compliance with the regulatory standards. Here’s why you should trust us:
Our experts have deep knowledge of local tax laws, helping you adhere to local corporate tax standards.
Whether you are a startup, SME, or an international organization, we provide expert-driven and tailored advice that suits your goals.
We conduct risk assessments to identify risks that could result in significant fines and penalties.
We ensure complete transparency and give you peace of mind by keeping you informed at every stage of the tax submission journey.
FAQs
What is a corporate tax submission?
It is the process of submitting a report to the tax authority that includes the company’s income and expenses.
Who needs to submit corporate tax in the UAE?
All businesses operating in the UAE, including mainland, free zones, and multinational organizations, must submit corporate tax if their income is greater than AED 375,000. Exempt and zero-profit companies are also required to register.
What is the deadline for corporate tax return submission in the UAE?
Everyone must submit their corporate tax returns within 9 months following the end of their financial year.
What documents will be required for corporate tax filing?
Financial statements, calculations of taxable income, tax depreciation records and plans, transfer pricing documentation, records of family-related transactions, and provision movement schedules.
What happens if I fail to submit corporate tax returns on time?
You may face heavy fines and penalties if you fail to submit returns on time.