Corporate Tax Return Filing in Dubai – Step-by-Step Guide

With the introduction of corporate tax in the UAE, businesses in Dubai are now required to maintain accurate financial records and file annual tax returns with the Federal Tax Authority (FTA). Corporate tax return filing in Dubai is a mandatory process that ensures compliance with the UAE’s tax regulations and avoids costly penalties.

At Profit Track Accounting, we guide businesses through the tax return filing process with ease, ensuring accuracy, compliance, and peace of mind. This blog provides a step-by-step guide to corporate tax return filing in Dubai.

What is Corporate Tax Return Filing in Dubai?

Corporate tax return filing is the process where businesses submit their taxable income and tax liability details to the Federal Tax Authority (FTA). The return must be filed annually and includes details of revenue, expenses, deductions, and applicable tax.

In Dubai, the standard corporate tax rate is 9% on profits above AED 375,000, while profits up to AED 375,000 are taxed at 0%. Multinational companies that fall under OECD Pillar Two rules may face a 15% tax.

Who Must File Corporate Tax Returns in Dubai?

The requirement for corporate tax return filing in Dubai applies to:

Companies licensed in mainland Dubai.
Free zone companies (if they do not meet exemption conditions).
Foreign companies generating income in the UAE.

Exemptions may apply to government entities, extractive industries, and approved charities.

Step-by-Step Guide to Corporate Tax Return Filing in Dubai

Step 1: Corporate Tax Registration

All businesses subject to corporate tax must first register with the Federal Tax Authority (FTA) and obtain a Corporate Tax Registration Number (TRN).

Step 2: Maintain Proper Accounting Records

Businesses are required to prepare and maintain audited financial statements in line with international accounting standards. Records must be kept for at least 7 years.

Step 3: Calculate Taxable Income

Taxable income is calculated by deducting allowable expenses, depreciation, and adjustments from total revenue. Profits up to AED 375,000 are exempt, while amounts above that threshold are taxed at 9%.

Step 4: Prepare the Corporate Tax Return

The corporate tax return must include:

Gross revenue.
Deductible expenses.
Net profit (taxable income).
Calculated corporate tax liability.

Step 5: File the Corporate Tax Return Online

The return is filed electronically through the FTA online portal. Businesses must ensure that all details are correct before submission to avoid penalties.

Step 6: Pay the Corporate Tax Due

After submission, businesses must settle their tax liability by the deadline set by the FTA. Late payments can lead to penalties and interest charges.

Compliance & Penalties for Late Filing

Failure to comply with corporate tax return filing in Dubai can result in:

Administrative fines for late submission.
Penalties for incorrect or incomplete returns.
Interest charges on unpaid taxes.
Potential legal action by the FTA.

Staying compliant not only avoids penalties but also builds trust and credibility for your business.

How Profit Track Accounting Can Help

At Profit Track Accounting, we simplify the process of corporate tax return filing in Dubai by offering:

Corporate tax registration with the FTA.
Preparation and submission of tax returns.
Tax planning and advisory for businesses.
Accounting and bookkeeping support.
Ongoing compliance monitoring to prevent penalties.

Our team ensures that your returns are filed accurately and on time, so you can focus on growing your business.

Final Thoughts

The introduction of corporate tax has added new compliance responsibilities for businesses in Dubai. Filing corporate tax returns correctly and on time is crucial to avoid penalties and maintain good standing with the FTA.

Partnering with Profit Track Accounting gives you access to expert tax consultants who handle every step of the process, ensuring full compliance with UAE tax laws.

FAQ

1. When is the deadline for filing corporate tax returns in Dubai?

Corporate tax returns must be filed annually within the deadline specified by the Federal Tax Authority (usually within 9 months of the end of the financial year).

2. Can free zone companies be exempt from filing corporate tax returns?

Free zone companies that qualify for 0% tax incentives must still file corporate tax returns, even if they don’t have a tax liability.

3. What documents are required for corporate tax return filing?

Businesses must submit financial statements, revenue records, expense details, and supporting documents required by the FTA.

4. What happens if I miss the filing deadline?

Late submission leads to administrative penalties, fines, and possible interest charges on unpaid taxes.

5. How can Profit Track Accounting help my business with tax return filing?

Profit Track Accounting offers end-to-end corporate tax return filing in Dubai, from registration to return submission, compliance monitoring,