Tax Return in UAE: How to File, Deadlines & Deductions

Individuals in the UAE are exempted from filing tax returns; however, for businesses operating in the UAE, whether in the Free Zones or on the mainland, filing a tax return in the UAE is an essential legal compliance. Now that the corporate tax has come into effect, businesses are required to submit a tax return to the UAE.

Most tax returns must be filed by the ninth month following the end of the financial year. Companies are given a specific time to prepare and submit their federal tax return UAE. Taxes are calculated according to the type of business it is, the business’s structure and the deductions allowed by law. To make things simple for you, the guide describes the main steps of corporate tax filing, when it’s due, the process to follow and penalties.

What is the UAE Tax System?

The UAE started the journey of corporate income tax on 9 December 2022 when it introduced the Corporate Tax (CT) Law. Any business that is considered a “Taxable Person” has to submit a UAE tax return and pay the tax to the Federal Tax Authority within 9 months after finishing a financial year.

The EmaraTax Portal is the way to submit these documents. A return may be made by the business itself, a Tax Agent or a legal representative. If a business is a tax group or unincorporated partnership, the parent organisation or specified partners are required to send in the return. 

Businesses need to fulfil three primary conditions to ensure that the corporate tax return in the UAE is accurately filed to avoid penalties: 

• Tax Registration: Corporate tax applies to every entity operating in the UAE, which includes locally incorporated businesses, branches of foreign corporations, and the individuals behind those businesses whose business income exceeds AED 1 million a year. All taxable persons must register with the Federal Tax Authority (FTA) and obtain a valid Tax Registration Number (TRN) in accordance with the law. 
• Financial Statements: All entities are required to prepare standalone financial statements following the applicable accounting standards in the UAE e.g. International Financial Reporting Standards (IFRS). These may be used for tax reporting and will be used as the official basis for filing a tax return. 
• Taxable Income Calculation: The start point for taxable income is the accounting profit, and must be adjusted in light of exempt income, allowable deductions and non-allowed tax deductions, in order to correctly assess the correct tax liability for reporting in the corporate tax return.

Who Needs to File a Tax Return in the UAE?

Under the UAE Corporate Tax regime, the filing obligation is the responsibility of all taxable persons. The definition of taxable persons fits into the following four categories: natural persons conducting business activities (e.g. sole proprietors), juridical persons (i.e. companies), Free Zone entities, and other exempt or government related entities (where taxable business is being conducted in the UAE).

• Natural Persons must disclose turnover from UAE-based activities, their accounting method (cash or accrual), and their residency status for corporate tax purposes.
• Juridical Persons must indicate group affiliations, permanent establishments, income sources, and financial statement practices.
• Free Zone Persons must confirm registration status, QFZP election (if applicable), and compliance with the qualifying criteria to benefit from preferential CT rates.

Some entities, like government bodies, pension funds, and qualifying public benefit entities, are exempt but must file an annual declaration confirming continued eligibility. If their status changes during a tax period, they must submit a UAE tax return for that period.

Tax Return Deadlines in the UAE

Missing a deadline can cost you. To stay compliant, businesses must be aware of key UAE tax return deadlines for filing, payment, and corrections.

How to File a Tax Return in the UAE

Filing a corporate tax return in the UAE is a legal compliance step that businesses must take if they are registered under the Federal Tax Authority (FTA). Here is the step-by-step process, carefully simplified for you:

1. Ensure Corporate Tax Registration: Register with the Federal Tax Authority (FTA) and obtain a Tax Registration Number (TRN) via the FTA’s EmaraTax site. Delayed registration may result in penalties.
2. Gather Required Documents: Collect all documents for the tax period, including trade license, audited or bank statements, revenue and expense ledgers, payroll records, and evidence for deductions or exemptions. Documents must be complete and accurate.
3. Prepare the Corporate Tax Return: Calculate taxable income using the FTA tax return template. Apply deductions and exemptions (depreciation, tax losses, related-party transactions). Attach supporting documents as needed.
4. Submit the Tax Return: File the tax return electronically via the FTA's e-Services within 9 months after the fiscal year-end. Late submission incurs penalties.
5. Make the Payment: Pay any tax due by the filing deadline using the payment options provided on the FTA portal. Delays result in interest or fines.
6. Maintain Tax Records: Keep all tax-related documents for at least five years. The FTA may request these during audits or reviews. Proper recordkeeping is essential for compliance and dispute resolution.

Penalties for Non-Compliance with Corporate Tax in the UAE

To reinforce adherence to corporate tax regulations, the UAE Ministry of Finance enacted Cabinet Decision No. 10 of 2024. This decision revises the administrative penalties established under Cabinet Decision No. 75 of 2023. These changes correspond to Federal Decree-Law No. 47 of 2022, governing the taxation framework for corporations and businesses in the UAE.

UAE Government Tax Resources and Portals

The UAE government provides multiple official channels for taxpayers to access tax services, information, and support. These resources are managed primarily by the Federal Tax Authority (FTA) in coordination with the Ministry of Finance and are accessible through various government portals.

Conclusion

Individuals in the UAE don't need to file personal income tax returns; however, every UAE-registered business must submit a corporate tax return with the Federal Tax Authority (FTA) no later than nine months after the close of its financial year. The process requires FTA registration, compilation of supporting financial statements, preparation and electronic submission of the return through the EmaraTax portal, settlement of any liability, and retention of accounting records for a minimum of five years. Late filing, omissions or inaccuracies trigger substantial administrative penalties, so strict observance of statutory rules and deadlines is essential to prevent fines or other legal consequences.