Navigate UAE corporate tax with ease! Learn about registration, filing deadlines, exemptions, and more. Partner with BMS Auditing for expert guidance and compliance.
Businesses in the UAE are required to prepare and file a Corporate Tax return after each financial year, along with any necessary supplemental schedules. UAE companies are not required to file provisional Corporation Tax returns or make advance payments.
To navigate these requirements effectively, reach out to BMS Auditing’s Corporate Tax experts in Dubai. Here’s what you need to know:
- Registration: All Taxable Persons, including those in Free Zones, must register for Corporate Tax and obtain a Corporate Tax registration number.
- Exempt Persons: The Federal Tax Authority may mandate certain Exempt Persons to register for Corporate Tax as well.
- Filing and Payment: Taxable Persons must file a Corporate Tax return for each Tax Period within nine months of the period’s end. All taxes due must be paid by this same deadline.
Effortlessly handle all your Corporate Tax compliances with the assistance of BMS Auditing’s experienced consultants.
Calculation of Taxable Income: UAE Corporate Tax Law
Under UAE corporate tax law, taxable income is defined as the accounting net profit derived from the company's financial statements prepared by IFRS.
At BMS Auditing, we collaborate closely with our clients to ensure the accurate determination of taxable profit. Our experienced team conducts thorough assessments to confirm that all relevant factors are considered, enabling your company to make correct submissions when filing corporate tax returns. By partnering with us, you can navigate the complexities of tax calculations confidently, ensuring compliance and minimizing the risk of errors.
Exemptions from Corporate Tax in the UAE
The following are exempted from corporate tax in the UAE
- The Federal Government of the Emirates; Governments of the Emirates; their agencies and governing bodies, public organizations
- Government-owned companies performing sovereign functions, so listed in a Cabinet decision
- Companies engaged in extracting and using natural resources in the UAE whose activities are taxable at the Emirate level.
- Public benefit institutions and charities are listed in a Cabinet decision.
- Public and regulated private retirement and social security funds.
- Investment funds, under certain limitations.
Our reliable tax specialists are available to consult on your company’s tax obligations.
Residency Status Under UAE Corporate Tax Law
Below are the three categories for entity classification for UAE Corporate Tax:
Resident Entities:
- Those established on or incorporated within the UAE
- Foreign companies which are managed and controlled effectively in the UAE.
Elements of effective management and control:
- Key managerial and business decisions are made within the UAE.
- Decision-makers or directors perform their duties from within the UAE.
Non-Resident Taxation
The UAE will tax non-residents on
- Income sourced within the UAE
- Taxable income from a Permanent Establishment in the UAE
Understanding one's residency status will be very important for correct tax compliance. BMS Auditing's specialist team will assess the company's status and give you case-specific advice concerning your residency classification under the UAE Corporate Tax law. We will guide you through the intricacies of UAE tax law in a way that strengthens your tax stance while ensuring full compliance.
UAE Corporate Tax Filing Schedule
As per UAE Corporate Tax regulations, entities are required to submit their tax returns within a specified timeframe following the conclusion of their financial year. The prescribed filing period is as follows:
- Filing Deadline: Nine months after the financial year-end
- For example, consider a standard calendar year financial period:
- Tax Period: January 1, 2024 - December 31, 2024
- Corresponding Due Date: September 30, 2025
Filing Deadline for UAE Corporate Tax
BMS Auditing is urging business organizations to now seek out and apply for Corporate Tax registration in the UAE. The Ministry has confirmed that if a company does not register under the deadlines set by the Federal Tax Authority, an administrative penalty of AED 10,000 will be levied on the entities. This penalty will incur on entities failing to submit their applications for Corporate Tax registrations under timelines provided by the Federal Tax Authority.
BMS Auditing stresses the importance of timely compliance. We would assist you in resolving the issue of registration, according to our best knowledge about regulatory requirements and deadlines.
The benefits of engaging BMS Auditing as your tax consultant:
Given this new landscape in the UAE concerning corporate tax, BMS Auditing provides critical regulatory expert services on all matters related to tax. Our Dubai-based team of accountants and tax advisors assure you of complete tax compliance coupled with an efficient process of adapting to the new framework.
BMS Auditing is established in UAE tax matters, with the implementation of VAT and excise tax for more than a thousand clients. With BMS Auditing, clients will gain a holistic solution to Corporate Tax challenges, from corporate tax impact assessments, regulatory interpretation, strategic tax planning, preparation and submission of tax returns, and support.
Businesses can therefore choose BMS Auditing for them to benefit from the deep tax assessments and advisory services.
Empowering UAE Businesses: Your Trusted Partner in Corporate Tax Navigation
As the UAE's corporate tax landscape continues to evolve, partnering with BMS Auditing offers businesses a strategic advantage. Our extensive experience, comprehensive services, and commitment to compliance position us as an ideal partner to navigate the complexities of UAE corporate tax, ensuring your business not only meets regulatory requirements but thrives in this new fiscal environment.
