Since the introduction of corporate tax in 2023, businesses operating in the United Arab Emirates (UAE) must comply with new tax obligations. Whether a local or foreign company, tax filing may seem complex. However, with proper preparation and a clear understanding of the process, businesses can easily meet tax requirements and avoid costly mistakes.

This guide provides a step-by-step overview of the tax filing process in the UAE, covering everything from financial statement preparation to tax return submission, deadlines, required documents, and common mistakes to avoid.

Financial Statement Preparation: A Critical First Step

• Before filing a tax return, businesses must ensure their financial statements are up to date and compliant with International Financial Reporting Standards (IFRS). This includes:

  • Balance sheets
  • Income statements
  • Cash flow statements
  • Supporting notes and disclosures

  Organizing Financial Documents

  To prepare tax filings accurately, businesses must gather key financial records, including:

  Internal financial reports (balance sheets, profit and loss statements, cash flow reports)
  Sales and purchase invoices
  Expense receipts (salaries, rent, utilities, operational costs)
  Contracts and commercial agreements
  Bank statements

  Calculating Taxable Profit

  After compiling financial data, businesses must adjust their accounting results to determine taxable income. In the UAE, some income sources are tax-exempt (e.g., revenue from Free Zones). Companies need to:

  • Exclude non-taxable income
  • Apply allowable depreciation and amortization
  • Account for available tax credits

  Estimating Tax Liability

  The UAE corporate tax rate is 9% on profits exceeding AED 375,000. Once taxable profit is determined, businesses must calculate their total tax liability before filing their return.

Tax Filing: Submitting Returns to Authorities

With financial records in place, businesses must submit their tax returns via the Federal Tax Authority (FTA) online portal.

Creating an FTA Portal Account

Companies must register and log in to the FTA portal (www.tax.gov.ae) to access tax filing services.

Completing the Tax Return Form

The Tax Return Form requires:

Taxable profit for the fiscal year
Adjustments for tax-exempt income and deductible expenses
Final tax liability calculation
Applicable tax credits or exemptions

✅ Accuracy is essential—any incorrect or missing information may lead to penalties or delays.

Submitting the Tax Return

Once completed, businesses file their tax return electronically via the FTA portal.

Tax Deadlines: Ensuring Compliance

Timely tax filing is essential to avoid penalties. Businesses must adhere to the following:

Fiscal Year Period: The UAE follows the Gregorian calendar (January 1 – December 31).
Submission Deadline: Companies must file tax returns within four months after their fiscal year ends. For example:
 If the fiscal year ends on December 31, the tax return deadline is April 30.
Tax Payment: Taxes must be paid at the time of filing to avoid penalties or interest charges.

Required Documents for Tax Filing

The FTA mandates specific documents for tax return submission, including:

Audited financial statements (prepared in compliance with IFRS)
Proof of prior tax payments (if applicable)
Supporting documents (invoices, expense receipts, tax exemption certificates)

✅ Businesses must submit all required documents on time to ensure compliance.

Common Mistakes to Avoid

Errors in Taxable Profit Calculation
Incorrect adjustments for non-taxable income or misclassification of expenses can result in incorrect tax liabilities.

Failing to Claim Tax Credits & Exemptions
Businesses may overpay taxes if they do not apply available deductions and tax incentives.

Late Tax Filing & Payment
Missing deadlines can lead to significant penalties and interest charges.

Inconsistencies Between Financial Statements & Tax Returns
All reported financial figures must match audited statements—discrepancies may trigger a tax audit.

Tools & Solutions for Efficient Tax Filing

Accounting Software: Platforms like QuickBooks, Xero, and Sage automate financial reporting.
Tax Management Tools: Solutions like Wolters Kluwer assist in tax compliance and integration with the FTA portal.
Audit & Tax Advisory Services: Many companies opt for professional tax consultants to ensure compliance and avoid filing errors.