Navigating Corporate Tax Filing Services in Dubai: A Step-by-Step Guide
As Dubai’s business environment changes with the introduction of corporate tax, grasping the filing process is essential for companies operating in the UAE. This guide presents the essential steps and factors to consider when navigating corporate tax filing services in Dubai.
Understanding Corporate Tax in Dubai
Effective for financial years beginning on or after June 1, 20231, the UAE has a corporate tax. The general corporate tax rate is 9% on taxable income exceeding AED 375,000. Income below this threshold is exempt from corporate tax.
Step 1: Identify your tax obligations
Determine whether your business qualifies for registration for corporate tax Note that free-zone businesses are not exempt from corporate tax, but several of them qualify for incentives.
Step 2: Register for Corporate Tax
Obtain a Tax Registration Number (TRN) from the Federal Tax Authority (FTA).5 The registration must be completed even if you are already registered for VAT Complete your registration ahead of the deadline for your first tax declaration.
Step 3: Prepare Financial Records
Finalize and check company accounts, starting with profit and loss statements and balance sheets. Establish good record-keeping systems as a means of documenting every monetary transaction correctly.
Step 4: Know the Filing Deadlines
Thus the filing should occur within 9 months from the end of the accounting year for corporate tax returns. In other words, if the financial year ends on December 31, 2020, then the due date for filing is set to September 30, 2021.
Step 5: File Corporate Tax Return
To file the return online, visit the EmaraTax portal. Prepare the submission of a single consolidated tax return of the business. Ensure inclusion of all required information about corporate tax liability and payment.
Step 6: Tax Payment
Make the payment for any corporate tax dues within the same 9-month period within which the return was filed Payments should be made through approved channels as prescribed by the FTA
Key Considerations
Get professional help wherever needed, most especially with respect to complex tax situations Be aware of the updates and changes to corporate tax laws and regulations Consider benefits of avoid incurring penalty and possibly being de-registered from authorities through timely compliance
Conclusion
Corporate tax filing in Dubai calls for a substantial measure of planning and meticulousness. With these in mind, ensuring compliance and the contribution of business to the unfolding business grid in the UAE should become easier. For specific assistance with corporate tax filing in Dubai, consider contacting Hallerbos for expert assistance based on your business scenario.