UAE’s Corporate Tax Filing Deadline for companies incorporated between June 1 and June 30, 2023

Corporate tax filing is a crucial responsibility for businesses operating in the UAE. With the recent extension of the filing deadline to December 31, 2024, it is essential for companies to understand the requirements, deadlines, and penalties associated with corporate tax filing. This guide provides detailed information to help businesses navigate the process efficiently.

Key Dates and Deadlines

The UAE Federal Tax Authority (FTA) has extended the deadline for filing corporate tax returns and settling corporate tax payable to December 31, 2024. This extension applies to short tax periods ending on or before February 29, 2024¹. For companies incorporated between June 1 and June 30, 2023, the corporate tax return must be filed by December 31, 2024, covering the period from June 1, 2023, to December 31, 2023.

Penalties for Late Filing

Understanding the penalties for late filing is crucial to avoid unnecessary financial burdens. The penalties are structured as follows:

• Initial Penalty: AED 500 per month starting from June 1, 2023.
• Increased Penalty: AED 1,000 per month after 12 months of non-compliance.

These penalties emphasize the importance of timely filing to avoid escalating costs.

Steps to File Corporate Tax Returns

1. Gather Necessary Documents: Ensure all financial records, including income statements, balance sheets, and expense reports, are up-to-date and accurate.
2. Register with the FTA: If not already registered, companies must register with the FTA for corporate tax purposes.
3. Prepare the Tax Return: Use the FTA’s online portal to prepare and submit the corporate tax return. Ensure all information is accurate and complete.
4. Submit and Pay: Submit the tax return by the deadline and pay any corporate tax due.

Benefits of Timely Filing

Timely filing of corporate tax returns not only helps avoid penalties but also offers several benefits:

• Compliance: Ensures compliance with UAE tax laws and regulations.
• Financial Planning: Provides a clear picture of the company’s financial health, aiding in better financial planning and decision-making.
• Reputation: Maintains the company’s reputation with regulatory authorities and stakeholders.