FTA Urges Corporate Taxable Persons To Submit Tax Returns And Settle Liabilities Promptly

The Federal Tax Authority (FTA) has reminded all Corporate Taxable Persons, including those exempt but required to register, to submit their Tax Returns or Annual Declarations promptly. This submission must occur within nine months from the end of their respective Tax Periods or Financial Year for exempt persons. Timely submission helps avoid penalties for late filing and payment.

The FTA emphasises that every Corporate Taxable Person, irrespective of income level, must file their Tax Returns in compliance with UAE federal tax laws. The authority encourages businesses to file early rather than waiting until the deadline to prevent delays and potential penalties for late filing and payment.

Paying Corporate Tax before the deadline is crucial to ensure it reaches the FTA on time. The FTA warns that last-minute payments might not be processed promptly, leading to administrative penalties. Payment processing and electronic transfers via banks can take time, potentially resulting in overdue payment penalties if received after the deadline.

Corporate Taxable Persons should verify their Tax Periods based on their Financial Year and check deadlines for filing returns and settling outstanding tax liabilities. The EmaraTax digital services platform provides detailed and up-to-date information on this matter.

Businesses with a Financial Year ending on 31st December 2024 can immediately file their Tax Returns using the EmaraTax platform. Available 24/7, it offers clear steps for filing. It's important to ensure all information is correct and accurate. After filing, tax liabilities should be settled through EmaraTax before the end of September 2025 to allow processing time.

The FTA clarifies that submitting a Tax Return and paying due taxes simultaneously is unnecessary. Taxable Persons may consult Registered Corporate Tax Agents listed on the FTA’s website for assistance in completing these procedures.

Essential Information for Filing

Under the Federal Decree-Law on Corporate Taxation, Corporate Taxable Persons must file returns using prescribed forms and procedures. Essential details include:

• The relevant Tax Period
• Name, address, and TRN of the person
• Date of filing
• Accounting principles used
• Taxable income for the period
• Amount of any claimed Tax Loss Relief
• Carried forward Tax Losses
• Available Tax Credits under law
• Corporate Tax Payable for that period

The FTA urges reviewing the Corporate Tax Law, UAE Cabinet decisions, ministerial decisions, guides, instructions, and latest public clarifications issued by them. These resources are accessible via the FTA’s official website.

This comprehensive approach ensures accurate compliance with tax obligations while minimising risks associated with late submissions or payments.

With inputs from WAM