[World Tax News] UAE Releases Guide on Filing of Corporate Tax Return and More

Editorial Team – [2024] 168 taxmann.com 310 (Article)

1. UAE releases guide on filing of Corporate Tax Return

A Taxable Person is required to submit a Tax Return and pay any Corporate Tax due to the FTA within 9 months of the end of its Tax Period. In this respect, the UAE Federal Tax Authority has published a corporate tax guide on furnishing tax returns.

This guide provides general guidance on filing and completing a Corporate Tax Return. It provides readers with an overview of the information to provide in response to each field in the Tax Return in the order in which they normally appear. However, this guide does not provide detailed technical guidance on implementing corporate tax laws.

This guide should be read by any Person required to file a Tax Return for a relevant Tax Period. This guide provides a detailed analysis of the different schedules contained under the Tax Return. It allows a Taxable Person to report their Taxable Income, including any relevant adjustments, such as exemptions and reliefs claimed. The parts of the Tax Return include:

• Part A – Taxable Person information
• Part B – Elections
• Part C – Accounting Schedule
• Part D – Accounting Adjustments and Exempt Income
• Part E – Reliefs
• Part F – Other Adjustments
• Part G – Tax Liability and Tax Credits
• Part H – Review and Declaration
• Part I – Schedules

Source: Corporate Tax Guide on Tax Return

2. UAE offers grace period to taxpayers for updating tax registration information

The Federal Tax Authority (FTA) announced that a new Decision has been issued to support businesses in efficiently meeting their tax obligations, offering a grace period for tax registrants who have fallen behind on updating their tax records for the period from 1 January 2024 until 31 March 2025. The initiative allows violators to make the necessary adjustments and avoid incurring the administrative penalties associated with failure to inform the FTA of any cases that require modifying their tax records.

The Decision on granting a grace period for administrative penalties for registrants who have failed to update their tax record information was issued by the Cabinet; it stipulates that in the event that penalties were imposed on registrants for failing to update their records in time and the registrants in questions already paid said penalties in the period from 1 January 2024 until the deadline set for the grace period, then the penalties will be refunded.

The initiative aims to encourage registrants to update their tax recordswithin 20 working days of any change in the information registered in the FTA systems. This includes the name, address, email, activity listed in the commercial license, legal form, partnership agreement for joint ventures, and articles of association, along with any changes in the nature of the registrant’s business or address from which they conduct any business activities.

The FTA Director General urged registered taxpayers to take advantage of the benefits the new Decision provides, which reduce the tax burden on business sectors, enhance their contribution to national economic growth, encourage taxpayers to meet their obligations and boost the UAE’s competitiveness in the business sector.

Source: Announcement by Federal Tax Authority

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