On Sunday, the Federal Tax Authority (FTA) stressed the crucial need for early preparation and timely submission of Corporate Tax Returns and payments within each Tax Period’s specified deadlines to avoid late payment penalties and non-compliance fines.
The FTA emphasized that all entities liable for Corporate Tax, including Exempt Persons required to register, must file their Tax Returns (or annual declarations for Exempt Persons) and settle any Corporate Tax due within nine months from the end of their Tax Period or financial year for registered Exempt Persons.
The FTA clarified that delaying a Tax Return submission or Corporate Tax payment will incur an AED 500 monthly penalty for the first twelve months, increasing to AED 1,000 monthly from the thirteenth month.
Tax Returns can be filed by the Taxable Person themselves or an authorized representative, such as a registered tax agent or legal representative. However, providing inaccurate information or failing to meet administrative requirements could lead to penalties under the Tax Procedures Law and Corporate Tax Law.
The FTA announced that Corporate Tax registration can be done through the EmaraTax digital platform, part of their digital transformation strategy to facilitate voluntary tax compliance and offer accessible taxpayer services.
The EmaraTax platform is continuously enhanced, allowing users to complete various tax procedures, including Corporate Tax registration and filing, 24/7 with ease and transparency.
The FTA underscored the necessity of filing Tax Returns within the legislatively specified deadlines. Businesses registered for Corporate Tax must submit periodic Tax Returns and settle any due taxes accordingly.
The Authority is committed to promoting accurate, timely Tax Return filings by offering a reasonable timeframe to help Taxable Persons fulfill their obligations. The FTA has organized multiple awareness campaigns across the UAE to educate Taxable Persons on Corporate Tax, registration, filing, and payment procedures.
FTA representatives actively engage with Taxable Persons to gather feedback and address any challenges, ensuring the smooth implementation of the Corporate Tax Law without disrupting business operations.
The FTA urged all Taxable Persons to review the Corporate Tax Law and related legislation, including Cabinet, Ministerial, and FTA Decisions, guides, and clarifications, all available on the FTA’s official website: https://tax.gov.ae/en/default.aspx.
