Tuesday, 02 January 2024 12:17 GMT

Small Businesses In UAE Urged To File Corporate Tax Before Deadline, Says FTA


(MENAFN- Khaleej Times) Small businesses in the UAE are urged to file their corporate tax returns within a specified timeframe, the UAE's Federal Tax Authority reminded on Monday. The authority said that all relevant small business must fulfil all obligations, including registering for corporate tax, submitting simplified tax returns, and maintaining all relevant records and documents.

Small businesses must submit their corporate tax returns within nine months of the end of their respective tax period or financial year. For example, businesses whose financial year ended on December 31, 2025 must submit their tax return no later than September 30 of this year.

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Additionally, businesses that have applied for relief must still file the corporate tax return. Businesses that elect the relief benefit from a simplified tax return, thereby reducing the amount of information required to be submitted.

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The records and supporting documents required for submitting the Corporate Tax return may vary depending on the nature of the taxpayer's business activities. However, certain core records should be maintained, including records of transactions during the tax period, records of assets including details of acquisitions and disposals, records of liabilities, and records of shares or ownership interests held at the end of the tax period.

Importance of preparing early

The authority stressed that taxpayers begin preparing early and gathering all required documents to file for corporate tax returns and making sure that it's paid on time.

“This is a fundamental legal obligation that supports compliance with tax legislation,” the FTA said.“Early preparation also enables taxpayers to meet their obligations efficiently and avoid late-submission penalties and other non-compliance sanctions.”

Small Business Relief

The FTA's Small Business Relief, introduced in 2023, applies to businesses that make less than Dh3 million during current and previous tax periods. In order to demonstrate its eligibility to benefit from the relief, businessowners must provide evidence to the FTA confirming that its revenue has not exceeded the threshold throughout the relevant tax periods.

Director General of the FTA, Abdulaziz Mohammed Al Mulla, said that registration, submission and payments are available 24/7 though the EmaraTax platform. Taxable persons may submit their returns directly through the platform or seek assistance from FTA-approved tax agents, whose details are available on the Authority's website, he added.

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