Simplify your UAE corporate tax filing with Al Hammamy, where compliance meets expertise.
What is the UAE Corporate Tax System?
The UAE Corporate Tax (CT) regime applies to all “Taxable Persons,” including:
- Locally incorporated companies
- Branches of foreign companies
- Free Zone entities
- Individuals conducting business activities with annual income exceeding AED 1 million
Tax returns are submitted through the EmaraTax Portal, either directly by the business or via an authorized tax agent such as Al Hammami.
To ensure accurate and penalty-free filing, businesses must meet three key requirements:
1) Corporate Tax Registration
All taxable entities must register with the FTA and obtain a Tax Registration Number (TRN).
2) Financial Statements Preparation
Businesses must prepare standalone financial statements in accordance with recognized accounting standards such as IFRS.
3) Taxable Income Calculation
Taxable income is calculated based on accounting profit, adjusted for:
- Exempt income
- Allowable deductions
- Non-deductible expenses
Al Hammami assists businesses in performing these calculations accurately and in compliance with the law.
Who Must File a Tax Return in the UAE?
The obligation to file applies to:
Natural Persons (Sole Proprietors)
Must disclose:
- Turnover from UAE activities
- Accounting method (cash or accrual)
- Residency status for tax purposes
Juridical Persons (Companies)
Must report:
- Group affiliations
- Permanent establishments
- Income sources
- Financial reporting practices
Free Zone Entities
Must confirm:
- Registration status
- Eligibility for preferential tax rates
- Compliance with qualifying criteria
Some government and public benefit entities are exempt but must still file an annual declaration confirming eligibility.
Why Choose Al Hamamy for Tax Return Services?
With Al Hammami, your corporate tax compliance is handled with expertise, accuracy, and complete peace of mind.
- Expert tax consultants
- Full compliance with UAE laws
- Accurate financial reporting
- Seamless FTA submission
- Penalty risk reduction
- Ongoing tax advisory support
Frequently Asked Questions
What type of tax returns are applicable to individuals in the UAE?
Individuals in the UAE are generally not subject to personal income tax and therefore are not required to file personal tax returns. However, individuals conducting business activities with annual income exceeding AED 1 million may fall under the corporate tax regime and must comply accordingly.
Do individuals need to file tax returns in the UAE?
No, individuals who are not engaged in taxable business activities do not need to file tax returns in the UAE. Only individuals operating as sole proprietors or business owners with taxable income above the threshold are required to file.
What happens if I miss the tax return deadline?
Missing the deadline may result in administrative penalties imposed by the Federal Tax Authority (FTA), including monthly fines for late filing and additional penalties for late payment of tax dues.
How are VAT returns filed in the UAE?
VAT returns are filed electronically through the FTA portal (EmaraTax). Registered businesses must submit periodic VAT returns (usually quarterly or monthly) and pay any VAT due within the prescribed deadlines.
