With the September 30, 2025 deadline approaching for UAE corporate tax returns (for the period ending December 31, 2024), businesses should start preparing now to avoid last-minute stress.
Who Must File?
Every registered company must submit a corporate tax return, even if there was no business activity or profit. Income below AED 375,000 does not exempt a company from filing.
Small Business Relief (SBR)
Businesses with annual revenue under AED 3 million can claim SBR, paying no corporate tax, regardless of profits. SBR also offers a simplified two-section tax return instead of the standard eight-section form.
Audited Financial Statements
Mandatory only if:
- Revenue exceeds AED 50 million, or
- The company seeks the 0% tax rate.
For all other companies (except SBR), financial statements must still accompany the return.
Transfer Pricing Requirements
A full transfer pricing report isn’t required unless thresholds are exceeded. Only a Transfer Pricing Disclosure Form (TPDF) is needed, detailing related-party transactions and benchmarking methods.
Key Tips for Filing
- Carefully review elections and tax relief options
- Separate taxable and exempt income
- Consider additional requirements for free zone companies, corporate tax groups, and UAE branches of foreign companies
Penalties for Late Filing
- AED 500 per month, rising to AED 1,000 after 12 months
- 14% per annum on unpaid tax liabilities
Start early to ensure compliance, optimize tax positions, and avoid penalties.
