What Are the Different Parts of Tax Returns Under UAE Corporate Tax?

Navigating through the intricacies of corporate tax is challenging for companies operating in UAE. Following the implementation of the UAE Corporate Tax (CT) Law, compliance blocks for tax returns necessitate careful assessment. From a compliance and business management perspective, professional assistance becomes critical. Filing the tax returns on time is a major part of the compliance requirements for the businesses. The businesses must facilitate accurate calculation of the returns and appropriate filing of the returns. In this blog, you will explore the key components of the tax returns required under the UAE Corporate Tax.

Highlights of Tax Returns under UAE Corporate Tax

During the filing of the tax returns under thecorporate tax the different parts of the tax returns must be known by the taxpayers in order to accurately file the returns. The details of tax returns include the following:

Taxable Person Data

Some information will be prepopulated in the tax return based on details you provided as a taxable person during UAE corporate tax registration. Other major information is to be included in the taxable returns based on the type of entity, whether it is Natural Person, Juridical Person, Freezone Persons. The type of information and the requirements would vary based on the type of entity. Some of the prefilled data would include the following:

• Legal Name: Full name as incorporated or registered.
• Contact Information: Address, Email and telephone number.
• Business Activity: Simple description of what the entity primarily does in business.
• Financial Year End: Closure date for the taxable person’s financial year.

For Natural Persons: The details might include the turnover values from the activities, the tax residency status, the financial statements preparation basis, etc.

For Juridical Persons: The detail would include the accounting method used, the method used for financial statement preparation, detail regarding the permanent establishment or any income from any nexus in UAE etc

For Freezone Persons: The detail may include the elections regarding the QFZP and details confirming that the compliance requirements to become a QFZP has been met, etc.

Elections

These elections can affect how specific transactions are treated for tax purposes, including elections related to: Transitional rules, small business relief, transfers made within the qualifying group, business restructuring reliefs, foreign permanent establishment, etc. Once the elections are made, the further detail related to such elections must be filled in the tax return.

Accounting Schedule

This part of the return includes the basic details of the audit opinion made and the auditor’s name along with the details regarding the accounting date from the statements. This is included for further disclosure purposes.

Accounting Adjustment And Discount Income

This section is important for incorporating accounting income with taxable income in accordance with the UAE CT law. It includes the additions and deductions of a certain amount from the taxable income. 

Reliefs

This part allows taxable persons to claim various reliefs available under the UAE corporate tax Law, which reduce the overall taxable income. Examples of reliefs include:

• Transfers within the qualifying groups
• Business Restructuring Relief
• Small Business Relief

Other Adjustments

This section acts as a catch oil for any other adjustment that may be necessary to reach the final taxable income, especially if not covered in previous sections. This may include:

• Adjustment related to non-deductible expenditure.
• Adjustment related to interest expenditures.
• Adjustment related to any transactions with related parties.
• Any other such adjustments that are to be made to get the accurate taxable income

Tax Liability and Tax Credit

This is the place where the final corporate tax liability is calculated. It includes:

• Calculation of taxable income: The taxable income would be automatically calculated based on the inputs priorly provided
• Tax credit: Cut any qualified tax credit against the calculated tax liability. 
• Tax Losses: If there are any brought forward losses, along with that, additional details are to be included in the field. It is similar for tax group losses
• Last tax to be paid: The net amount of corporate tax returns due for the period.

Review and Declaration

This last section is crucial to ensure accuracy and perfection of tax returns. This usually entails:

• Summary of main data: A consolidated view of calculated taxable income and tax liability.
• Announcement: A formal statement from the authorized signatory confirms that the information provided in the tax return is perfect, accurate, and completed according to the best knowledge. This often involves confirming that all support documents are used and can be provided on the request.

Schedules

As various schedules are included in the filing of tax returns along with the calculation, once the tax return is completed, the entity would be taken to relevant schedules in order to cross-check and ensure accuracy and to make any changes before the final submission is made. 

CDA - Your CT Assistance in UAE

Filing the corporate tax returns accurately and on time is critical for companies operating within the UAE. There is definitely a lot of detail to navigate through, but it helps reduce a lot of stress if you work with skilled specialists. CDA Accounting and Bookkeeping Services is well-versed in helping companies manage their corporate tax responsibilities, as we have a team of professional chartered accountants and considerable knowledge of tax regulations in the UAE.

 For comprehensive and accurate strategic advice on filing corporate tax returns in UAE, contact CDA.

Mitesh Maithia

Tax Manager

Mitesh is a Tax Professional with expertise in direct, indirect, and international taxation, including transfer pricing, since 2018. Passionate about making complex tax matters simple, he shares insights to help businesses stay compliant and forward-looking.