| Image Credits: Glass Curtain Wall II Burj Khalifa

On October 3, 2022, the United Arab Emirates issued Federal Decree-Law No. 47 of 2022, known as the Corporate Tax Law. This law, which appeared in Issue #737 of the UAE Official Gazette on October 10, 2022, introduces a federal tax on business profits, establishing the legislative framework for corporate taxation in the UAE. The law’s provisions apply to tax periods beginning on or after June 1, 2023.

To assist taxpayers with compliance, the UAE Corporate Tax Guide was published on November 11, 2024. This guide provides a step-by-step approach to completing and filing Corporate Tax Returns, offering an overview of the information required for each section and field of the return. However, it does not provide detailed technical guidance for the full implementation of the Corporate Tax Law; for this, businesses are advised to consult additional, topic-specific guides available from the Federal Tax Authority (FTA).

PURPOSE AND INTENDED AUDIENCE

The Corporate Tax Guide is designed to help individuals and entities required to file a tax return for a relevant period. Users are encouraged to ensure that their account details in EmaraTax, such as their “Taxable Person” classification, are accurate, as not all fields in the guide will appear in every tax return.

KEY CONTENTS OF THE GUIDE

The guide includes the following major sections:

• Tax Return Overview: Summarizes the fields and information needed, including details relevant to taxable persons, free zones, and tax groups.

• Tax Calculation and Adjustments: Covers tax computation, accounting adjustments, exemptions, and additional documents required for submission.

• Schedules and Exemptions: Provides explanations for required schedules related to foreign permanent establishments, free zone income, and related-party transactions.

Each section includes instructions on completing relevant fields. If a field is absent from the return, users should check their EmaraTax account settings to ensure proper classification and data accuracy.

The UAE Corporate Tax Guide is a general instructional document and is not legally binding. It is meant to assist in tax return preparation rather than to serve as definitive legal or tax advice. The guide is based on legislation as of the publication date and is subject to updates.

For technical support, users may refer to the EmaraTax Tax Return User Manual and other resources provided by the FTA.

Please refer to official UAE authorities’ communications for the most accurate and up-to-date information on tax-related matters. 

SOURCE / RECOMMENDED READ:

• FTA