The UAE Federal Tax Authority (FTA) released a new Corporate Tax Guide on Tax Returns—CTGTXR1—on 12 November 2024, providing general guidance on filing and completing a return.
This guide should be read by anyone required to file a tax return for a relevant tax period. It should be read in conjunction with the corporate tax law, the implementing decisions, and other relevant guidance published by the FTA.
Overview of a tax return
A Taxable Person is required to submit a Tax Return and pay any Corporate Tax due to the FTA within 9 months of the end of its Tax Period. This is a self-assessment process. A tax return must be submitted by a taxable person or another person with the right to do so on behalf of the taxable person. This includes a tax agent or a legal representative.
In the case of an unincorporated partnership treated as a separate taxable person, the appointed responsible partner must file the tax return on behalf of the unincorporated partnership.
A tax return comprises several parts. It allows a Taxable Person to report their taxable income, including any relevant adjustments, such as exemptions and reliefs claimed. The parts of the tax return include:
- Part A – Taxable Person information
- Part B – Elections
- Part C – Accounting Schedule
- Part D – Accounting Adjustments and Exempt Income
- Part E – Reliefs
- Part F – Other Adjustments
- Part G – Tax Liability and Tax Credits
- Part H – Review and Declaration
- Part I – Schedules
The specific tax return schedules include:
- Free Zone Schedules
- UAE Dividends Schedule
- Foreign Permanent Establishment Schedule
- Tax Credit Schedule
- Related Party Transactions and Connected Person Schedules
- Tax Losses Schedules
- Participation Exemption Schedule
- Interest Capping Schedules
- Tax Relief Schedules
- Transitional Rules Schedules
- Other Schedules
Reporting under the transfer pricing schedule
Reporting under the transfer pricing schedule is required when related-party transactions exceed AED 40 million in market value. When this threshold is met, only aggregate transactions over AED 4 million must be disclosed by category. Additionally, transactions with connected persons require reporting only if their aggregate value exceeds AED 500,000. Dividends paid to related parties are excluded from these thresholds.
Exempt persons from corporate tax
Government entities, government-controlled entities, extractive businesses, non-extractive natural resource businesses, and persons engaged in extractive or non-extractive natural resource businesses are exempt from corporate tax. However, if these persons conduct taxable business, they will be a taxable person in so far as it relates to such a taxable business and will need to submit a tax return for that taxable business.
Where a government entity or government-controlled entity is conducting multiple taxable businesses, each taxable business is treated as a separate taxable person. Accordingly, a separate Tax Return must be filed for each taxable Business. However, a government or government-controlled entity may be treated as a single taxable person in respect of all its taxable businesses in which case a single tax return can be filed.
Other exempt persons
Exempt Persons, such as Qualifying Public Benefit Entities, public and private pension or social security funds, Qualifying Investment Funds, and entities wholly owned and controlled by specific Exempt persons, are not required to complete a tax return; instead, they are required to make an annual declaration.
