Assessment, Clarification & Document Requirements for UAE Corporate Tax

The UAE corporate tax will apply to relevant businesses from June 1st 2023. Corporate tax consultants in Dubai advise business owners to have a clear understanding of the various provisions of the corporate tax regime to stay prepared. A better understanding of corporate tax assessment, clarification and document requirements will help you to ensure swift compliance and avoid penalties.

However, you should remember that the final Corporate Tax Law is yet to be released. The basis of the current corporate tax advice is the UAE Corporate Tax Public Consultation Document issued by the Ministry of Finance. There may be revisions and amendments to the current provisions once the government issued the Corporate Tax Law. Corporate tax advisors in Dubai can keep you posted about the issuance of the Law. Meanwhile, read the following blog to know about corporate tax assessment, clarification and document requirements:

How to Carry Out the Uae Corporate Tax Assessment?

The regime of corporate tax in the UAE will be based on a self-assessment principle. It means businesses carry the responsibility of ensuring the tax returns filed and the supporting schedules submitted to the Federal Tax Authority (FTA) are correct, complete and comply with the UAE Corporate Tax Law. It must be noted that the FTA may review the corporate tax returns filed and issue an assessment within the timeframe prescribed in the Tax Procedures Law.

However, taxpayers are allowed to challenge an amended corporate tax assessment issued by the FTA. The process and procedures for challenging the FTA assessment will be outlined in the Tax Procedures Law. Corporate tax consultants in Dubai expect the government will issue the Tax Procedures Law sooner. Businesses are advised to form a final opinion on the assessment only after the issuance of the Law.

Can I Apply for UAE Corporate Tax Clarifications?

Yes. Businesses will be able to apply for corporate tax clarifications. Taxpayers need to have clarity over how to comply with the UAE corporate tax requirements, which is also essential for the smooth functioning of the tax regime. If there is uncertainty over a proposed or entered into arrangement or transaction, businesses can apply for a clarification regarding the correct or intended corporate tax treatment. You may submit the corporate tax clarification requests to the FTA.

However, the clarification will be binding on the FTA, given the facts and circumstances outlined in a clarification continue to apply. Currently, the FTA provides clarification with regards to any uncertainty regarding the Value Added Tax (VAT). Corporate tax consultants in Dubai expect the corporate tax clarification procedures to be in line with the VAT clarification procedures. However, businesses in the UAE must wait for the issuance of the Tax Procedures Law to make any tax-related decision.

What are UAE Corporate Tax Document Requirements?

Businesses will have to maintain financial and other records to comply with UAE corporate tax requirements. You will be required to maintain the documents and records that explain the information contained within the UAE corporate tax return and other documents submitted to the FTA. Corporate tax advisors in Dubai can advise you on the list of documents you are required to maintain.

Should Free Zone Persons Maintain Records?

Free Zone Persons will be within the scope of the UAE Corporate Tax and subject to tax return filing requirements. Hence, businesses operating within the UAE free zones will be required to maintain financial statements and records. Seek the help of corporate tax consultants in Dubai to know further about the documentation requirements. Certain exempted persons will also be required to maintain records to allow the FTA to ascertain the person’s exempt status.

What are the Audit Requirements for Businesses?

Businesses should determine whether their financial statements must be audited by an accredited audit firm based on applicable company laws and regulations. However, free zone persons need to have audited financial statements to benefit from the 0% corporate tax regime. Corporate tax consultants in Dubai can help you with the audited financial statements.

Talk to the Best Corporate Tax Advisors in Dubai, UAE

Corporate tax advisors in Dubai can advise businesses on key tax matters such as assessment, clarification and documentation requirements. The best corporate tax consultants in Dubai such as Jitendra Chartered consultants (JCA) can simplify corporate tax compliance for your business.  JCA offers a wide range of corporate tax services in Dubai including CT Assessment & Advisory Services (one-time or retainer basis), CT Compliance Services & CT Agent Services to Represent to Federal Tax Authority (FTA) of UAE in case of any notices served by FTA. Ensure corporate tax compliance and avoid relevant penalties by using our bespoke tax advisory services.