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Home | CT | Corporate Tax Return Filling
All businesses that are liable to the UAE corporate tax are expected to submit their tax returns and pay the required taxes on time. Any failure may attract penalties and fines. Corporate tax services by NAK Auditing L.L.C. in the UAE and Dubai involve helping businesses prepare their tax returns and file them in time and directing businesses to pay taxes on time.
In conclusion, NAK Auditing L.L.C. is one of the leading tax consulting companies within the UAE, and in this regard, it is a one-stop shop to all your corporate tax requirements within the UAE and Dubai. Our team of tax consultants who are well experienced in Dubai is dedicated to the utmost service and to ensure that your business does not fall out of compliance with the current tax laws and regulations in the region.
Be it an individual business or a multinational company NAK Auditing L.L.C. is among the leading providers of business set up in Dubai as well as audit and accounting services in Dubai. You have us as your partner of UAE corporate tax compliance.
Proper filing of corporation tax returns in UAE is known to be fundamental in assisting businesses adhere to the regulations of the Federal Tax Authority (FTA), evade fines, and reduction of taxation. Such services usually involve:
1.Preparation of comprehensive tax returns: The professionals prepare comprehensive tax returns by determining taxable income, using relevant deductions and exemptions, and ensuring that all income and expenses have been properly recorded as per the UAE corporate tax law.
2.Document Checking and filing: Professionals make sure that all the necessary papers like trade licenses, financial statements, MOA, and other relevant receipts are checked and returned through the Emara Tax portal without errors and omissions.
3.Timely Filing and Payment: Not only filing returns before the required time (typically 9 months of the financial year over) but also helping with the payment of any corporate tax payable, so as to avoid penalties.
4.Free Zone Entities and Exemptions Support: Although free zone companies and exempt entities are not required to submit their returns, the experts help them with how to comply without paying taxes unnecessarily.
5.Continued Compliance and Audit Readiness: Keeping records and training the company in case of FTA audits and doing so accurately and transparently.
Timely corporate tax return filing in the UAE is crucial for several reasons:
1.Evading penalties and fines: Failure to file tax returns on time will attract a penalty beginning with AED 10,000 with fines added on non-compliance. Early filings will make businesses escape such expensive fines.
2.Regulatory Compliance: Filing on time will keep the company in line with the Federal Tax Authority (FTA) rules, with no threat to its legal position and approval of business licenses.
3.Financial Planning and Cash flow Management: Filing in time will ensure proper evaluation of the tax liabilities assisting businesses to manage the cash flow well and prevent unnecessary financial strains.
4.Audit Preparedness: Keeping up with filings implies that the business has updated records and documentation and makes the process less stressful and complicated in the event of the FTA audit or investigation.
5.Corporate Image and Reliability: Adhering to taxation deadlines is a good reputation among investors, financial organizations and business associates, which instils trust and a chance to develop further.
Therefore, the filing of corporate tax returns is a critical issue in that the corporate tax system in the UAE implies legal, financial, and operational stability.
To prepare corporate tax returns correctly in the UAE, a company is to collect and provide a number of important documents that would prove its income, expenditures and adherence to the requirements of the Federal Tax Authority (FTA):
1.Trade License and Registration Information: Authentic business registration and trade licence documents that verify the legal business operations in UAE.
2.Memorandum or Articles of Association (MOA/AOA): Documents that describe the structure/purposes of business.
3.Copies of Passports and Emirates IDs: Identifications of owners, partners or shareholders.
4.Financial Statements: Audited or prepared by the management, income statements, balance sheet and cash flow statements of the concerned financial year.
5.General Ledger and Bank Statements: Extensive documents of all transactions of money and of the transactions of bank accounts.
6.Revenue and Expense Records: Invoices, contracts, payroll record and receipts of revenue and deductible expenses.
7.Fixed Asset Register and Depreciation Schedules: The company information on owned assets and depreciation that the company charges on tax.
8.VAT Records (when necessary): VAT returns, history of payments, Tax registration number (TRN).
9.Transfer Pricing Documentation (where necessary): Reporting and disclosure forms concerning related-party and cross-border transactions.
10.Corporate Tax Registration Certificate: This is issued by the FTA and it acknowledges the registration and corporate tax number of the company.
11.Supporting Schedules: Breakdown of non-deductible expense, exempt, deferred tax, or carry over losses.
It is required that these documents be kept at least seven years to be in compliance with the law of taxation of the UAE, as well as assist in any audit or inquiry by FTA. Proper documentation will not only guarantee proper calculation of the taxes but also minimize the chances of fines or penalties because some of the information is not filled or filled inaccurately.
To prevent fines and minimize the risk of submitting a corporate tax return in the UAE, it is necessary to follow the rules and practice:
1.Timely Filing and Payment:
⇒ File corporate tax returns within 9 months of financial year.
⇒ Pay any outstanding tax and avoid penalties beginning with AED 10,000 in case of late filing and other fines imposed on arrears.
2.Correct and detailed Financial Records:
⇒ Make certain that all financial statements, invoices, receipts and other supporting documents are correct and in full.
⇒ Keep good records at least 7 years to help in any FTA audits or investigations.
3.Tax Obligations and Understanding:
⇒ Get conversant with the new corporate tax laws, rates, exemptions, as well as demands.
⇒ Do not misreport whereby you should consult professionals to enable you to compute the taxable income, deductible expenses and exemptions.
4.Professional Support:
⇒ Hire professional tax consultants or registered agents to do the registration, filing returns, and other compliance.
⇒ The professionals aid in avoiding mistakes, maintaining regulatory compliance and addressing complex tax situations.
5.Regular Compliance Review:
⇒Carry out periodic internal audit and review of tax related documents and filings.
⇒ Fix any anomalies at the earliest before FTA audits.
6.Transfer Pricing and Group Compliance:
⇒ Keep and record transfer pricing documentation where necessary.
⇒ Meet group filing requirements in case the business is run under corporate groups.
7.Keep Up with FTA Updates:
⇒ Keep track of updated and clarified information by the FTA to maintain compliance.
⇒ Modify tax planning and tax reporting.
Auditing the corporate taxation of the UAE and providing post-filing services and audit support in the context of corporate tax returns filing are crucial services that assist businesses in ensuring that all aspects of the process are being regulated and a successful control over the control by the Federal Tax Authority (FTA):
⇒Post-Filing Assistance:
1.Review and Confirmation: Making sure that the tax returns that have been filed have been received by the FTA and correcting any differences or questions that have been raised.
2.Tax Paying Guidance: Helping to settle the outstanding tax payment without incurring penalties or interest.
3.Compliance Monitoring: Providing continuing assistance to ensure adequate records and preparation of subsequent tax years and submissions.
4.Processing Amendments: Assisting businesses to file an amendment or a correction in case any mistakes or alterations were detected after submitting the returns.
⇒Audit Support:
1.Audit Preparation: Organizing all documentation to make a complete presentation of an audit trail by preparing all the relevant documents like financial statements, invoices, bank statements, tax filing records etc.
2.Clarifications and Representation: The individual must serve as the liaison between the company and FTA in the course of audits to address questions, give necessary documents, and represent a specific business.
3.Risk Assessment and Mitigation: To estimate the potential risks to the audit and prescribe remedial actions in order to prevent penalties or fines.
Here are some common questions about CT Return Filing
⇒Mainland corporations paying corporate tax on taxable income in excess of AED 375, 000.
⇒ Even though the 0% tax rates apply to free zone companies, they have to register and submit returns.
⇒ Branches of foreign firms permanently established in UAE.
⇒ Freelancers or sole-proprietors whose net income is more than AED 375,000 per year.
⇒ There are exceptions in the form of certain entities e.g. government bodies and certain specified investment entities that must be registered and disclose their status.
The returns of corporate taxes are supposed to be filled in annually within nine months of the financial year of the company.
Register on their portal EmaraTax with the Federal Tax Authority (FTA). All the entities subject to the corporate tax regime should be registered prior to filing.
→Trade license and Corporate Tax registration Certificate.
→Trial balance and audited financial statements.
→Bank statements and profit and loss statement.
→Details of related party transactions.
→VAT returns, if applicable
Other pertinent sources such as lease agreements, board resolutions and economic substance reports where necessary.
First late filing fine of AED 500/month, but after 12 months, it raised.
Interest at the rate of 14 percent per annum on any unpaid corporate tax.
Additional fines and penalties can be introduced by the FTA.
Risk of audit and reputation.
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