CT Return Filing in the UAE: Things to Know About CT Return Filing in the UAE
With the introduction of Corporate Tax (CT) in the UAE, all businesses — including those in Dubai Mainland, JAFZA, SAIF Zone, Dubai South (DWC), Sharjah, and even international companies (MNCs) with UAE operations — must ensure compliance with the UAE Corporate Tax Law.
Filing the CT return is a mandatory requirement for most entities, regardless of size or sector. Whether you're a free zone company, mainland LLC, branch of a foreign company, or a sole establishment, understanding the corporate tax return process is crucial to avoid fines and maintain compliance with the Federal Tax Authority (FTA).
Here's a Breakdown of the most Important Things to know when it comes to CT Return Filing in the UAE.
1. What is Corporate Tax (CT)?
Corporate Tax in the UAE is a direct tax on the net income or profit of corporations and other businesses. It came into effect from 1 June 2023, with a standard rate of 9% for taxable income exceeding AED 375,000. Income below this threshold is taxed at 0%, which is designed to support the taxpayers, including small businesses and startups.
Under the law, there are some special provisions providing tax benefits for small businesses or free zone persons, or individuals.
- Small businesses under the small business relief scheme
- Free Zone Persons with qualifying income
- Individuals with business licenses
2. Who Needs to File a CT Return?
For an easy understanding,g we can say that CT return filing is required for all the businesses in the UAE unless specifically exempted under any provisions. It is very important to note that the CT return filing is applicable for legal entities even if there is no operative income during that financial year.
The following entities are generally required to file a corporate tax return in the UAE:
- Mainland companies (Dubai, Sharjah, Abu Dhabi, etc.)
- Free zone entities (JAFZA, SAIF Zone, DAFZA, DWC, etc.)
- Branches of foreign companies
- Foreign entities that have a permanent establishment in the UAE
- Individuals conducting business in the UAE (under a commercial license)
- Partnerships (depending on structure)
Exempt Persons, such as government entities and certain investment funds, may not need to file, but this depends on their status and approval from the Federal Tax Authority (FTA).
3. What is the Deadline for Filing?
The CT return must be filed within 9 months after the end of the relevant financial year. For example:
- If your financial year ends on 31 December 2024, the CT return must be filed by 30 September 2025.
- If your financial year ends on 31 March 2025, the return is due by 31 December 2025.
4. How to File the CT Return?
CT returns are filed electronically through the FTA’s EmaraTax platform. Steps include:
- Register for corporate tax (if not already done).
- Log in to the EmaraTax portal.
- Complete the CT return form using financial statements.
- Declare the taxable income, deductions, and credits.
- Submit the return and pay any tax due before the deadline.
- Payment of the tax due shall be made either using GIBAN or card payment.
5. What Documents are Needed?
Maintaining proper documentation is important for corporate tax compliance, which will include legal documents of the business, books of accounts, supporting invoices, credit notes, contracts or agreements, approval or control documents, audited financial statements or Transfer pricing documents, etc.
While the CT return is being prepared, the following supporting documents will be required to be provided by the taxpayer:
- Audited financial statements (mandatory for some)
- In-house financials (where audit is not required)
- Supporting schedules for adjustments and deductions
- Transfer pricing documentation (if applicable)
- Proof of tax credits (if claiming foreign tax paid)
- Other business-specific records (as required by FTA)
- Free zone companies (like in JAFZA, SAIF Zone, DWC), aiming to claim 0% tax, must also maintain adequate substance documents.
6. Are Audited Financials Mandatory?
Yes — for businesses with revenue exceeding AED 50 million annually or for qualifying free zone persons (QFZP), audited financial statements are mandatory. Others may submit unaudited but properly prepared financials, though it's still recommended to maintain accurate accounting records.
The entities having revenue less than AED 3 million are allowed to maintain the accounting on a cash basis, but others must maintain the accrual method of accounting. IFRS is also mandatorily applicable for businesses having a turnover of more than AED 50 million, and IFRS for SME for entities having a turnover between AED 3 million and AED 50 million.
From the compliance, administrative, and control perspective, it is important for the business to maintain proper books of accounts either in-house with an accountant or outsourced to an accounting firm. Apart from the mandatory rules for Audited financial statements, it is always advisable for the business to get the financial statements audited, as it will ensure a true and fair view of the financial position and will support in preparing proper tax returns.
7. Transfer Pricing Rules Apply
Transfer Pricing is mandatory for the business in the UAE when you have any related party or connected person transaction because, as per the law, all such transactions must be at Arm’s Length Price. To comply with the Arm’s Length Price, businesses must conduct a benchmarking study to determine the price.
If your business is part of a multinational group with group revenue more than Euro 750 million or entities opting as qa qualifying freezone person in the UAE, then you must comply with transfer pricing rules, including maintaining documentation like:
- Local file
- Master file
- Transfer Pricing Disclosure Form (part of CT return)
You will be required to make a TP disclosure on the CT return
9. Free Zones are Not Automatically Exempt
Although free zone companies (like JAFZA, SAIF Zone, DWC) may benefit from a 0% corporate tax rate, this is not automatic. Free zone entities which need to benefit from the 0% tax rate must maintain adequate substance, comply with Transfer pricing regulations, and meet other conditions set by the law.
To qualify, they must:
- Maintain adequate economic substance in the free zone
- Earn only qualifying income
- Meet other conditions outlined by the UAE CT law
10. CT Filing for Multinational Corporations in the UAE
International businesses and MNCs with UAE branches or subsidiaries, or PE must:
- File UAE CT returns
- Comply with Transfer Pricing, foreign tax credits, and withholding tax (if applicable)
- Consider Double Tax Treaties (DTTs) between the UAE and home countries
- Structure operations to benefit from tax-efficient locations like JAFZA or DWC
The UAE’s corporate tax regime represents a significant shift in its fiscal policy landscape. While the 9% tax rate remains competitive globally, businesses must ensure they comply with all reporting, documentation, and filing requirements to avoid penalties and build trust with regulators.
If you're preparing for your first CT filing, now is the time to organize your financials, understand your obligations, and consult professionals where necessary.
Need Help Preparing Your UAE Tax Return?
Whether you're operating in Dubai Mainland, JAFZA, SAIF Zone, Sharjah, or you're an international company with UAE operations, our tax experts can assist with. Contact us today for a consultation or to get started on your Corporate Tax return filing in the UAE.
Call for Consultation
Pradeep Sai | Co-Founder & Managing Partner
M: +971 55 653 0001
E: Pradeep.Sai@claemirates.com
