The introduction of Corporate Tax in the UAE has made corporate tax return filing and payment a critical annual compliance obligation for businesses operating in the country. With the issuance of the New Tax Procedures Executive Regulation, official FTA guides, and targeted deadline reliefs for early tax periods, companies must ensure accuracy, timeliness, and procedural compliance to avoid penalties.

This comprehensive guide explains how to file and pay corporate tax returns in the UAE, drawing from the latest Federal Tax Authority (FTA) regulations and public clarifications, including CTGTXR1 (Corporate Tax Returns Guide), CTP003 (First Tax Period of a Juridical Person), and CTP004 (Postponement of Filing Deadlines).

Understanding Corporate Tax Returns in the UAE

A Corporate Tax Return is a mandatory declaration submitted to the Federal Tax Authority that reports a juridical person’s taxable income, accounting adjustments, exemptions, and final corporate tax payable for a specific tax period, as defined under UAE Corporate Tax Law and detailed in CTGTXR1.

Who Is Required to File a Corporate Tax Return?

Corporate tax return filing is mandatory for:

• UAE mainland companies
• Free zone entities (including those claiming Qualifying Free Zone Person status)
• Branches of foreign companies
• Any juridical person classified as a Taxable Person under UAE Corporate Tax Law

Even entities with nil tax liability or those benefiting from exemptions are required to file a return, unless explicitly exempted by the FTA under procedural clarifications.

Note: Exempt entities such as certain qualifying investment funds may not need to file, unless the FTA specifically requires a submission.

Corporate Tax Period & First Tax Period (CTP003)

Determining the Tax Period

In the UAE, the corporate tax period generally aligns with the entity’s financial year as reflected in its audited or unaudited financial statements.

However, determining the first tax period requires special attention.

First Tax Period of a Juridical Person: Key Highlights (CTP003)

According to Public Clarification CTP003:

• The first tax period may be shorter or longer than 12 months
• The permitted duration typically ranges between 6 to 18 months (periods exceeding 18 months require explicit FTA approval)
• This flexibility allows alignment with financial reporting cycles and incorporation dates.

Correct identification of the first tax period is crucial, as it directly affects:

• Corporate tax return filing deadlines
• Corporate tax payment timelines
• Eligibility for deadline postponements under CTP004

Incorrect classification may result in late filing penalties, loss of reliefs, or audit issues.

Filing Deadline & Payment Timeline for Corporate Tax

Standard Filing & Payment Rule

As per UAE Corporate Tax Law and the New Tax Procedures Executive Regulation:

• Corporate tax returns must be filed within 9 months from the end of the relevant tax period
• The corporate tax payable must be settled within the same 9-month window

Example:

If a company’s financial year ends on 31 December 2024, the tax return filing and payment deadline would be 30 September 2025.

Postponement of Filing & Payment Deadlines (CTP004)

Recognising early-stage compliance challenges, the FTA issued CTP004, providing targeted deadline relief for qualifying taxpayers.

Who Was Eligible Under CTP004?

• Juridical persons incorporated on or after 1 June 2023
• Tax periods ending on or before 29 February 2024
• Subject to meeting specific conditions outlined by the FTA

For eligible taxpayers:

• The deadline to file the corporate tax return and pay tax payable was postponed to a later prescribed date

Important:

This postponement was not automatic and applied only to qualifying cases.

Businesses must independently verify eligibility with the official FTA announcement, rather than assume an extension.

Corporate Tax Return Structure (CTGTXR1 Guide)

The Corporate Tax Returns Guide (CTGTXR1) issued by the FTA provides detailed instructions on completing and submitting returns electronically via the FTA portal.

Key Components of a UAE Corporate Tax Return

• Taxable income reconciliation
• Accounting profit to tax adjustments
• Exempt income disclosures (including QFZP exemptions)
• Related-party and transfer pricing schedules
• Foreign tax credit computation
• Tax group disclosures (where applicable)

All returns must be submitted electronically, supported by accurate financial data, documentation, and record-keeping consistent with the New Tax Procedures Executive Regulation.

Payment of Corporate Tax in the UAE

How to Pay Corporate Tax

• Corporate tax payments are made through FTA-approved electronic payment channels
• Businesses should ensure sufficient funds and proper banking arrangements well before the deadline

Late Payment Consequences

Failure to file or pay corporate tax on time may result in:

• Administrative penalties
• Late payment interest
• Increased scrutiny from the FTA

While the FTA has granted limited reliefs in early phases, penalty waivers are exceptions, not the norm.

Impact of the New Tax Procedures Executive Regulation

The issuance of the New Tax Procedures Executive Regulation significantly strengthened procedural compliance requirements.

What This Means for Businesses

• Enhanced record-keeping and documentation standards
• Clear rules on authorised signatories and tax agents
• Expanded FTA audit and assessment powers
• Defined timelines for objections and clarifications

Businesses must maintain supporting evidence for:

• Deductions and adjustments
• Related-party transactions
• Transfer pricing positions
• Foreign tax credit claims

Common Corporate Tax Filing Mistakes to Avoid

• Incorrect identification of the first tax period
• Assuming deadline extensions apply automatically
• Inadequate transfer pricing documentation
• Misreporting exempt or free zone income
• Late registration of authorised signatories

Proactive planning and professional review significantly reduce compliance risks.

How German Fintax Consultancy Supports UAE Businesses

At German Fintax Consultancy, we provide end-to-end UAE corporate tax compliance services, including:

• Determination of tax periods and first tax year analysis
• Corporate tax return preparation and filing
• Corporate tax payment planning and deadline monitoring
• Review of CTGTXR1 schedules and disclosures
• Advisory on deadline reliefs and procedural compliance
• Representation before the Federal Tax Authority

Our approach ensures your business remains fully compliant, audit-ready, and penalty-free.

Frequently Asked Questions (FAQs)

Is corporate tax return filing mandatory even if no tax is payable?
Yes, filing is mandatory even if taxable income is below the threshold or fully exempt.

Can filing deadlines be extended?
Extensions are rare and only granted through formal FTA decisions such as CTP004. Businesses must check official FTA announcements for eligibility.

Do free zone companies need to file corporate tax returns?
Yes, free zone entities must file returns, even if claiming Qualifying Free Zone Person status.