A tax return is filed by the taxable person for a particular tax period with the compliance of corporate tax payment and liability. A tax return is also known as UAE Corporate tax return which is to be filed within a certain period of time with the Federal Tax Authority as per the UAE corporate tax Law.
Federal Tax Authority can also ask the taxable business to submit a financial statement that relates to its financial performance and business activities. If the taxable business is having any doubts, it can get clarification from the Federal Tax Authority. FTA has also released a ‘User Guide’ which provides manner, form, and mechanism in which a person can also get private clarification.
Tax Return To Be Filed Under The Corporate Tax Law In UAE
A tax return is filed with the Federal Tax Authority that contains details about the income of a person in a year and the applicable tax to be paid. According to the UAE corporate tax law, Tax returns are to be filed for the relevant tax period and it is to be filed even if the business is suffering from losses. Businesses need to file the UAE corporate tax return electronically with the FTA.
The tax return needs to be filed within nine months from the end of the relevant Tax Period. FTA may specify any other date as well for the UAE corporate tax return. UAE corporate tax returns must be filed according to the specified date by the Authority. The Tax return is needed to b filed by the parent company for a tax group.
Required Information For Tax Return Filing
The tax return needs to include the following information about the taxpayer:
- The relevant tax period.
- Tax registration number of the taxable person.
- The date of submission of the tax return.
- The address and name of the taxable return.
- The taxable income calculations for the relevant tax period.
- The accounting basis applied in the preparation of the financial statements.
- The amount of tax loss transferred by the taxpayer.
- The amount of the tax loss relief claimed by the taxpayer.
- Tax credit claimed by the taxpayer.
If any other additional documents are required by the authority, then it is to be provided by the taxpayer to the FTA.
Exemption To Manner And Form Of Filing Of UAE Corporate Tax Return.
The federal tax authority prescribes the manner and form in which every business will file Tax Return. According to article 53(4) of the UAE corporate tax law, the Minister also prescribes the manner in which such tax returns should be filed with the Authority. Sometimes, in some cases, the disclosure of a Tax Return may cause an impediment to the public interest or the national security of the state.
These people might need to submit a declaration along with their UAE Corporate Tax Return on request from the authority.
- Qualifying Investment Fund
- Social Security Fun, Public Pension
- Qualifying Public Benefit Entity
- A jurisdiction person that is controlled or owned by a certain Exempt Person
- Any person ascertained by the Cabinet, on the suggestion by the Minister.
Financial Statements To Be Submitted Under The UAE Corporate Tax Law
Financial statements of a corporate entity depict the financial position and performance of the company. It consists of balance sheets, income statements, and cash flow statements. Financial statements are to be prepared as per International Financial Reporting Standards or IRFS.
The Taxable person may be requested by the Federal Tax Authority to submit the Financial Statement. The request by the Authority can be sent through a notice or decision issued by it and the financial statement is to provide in the form within the time period given.
A partner of an Unincorporated Partnership can be requested to provide extra details such as:
- Total assets, expenditure, liabilities, and income of the Unincorporated partnership.
- The distributive share of each of the partners in an Unincorporated partnership.
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