UAE Corporate Tax: Your Guide to the September 2025 Deadline

For businesses with operations in the UAE, a critical deadline is fast approaching.

The corporate tax return for the financial period ending 31 December 2024 must be submitted by 30 September 2025.

With the deadline now firmly on the horizon, the UAE's Federal Tax Authority (FTA) is encouraging all businesses to prepare and file their returns early. Leaving it to the last minute can lead to costly errors and missed opportunities for tax optimisation.

To help you navigate this process, we have answered some of the most common questions about the UAE corporate tax return.

Is a Tax Return Necessary for a Dormant or Unprofitable Business?

Yes, absolutely. A common misconception is that if a business had no activity or did not make a profit, it does not need to file a return. This is incorrect. Every business registered for UAE Corporate Tax must file a return by the deadline, regardless of its financial performance.

Similarly, the rule that taxable income up to Dh375,000 is subject to a 0% tax rate does not mean you are exempt from filing. A tax return is still mandatory even if your profits fall below this threshold.

Could Your Business Benefit from Small Business Relief?

For many smaller enterprises, Small Business Relief (SBR) is a significant advantage. If your business's annual revenue is Dh3 million or less, you may be eligible to claim it.

Opting for SBR has two major benefits. Firstly, it means you have no corporate tax to pay, even on substantial profits.

Secondly, it allows you to use a much simpler, streamlined tax return. It is vital to calculate your revenue correctly and make a strategic decision on whether to claim this relief based on your circumstances and future plans.

Audited Financials: Are They Compulsory?

The need for fully audited financial statements depends on your business's scale and status. A formal audit is only mandatory if your annual revenue surpasses Dh50 million. It is also a requirement if you are a Qualifying Free Zone Person seeking to benefit from the 0% corporate tax rate.

However, for most businesses that are not claiming Small Business Relief, submitting your standard financial statements with the tax return is a requirement.

What are the Transfer Pricing Obligations?

Transfer pricing rules govern the transactions made between connected or related parties. While you are not required to submit a full, detailed transfer pricing report with your tax return, you may need to complete and attach a Transfer Pricing Disclosure Form.

This form provides the FTA with an overview of the nature and value of your related party transactions and confirms the methods used to ensure they were conducted at a fair market value.

The Cost of Non Compliance

The FTA has set clear penalties for failing to meet your obligations. Missing the filing deadline will result in a penalty of Dh500 per month, which increases to Dh1,000 per month after a year of delay. Any late payment of your tax liability incurs an additional penalty calculated at a rate of 14% per annum. These costs can accumulate quickly, making timely and accurate compliance essential.

Partner with Zyla Accountants for a Smooth Filing Process

The UAE corporate tax return is a complex document with several sections requiring strategic input. Some of the elections you make are irreversible and can impact your tax position for years to come.

Don't leave your filing to chance. Proactive preparation is the key to ensuring compliance and optimising your tax strategy.

The expert team at Zyla Accountants is here to provide specialist support for your UAE tax obligations.

We can guide you through every step, ensuring you meet your responsibilities accurately and on time.

Contact Zyla Accountants today for professional support and peace of mind.