The Federal Tax Authority (FTA) has issued Decision No. 7 of 2024, introducing a vital extension for filing Corporate Tax Returns and settling Corporate Tax Payable for specific taxpayers. For businesses incorporated, established, and recognized on or after 1st June 2023, with the tax period ended on or before 29th February, the new Corporate Tax Return and payable deadline is 31st December 2024.
Corporate Tax Filing: Penalties for Non-Compliance
Failing to meet the filing deadline can lead to severe financial consequences for your business. Understanding the penalties associated with non-compliance is essential:
- Non-filing Penalty: Businesses that fail to submit their tax returns on time will incur a penalty of AED 500 per month for the first 12 months. After this period, the penalty increases to AED 1,000 per month. This cumulative effect can lead to significant financial burdens over time.
- Failure to Settle Payable Tax: In addition to filing penalties, any outstanding tax amounts will attract a 14% annual penalty, which is calculated monthly. This penalty applies to the total payable tax that remains unsettled after the deadline, further compounding the financial implications for non-compliant businesses.
Preparing for Your Corporate Tax Filing
As the deadline approaches, it becomes increasingly important for businesses to ensure they are fully prepared for their corporate tax filing. Here are several strategies to help you get ready:
- Gather Your Financial Documents: Start by collecting all necessary financial statements, invoices, receipts, and other relevant documentation. Having these organized and ready for review will streamline the filing process and help ensure accuracy in your tax return.
- Review Tax Regulations: The corporate tax landscape is dynamic, with regulations subject to change. It’s essential to stay informed about any updates or modifications to corporate tax regulations that may impact your filing. Regularly reviewing official communications from the UAE government and tax authorities can help you stay ahead.
Even though the deadline may seem far off, preparing for your corporate tax filing is paramount. This is not just a compliance exercise; it’s an opportunity to ensure that your business is aligned with the new tax regulations and to avoid the financial penalties associated with late submissions. Prioritizing your corporate tax filing preparation will not only protect your business interests but also set a solid foundation for your organization’s future growth and success in the evolving economic environment.
Corporate Tax Filing: How MS can help
Our company offers end-to-end support for corporate tax filing, ensuring businesses meet their tax obligations with ease and precision. We start by assessing each client’s tax requirements, organizing financial documents, and identifying the appropriate tax period. Our expert team calculates tax liabilities accurately and handles the entire filing process, ensuring compliance with UAE regulations. We stay updated on any changes in tax laws and provide strategic tax planning to help clients reduce liabilities. Additionally, we manage filing deadlines, offering timely reminders, and post-filing support to address penalties or disputes.