UAE Federal Tax Authority postpones deadline to file corporate tax returns
The UAE Corporate Income Tax (CIT) Law stipulates that UAE taxpayers shall file their tax returns within nine (9) months from the end of their relevant tax period.
For taxpayers with a financial year which coincides with the calendar year (i.e., ending 31 December), the deadline for filing the relevant tax returns will be 30 September of the following year.
Recognizing the challenges faced by taxpayers in meeting their CIT obligations, the Federal Tax Authority (FTA) has recently released Decision No. 7 of 2024, whereby the deadline to file the CIT returns for certain taxpayers and tax periods has been extended.
As per the above decision, the deadline to file the relevant CIT returns will now be 31 December 2024, for the following taxpayers:
- Taxable persons incorporated, established or recognised under the UAE applicable legislation on or after 1 June 2023; and
- Taxpayers with a tax period that ended on or prior to 29 February 2024.
Additionally, the FTA has extended the deadline for settling any CIT payable for these taxpayers to 31 December 2024.
This decision underscores the FTA’s commitment to fostering a collaborative environment with taxpayers, ensuring compliance while easing the burden of the CIT process. Whilst this extension provides taxpayers with a much needed relief, it will also allow for any necessary adjustments and preparations to be made on the EmaraTax portal, facilitating a smoother filing process for all parties involved.
Conclusion
Whilst the introduction of CIT in the UAE has definitely lead to additional burden for UAE taxpayers, initiatives such as the one described demonstrate the efforts of the FTA in reducing this burden and easing the process towards implementing CIT and complying with the obligations associated to it.
