Filing tax returns and maintaining accurate records are key components of Corporate Tax administration.
This blog will guide you through the process, ensuring your business stays compliant.
Tax Returns and Payments
Corporate Tax is a self-assessed regime, meaning businesses must file their tax returns and pay any due taxes within nine months from the end of the relevant Tax Period.
For example, a business with a Financial Year ending on December 31 must file its return and pay taxes by September 30 of the following year.
Penalties for Late Filing and Payment
- AED 500 for each month of delay (or part thereof) for the first twelve months.
- AED 1,000 for each month of delay (or part thereof) from the thirteenth month onwards.
Filing Requirements
Tax returns can be submitted by the Taxable Person or a representative, such as a tax agent. In the case of a Tax Group, the Parent Company files returns on behalf of the entire group.
Record Keeping
Taxable Persons must maintain records and documentation to support the information provided in tax returns. These records should enable the FTA to readily ascertain the Taxable Income.
Required Records
- Transactions during the Tax Period.
- Assets, including purchases and disposals.
- Liabilities.
- Stock held at the end of the Tax Period.
Failure to maintain the necessary records can result in penalties, including AED 10,000 for each violation and AED 20,000 for repeated violations within 24 months.
Case Study 1: Timely Tax Filing
Company E filed their tax return and paid their taxes well before the deadline. This proactive approach ensured they avoided any late penalties and maintained a good standing with the FTA.
Case Study 2: Comprehensive Record Keeping
Company F kept detailed records of all transactions and assets. When the FTA requested their financial statements, they were able to provide all necessary documentation, ensuring a smooth compliance process.
How Fastlane Can Help
Fastlane's experts assist with timely tax return filings and comprehensive record-keeping services. We ensure your business complies with all regulatory requirements, helping you avoid penalties and maintain accurate records.
