For businesses, tax filing is a herculean task laden with numbers and calculations. Many businesses approach tax filing as a cautionary tale, requiring utmost care and deep focus. With UAE corporate tax rules being new to many, it is crucial to prepare for UAE corporate tax filing to efficiently and accurately file your income tax return.
UAE Corporate Tax Rate
– Corporate Tax Rate: 9%
– Income Threshold: Businesses with an income over AED 375,000 are liable to pay corporate tax.

Corporate Tax Filing Basics
Corporate tax in the UAE is calculated based on the net profit shown in the company’s financial statements. To file tax returns accurately, you need to organize specific financial documents.
Essential Documents for Corporate Tax Filing:
- Financial Statements: For calculating taxable income.
- Receipts for Deductions: To claim permissible deductions.
- Statements for Estimating Exempt Income: To identify non-taxable earnings.
- Records of Exemption Status: To verify exempt categories.
- Business Loan Documents: To account for interest paid.
- Transfer Pricing Records: To comply with transfer pricing regulations.
- Records of Foreign Tax Paid: To assess tax implications accurately.
Analyzing Business Areas for Corporate Tax Filing
Understanding the impact of the corporate tax regime on various business areas is essential for accurate tax assessment and compliance.
Key Business Areas to Analyze:
Financial Status
Tax is based on financial statements data. Review accounting policies, entries, and disclosures focusing on:
– Depreciation
– Amortization
– Provisioning
– Revaluation
Focus on expenditures to identify tax-deductible expenses and ensure compliance with UAE corporate tax rules to avoid overpaying taxes.
Operational Profile
Ensure effective finance, tax operations, and IT systems comply with the UAE corporate tax regime. Responsibilities between tax operations and other teams must be clearly defined and communicated.
Adapt IT systems to:
– Include tax computations for EBIDTA calculation.
– Monitor annual tax liability.
– Incorporate tax liability into financial planning and budgeting.
Transfer Pricing Model
Compliance with transfer pricing rules is mandatory. The transfer pricing model used by a group of companies affects taxable income calculations. Ensure group companies align their transfer pricing model with their operating model.
Design transfer pricing policies that can be implemented throughout the financial year to streamline tax calculations before closing the year’s financial statements.
Free Zone Entity Implications
Businesses in free zones are exempt from tax, but the criteria for qualifying as a Free Zone company are complex. Free Zone companies should:
– Review conditions for maintaining Free Zone status.
– Assess the pros and cons of being a Free Zone entity.
– Evaluate the operational profile against Free Zone criteria to maintain status.
Aligning Accounting Policies with New Laws
Thoroughly read the regulations to align your accounting policies with the new corporate tax laws. Financial reports are crucial for computing tax liability.
Simplify Corporate Tax Filing with Unicorn Global Solutions
With an advanced accounting solution like Unicorn Global Solutions, you can maintain your books for Corporate Tax effortlessly. The platform helps scrutinize financial reports and assess exempt and non-exempt income. Real-time updates on depreciation, amortization, and revaluation help compute your tax liability accurately.
Preparing for corporate tax filing in the UAE requires meticulous planning and adherence to new regulations. Using Unicorn Global Solutions, you can ensure your business remains compliant while accurately calculating your tax liability. Contact us for expert guidance and support throughout your tax filing process. Text us on WhatsApp or call us today.