Urgent Reminder: File Your UAE Corporate Tax Return Before 30th September 2025

The Countdown Has Begun: Only Days Left to File Your Corporate Tax Return

The deadline for submitting your UAE corporate tax return is rapidly approaching—30th September 2025. This is the final day for businesses with a financial year ending on 31st December 2024 to file their returns. Missing this deadline can result in severe penalties and interest charges.

Why Timely Filing Is Crucial

The UAE introduced corporate tax in June 2023, marking a significant shift in the country's tax landscape. Under this new system, companies are required to file their corporate tax returns annually within nine months after the end of their financial year. For businesses with a financial year ending on 31st December 2024, the filing deadline is 30th September 2025.

Penalties for Late Filing

Failing to submit your corporate tax return on time can lead to substantial penalties:

• Late Filing Penalty: AED 500 per month for the first 12 months, increasing to AED 1,000 per month thereafter. mof.gov.ae

• Late Payment Interest: An annual interest rate of 14% on any unpaid tax amounts. chambers.com

For example, a delay of just one month could result in a fine of AED 500, which increases to AED 1,000 per month after 12 months. Additionally, interest charges on unpaid taxes can accumulate rapidly, further increasing your financial burden.

Potential Waiver for Late Registration

If your business was late in registering for corporate tax, there's a potential way to avoid the AED 10,000 late registration penalty. The UAE's Federal Tax Authority (FTA) has introduced a temporary waiver:

• Eligibility: Submit your corporate tax return within seven months from the end of your first tax period. tax.gov.ae

• Benefit: The AED 10,000 late registration penalty may be waived if the return is filed within this timeframe.

However, this waiver does not apply to late filings. To benefit from this waiver, ensure your return is submitted promptly.

Steps to Ensure Timely Filing

To avoid penalties and ensure compliance:

1. Register with the FTA: Ensure your business is registered for corporate tax in the UAE.

2. Maintain Accurate Financial Records: Keep detailed records of all income, expenses, and supporting documents.

3. Prepare the Corporate Tax Return: Complete the tax return in line with FTA requirements, including calculating taxable income and applying any exemptions.

4. File Online via EmaraTax: Submit your return through the FTA's EmaraTax portal before the deadline.

5. Consult a Tax Professional: Seek advice from a tax consultant to ensure accuracy and compliance.

Common Mistakes to Avoid

• Delayed Filing: Submitting your return after the deadline can result in significant penalties.

• Inaccurate Information: Providing incorrect figures can lead to fines and audits.

• Overlooking Exemptions: Failing to apply eligible exemptions can result in overpayment of taxes.

• Neglecting Free Zone Rules: Even businesses in free zones must file returns and comply with specific regulations.

Need Assistance?

If you're unsure about the filing process or need help preparing your corporate tax return, consider consulting a tax professional. They can guide you through the process, ensure compliance, and help avoid costly mistakes.

Act Now to Avoid Penalties

With only days remaining until the 30th September 2025 deadline, it's crucial to act swiftly. Delaying further increases the risk of penalties and interest charges. Take the necessary steps today to ensure your business remains compliant and avoids unnecessary financial burdens.

Remember, timely filing is not just a legal obligation—it's a testament to your business's commitment to compliance and good governance. Don't let the deadline pass without taking action