Corporate Tax In The Free Zones - New Guidelines 2024

 Some new guidelines were released in May 2024 regarding corporate tax in Free Zones. Here's a quick rundown:

·       The Federal Tax Authority (FTA) issued a guide on how Corporate Tax applies to businesses operating in Free Zones [UAE corporate tax guide for freezones]. This guide clarifies the process for Qualifying Free Zone Persons (QFZPs) to benefit from the 0% corporate tax rate on their Qualifying Income.

·       The guide also details what constitutes Qualifying Activities, Excluded Activities, and the compliance requirements for QFZPs [UAE corporate tax guide for freezones].

Some important points to remember:

·       The 0% tax rate applies to Qualifying Income earned by QFZPs.

·       Not all Free Zone businesses automatically qualify as QFZPs. There are specific requirements to meet.

·       The guide offers details on what happens if a QFZP operates outside the Free Zone in a Permanent Establishment (PE). In that case, the income from the PE would be taxed at the standard 9% corporate tax rate.

If you're looking for the official guide, you can find it on the UAE government's tax authority website: [UAE corporate tax guide for freezones].

Not all Free Zone businesses automatically qualify as QFZPs.

Here's a breakdown of what a Free Zone business needs to do to qualify as a Qualifying Free Zone Person (QFZP) and enjoy the 0% corporate tax rate on its Qualifying Income:

Maximize Your Tax Benefits with the latest updates on qualifying income and activities for the 0% corporate tax rate in UAE Free Zones.

The Ministry of Finance has released crucial information for companies operating in these zones. Here's a breakdown:

• Qualifying Income:
• Transactions with other Free Zone entities.
• Income derived from conducting approved activities (both domestically and internationally).
• Excluded Activities (No 0% Tax Rate):
• Transactions with individual consumers.
• Banking, insurance, financing, and specific leasing activities.
• Owning/using intellectual property assets or UAE real estate.

Important Note: Generating income from excluded activities or non-qualifying sources can disqualify your company from the 0% tax benefit, with some exceptions based on "de minimis requirements."

Stay Compliant, Stay Competitive:

By understanding these guidelines, you can ensure your Free Zone business continues to enjoy the benefits of the 0% corporate tax rate.

Substance Requirements:

• Adequate economic activity: The company's core income-generating activities must be physically located within the Free Zone. This translates to having an adequate number of qualified employees, appropriate assets, and incurring operational expenditure within the Free Zone, commensurate with the level of its activities. Outsourcing is allowed, but only with proper supervision within the Free Zone.
• Demonstrate economic substance: This means the company should be a genuine business operation and not just a shell company set up to avoid taxes.

Income Requirements:

• Qualifying Income: The company's income must come from activities listed as "Qualifying Activities" by the UAE authorities. These are generally activities that contribute to the development of the UAE economy, such as manufacturing, technology, and logistics. Excluded Activities, like banking and insurance, typically don't qualify for the 0% tax rate.

Compliance Requirements:

• Maintain proper records: The company must maintain detailed records of its income, expenses, employees, and assets to demonstrate compliance with QFZP criteria.
• Transfer Pricing: Companies with related party transactions (e.g., with subsidiaries or parent companies) need to comply with transfer pricing rules to ensure arm's length pricing is followed.
• Tax filings: Even with a 0% tax rate, QFZPs are still required to file tax returns with the FTA.

Additional factors to consider:

• New businesses: A new company in its setup phase may still need to generate income, but as long as it meets the other requirements and intends to conduct Qualifying Activities within the Free Zone, it can still qualify as a QFZP.
• Operating outside the Free Zone: If a QFZP establishes a Permanent Establishment (PE) outside the Free Zone, the income generated through that PE will be subject to the standard 9% corporate tax rate.

By meeting these requirements, a Free Zone business can leverage the benefits of being a QFZP, including the significant advantage of a 0% corporate tax rate on its Qualifying Income. It's important to consult with a tax advisor to ensure your specific business activities and structure align with the QFZP criteria. 

U.A.E Eyes Global Minimum Tax: Will Big Business Face a Bigger Bite in 2025?

 There have been a few recent developments concerning corporate tax in the UAE:

• UAE Pass for Tax Portal Access: Since late September 2023, the Federal Tax Authority has required the use of the UAE Pass to access the tax portal. This applies to corporate tax, VAT, excise tax, and even filing claims for refunds or appeals. [National News Article on UAE Corporate Tax Updates]
• New Giban for Corporate Tax: Companies registered for corporate tax now have unique Giban (Generated International Bank Account Numbers) specifically for this purpose. These differ from Gibans used for VAT purposes. This aims to streamline corporate tax payment processing. [National News Article on UAE Corporate Tax Updates]
• Implementation of Pillar Two Rules: The UAE is establishing the groundwork to implement the OECD's Pillar Two minimum tax rate of 15% expected to be rolled out in 2025. Public consultation is expected in early 2024. [Clyde & Co - Developments for UAE Family Businesses]

These updates focus on administrative aspects of corporate tax rather than any changes to tax rates or exemptions.

U.A.E -Implementation of Pillar Two Rules

Yes, the UAE is considering implementing the Global Minimum Tax, but with a potential delay. Here's a breakdown of the situation:

• The OECD's Global Minimum Tax, also known as Pillar Two, proposes a minimum corporate tax rate of 15%.
• The UAE currently does not levy a federal corporate income tax, although it introduced a 9% corporate income tax for businesses operating outside of free zones in June 2023.
• In March 2024, the UAE Ministry of Finance held a public consultation to gather feedback on implementing the Pillar Two rules. This suggests they are at least considering it.
• However, the consultation concluded in April 2024, and there haven't been any announcements about a definitive implementation date. Reports suggest the UAE might not implement Pillar Two in 2024 

In summary:

• The UAE is exploring the possibility of implementing the Global Minimum Tax under Pillar Two.
• They held a public consultation in March 2024, indicating serious consideration.
• Implementation seems unlikely for 2024, with 2025 as a potential target year.

It's important to stay updated on official announcements from the UAE Ministry of Finance for the latest developments. 

• Expected Timeline: The UAE is aiming to have Pillar Two in place by 2025.
• Public Consultation: Discussions and consultations with stakeholders regarding the specific implementation details of Pillar Two are anticipated for early 2024. This suggests the UAE government is finalizing the framework.
• Legal Updates: The Ministry of Finance has already amended the Corporate Tax Law to prepare for Pillar Two.

Resources for Further Reading:

• Update on UAE Pillar Two Implementation: [Orbitax Tax News on UAE Pillar Two] (you can search for this by title)
• Analysis of Pillar Two and UAE Free Zones: [Aurifer Tax - Pillar Two and UAE Free Zones]

U.A.E -Implementation of Pillar Two Rules

Pillar Two of the OECD's Global Minimum Tax framework aims to ensure multinational corporations (MNCs) pay a minimum tax rate of 15% globally. Here's a breakdown of the key details:

Core Concept:

• Effective Tax Rate (ETR): This is a calculated tax rate based on a company's profit divided by its tax bill.
• Top-up Tax: If an MNC's ETR in a particular country falls below the 15% minimum, the parent company (or another entity in the group) will be subject to a "top-up tax" to ensure the effective tax rate reaches 15%.

Implementation Mechanisms:

• Qualified Domestic Minimum Top-up Tax Rule: This gives priority to the country where the MNC operates with the low tax rate. This country can impose a top-up tax to ensure the minimum rate is met.
• Income Inclusion Rule (Subject to a Tax Treaty Override): If the top-up tax isn't applied in the low-tax country, the parent company (or another entity in the group) can be taxed on the difference between the subsidiary's profit and the minimum tax rate multiplied by its profit. This essentially forces the group to pay the top-up tax elsewhere.
• Undertaxed Profits Rule: This acts as a backstop. If neither of the above rules are applied, the parent company's country of residence can tax the difference between the minimum rate and the ETR in the low-tax country.

Who is Affected?

• The rules generally apply to large Multinational Enterprises (MNEs) with a consolidated group revenue exceeding EUR 750 million.

Implementation Timeline:

• A global implementation date of 2024 was initially proposed, but this has been pushed back.
• The UAE, like many countries, is targeting implementation by 2025.

Additional Points:

• There are mechanisms to avoid double taxation and ensure the system operates efficiently.
• Public consultations regarding specific implementation details are crucial, and the UAE is expected to hold these consultations in early 2024.

For further information, you can refer to resources like the OECD's documentation on Pillar Two or tax advisory firm publications on the topic. 

Don't Get Fined -Important Updates to the U.A.E Corporate Tax

 Registration Deadlines: The Federal Tax Authority (FTA) has issued new deadlines for companies to register for Corporate Tax. These deadlines depend on the company's type and situation:

• Resident Persons: Companies incorporated or established in the UAE, including those in Free Zones, must register within 3 months of their incorporation, establishment, or recognition.
• Non-Resident Persons:
• Companies with a Permanent Establishment in the UAE need to register within 6 months of establishing the Permanent Establishment.
• Companies with a nexus in the UAE (e.g., generating taxable income in the UAE) must register within 3 months of establishing the nexus.
• Companies with licenses issued in January or February 2024 need to register by May 31, 2024, regardless of their type.
• Failing to register within the specified timeframe can lead to a penalty of AED 10,000.

It's important to understand that avoiding fines associated with UAE corporate tax is not about finding loopholes, but about complying with the regulations. Here are some key steps to ensure compliance and avoid penalties:

1. Timely Registration:

• Ensure you register for corporate tax within the specified deadlines based on your license issuance month.
• The current deadlines are outlined in the Federal Tax Authority (FTA) Decision [source].
• Late registration incurs a penalty of AED 10,000.

2. Maintain Accurate Records:

• Keep detailed and up-to-date records of your finances, including income, expenses, and tax calculations, as per the Tax Procedures Law and the Corporate Tax Law.
• Failure to maintain proper records can result in fines of AED 10,000 for the first offense and AED 20,000 for repeat offenses within 24 months.

3. Timely Submission of Tax Declarations:

• Submit your tax declarations to the FTA within the stipulated deadlines.
• Late submissions incur monthly penalties, starting at AED 500 for the first 12 months and increasing to AED 1,000 per month thereafter.

4. Seek Professional Guidance:

• If you have any complexities regarding UAE corporate tax, consider consulting with a qualified tax advisor or accountant who can provide personalized guidance and ensure compliance.

Remember, the UAE government aims to create a fair and transparent tax system. By complying with the regulations, you can avoid unnecessary fines and penalties and contribute positively to the country's economic development. 

Additional Resources:

• You can find more information and guidance on the FTA website: https://tax.gov.ae/en/taxes/corporate.tax.aspx

It's important to note that this information is for general awareness only and may not apply to all situations. For specific advice regarding your company's tax obligations, it's recommended to consult with a tax professional.

 

The new developments in corporate tax in the U.A.E

 The following are some of the new developments in corporate tax in the UAE:

 The UAE corporate tax regime will come into effect on June 1, 2023. Businesses will be liable to pay tax on their taxable profits from the financial year starting on or after that date. The UAE corporate tax rate will be 9% for all businesses, except for those that generate more than AED 375 million in taxable profits. These businesses will be subject to a higher corporate tax rate of 15%.

 The UAE corporate tax regime will include several exemptions and deductions. For example, businesses that generate less than AED 375,000 in taxable profits will be exempt from corporate tax. Additionally, there will be deductions for certain expenses, such as research and development costs.

The UAE corporate tax regime will be administered by the Federal Tax Authority (FTA). The FTA has published a number of guidance notes and FAQs on the UAE corporate tax regime, which can be found on its website.

Here are some of the key features of the UAE corporate tax regime:

Territorial system: The UAE corporate tax regime is a territorial system, which means that only businesses that generate income from within the UAE will be liable to pay corporate tax. The United Arab Emirates (UAE) has recently adopted a territorial system of corporate taxation. 

There are a number of benefits to a territorial system of corporate taxation. First, it can help to attract foreign investment. Second, it can promote economic growth by encouraging businesses to invest and expand within the country. Third, it can simplify the tax system and reduce the compliance burden on businesses.

However, there are also some potential drawbacks to a territorial system of corporate taxation. First, it can lead to tax avoidance and base erosion. Second, it can be difficult to administer, as countries need to be able to track the profits that companies generate in different jurisdictions. 

Taxable profits: Taxable profits are calculated as revenue minus deductible expenses. Taxable profits are the profits of a business that are subject to corporate tax. Taxable profits are calculated by subtracting deductible expenses from revenue.

Deductible expenses are expenses that are incurred for the purpose of generating income for the business. Some examples of deductible expenses include:

• Cost of goods sold
• Operating expenses, such as rent, salaries, and utilities
• Interest on business loans
• Depreciation on business assets

Non-deductible expenses are expenses that are not incurred for the purpose of generating income for the business. Some examples of non-deductible expenses include:

• Personal expenses of the business owner
• Capital expenditures, such as the purchase of new business assets
• Dividends paid to shareholders

In the UAE, taxable profits are subject to corporate tax at a rate of 9%. However, businesses that generate less than AED 375,000 in taxable profits are exempt from corporate tax. 

Here is an example of how to calculate taxable profits: 

• Revenue: AED 1,000,000
• Cost of goods sold: AED 300,000
• Operating expenses: AED 200,000
• Interest on business loans: AED 50,000
• Depreciation on business assets: AED 100,000 
• Total deductible expenses: AED 650,000 
• Taxable profits: AED 350,000 

The taxable profits of the business in this example would be AED 350,000. This amount would be subject to corporate tax at a rate of 9%.

Transfer pricing: Transfer pricing is the process of determining the prices of transactions between related parties. Related parties are companies that are controlled by the same entity or that have a common interest. Transfer pricing is important because it can be used to shift profits between different countries in order to reduce a company's overall tax burden. 

The UAE corporate tax regime includes transfer pricing rules. These rules are designed to ensure that transactions between related parties are conducted at arm's length prices. Arm's length prices are the prices that would be charged between unrelated parties for the same or similar transactions. 

There are a number of different transfer pricing methods that can be used. The most common transfer pricing method is the comparable uncontrolled price (CUP) method. The CUP method compares the prices of transactions between related parties to the prices of similar transactions between unrelated parties. 

Other transfer pricing methods include the cost-plus method, the resale price method, and the profit split method. The choice of transfer pricing method will depend on the specific facts and circumstances of the case.

Businesses that engage in transactions with related parties are required to maintain transfer pricing documentation. Transfer pricing documentation is a document that shows how the transfer prices for transactions between related parties were determined. Transfer pricing documentation helps to ensure that the transfer prices are arm's length prices. 

The UAE Federal Tax Authority (FTA) has published a number of guidance notes and FAQs on transfer pricing. These guidance notes and FAQs can be found on the FTA's website. 

Businesses that are operating in the UAE or that are planning to expand into the UAE should carefully review the UAE transfer pricing rules to ensure that they are in compliance with all applicable laws and regulations. 

Here are some tips for complying with the UAE transfer pricing rules: 

1. Identify all related parties. The first step is to identify all of the companies that are related to your company. This includes companies that are controlled by the same entity, companies that have a common interest, and companies that are associated with your company through directors or shareholders.
2. Determine the prices of transactions with related parties. Once you have identified all of your related parties, you need to determine the prices of the transactions that you have with them. You should use an arm's length pricing method to determine the prices of these transactions.
3. Maintain transfer pricing documentation. You are required to maintain transfer pricing documentation that shows how you determined the prices of the transactions that you have with your related parties. Transfer pricing documentation is important because it helps to ensure that the transfer prices are arm's length prices.

Losses: Businesses in the UAE can carry forward losses for up to five years and offset them against future profits. This means that if a business makes a loss in one year, it can reduce its taxable profits in subsequent years by the amount of the loss. 

There are a few conditions that apply to the carry-forward of losses in the UAE: 

1. The loss must be a genuine trading loss. This means that it must be incurred in the ordinary course of business and not due to factors such as capital losses or capital gains.
2. The loss must have been incurred in the UAE.
3. The business must have been carrying on a trade or business in the UAE continuously since the year in which the loss was incurred.

To carry forward a loss, a business must submit a loss carry forward claim to the Federal Tax Authority (FTA). The FTA will then assess the claim and determine whether the loss is eligible to be carried forward. 

Here is an example of how the carry-forward of losses works in the UAE: 

Year 1: A business incurs a loss of AED 100,000. 

Year 2: The business generates a profit of AED 50,000. The business can offset its profit against the loss carry forward from Year 1, which means that it will not have to pay any corporate tax in Year 2. 

Year 3: The business generates a profit of AED 150,000. The business can offset its profit against the remaining loss carry forward from Year 1, which means that it will only have to pay corporate tax on AED 100,000 of its profit in Year 3.

The carry-forward of losses can be a valuable benefit for businesses in the UAE. It can help to reduce a business's tax burden and improve its cash flow.

Dispute resolution: Businesses in the UAE can carry forward losses for up to five years and offset them against future profits. This means that if a business makes a loss in one year, it can reduce its taxable profits in subsequent years by the amount of the loss.

There are a few conditions that apply to the carry-forward of losses in the UAE:

1. The loss must be a genuine trading loss. This means that it must be incurred in the ordinary course of business and not due to factors such as capital losses or capital gains.
2. The loss must have been incurred in the UAE.
3. The business must have been carrying on a trade or business in the UAE continuously since the year in which the loss was incurred.

To carry forward a loss, a business must submit a loss carry forward claim to the Federal Tax Authority (FTA). The FTA will then assess the claim and determine whether the loss is eligible to be carried forward. 

Here is an example of how the carry-forward of losses works in the UAE: 

Year 1: A business incurs a loss of AED 100,000. 

Year 2: The business generates a profit of AED 50,000. The business can offset its profit against the loss carry forward from Year 1, which means that it will not have to pay any corporate tax in Year 2. 

Year 3: The business generates a profit of AED 150,000. The business can offset its profit against the remaining loss carry forward from Year 1, which means that it will only have to pay corporate tax on AED 100,000 of its profit in Year 3. 

The carry-forward of losses can be a valuable benefit for businesses in the UAE. It can help to reduce a business's tax burden and improve its cash flow.

Dispute resolution in UAE corporate law can be conducted through a variety of methods, including:

Negotiation: This is the most common method of dispute resolution, and it involves the parties directly communicating with each other in an attempt to reach a mutually agreeable solution.

Mediation: This is a process in which a neutral third party (the mediator) helps the parties to communicate with each other and reach a resolution.

Arbitration: This is a process in which a neutral third party (the arbitrator) hears the case and makes a binding decision.

Litigation: This is the process of filing a lawsuit in court and having the case decided by a judge.

The best method of dispute resolution will depend on the specific facts and circumstances of the case. For example, if the dispute is relatively simple and the parties have a good relationship, then negotiation may be the best option. If the dispute is more complex or the parties have a poor relationship, then mediation or arbitration may be a better option. If the parties cannot resolve the dispute through other methods, then litigation may be the only option. 

Here is an overview of the arbitration and litigation processes in the UAE: 

Arbitration: 

Arbitration is a confidential process, and the arbitrator's decision is binding on the parties.

1. To initiate arbitration, the parties must agree to arbitrate the dispute and sign an arbitration agreement.
2. The arbitration agreement will typically specify the rules of arbitration that will be used and the qualifications of the arbitrator.
3. The arbitration hearing will be conducted in accordance with the rules of arbitration that the parties have agreed to.
4. After the hearing, the arbitrator will issue a decision, which is binding on the parties.

Litigation: Litigation is a public process, and the court's decision is binding on the parties.

To initiate litigation, one party must file a lawsuit in court.

The lawsuit will be served on the other party, and the other party will have the opportunity to respond.

The case will then proceed through a series of pre-trial hearings, followed by a trial.

After the trial, the judge will issue a decision, which is binding on the parties.

Businesses that are operating in the UAE or that are planning to expand into the UAE should carefully consider their dispute resolution options. It is important to have a dispute resolution strategy in place in case a dispute arises. 

Here are some tips for choosing the right dispute resolution method: 

1. Consider the nature of the dispute. Is it relatively simple or complex?
2. Consider the relationship between the parties. Is it good or poor?
3. Consider the cost and time implications of each dispute resolution method.
4. Consider the enforceability of the dispute resolution method.

Here are some of the key benefits of the UAE CT regime:

• Competitive tax rate: The UAE CT rate of 9% is one of the most competitive in the world. This makes the UAE an attractive destination for businesses looking to reduce their tax burden.
• Simple and efficient tax system: The UAE CT system is designed to be simple and efficient. Businesses can file their tax returns online and make tax payments electronically.
• Experienced tax authorities: The UAE has a team of experienced tax authorities who are available to assist businesses with their tax compliance obligations.

The UAE CT regime is expected to have a positive impact on the UAE economy. It will attract new businesses to the UAE and help existing businesses to grow. The tax regime will also generate revenue for the government, which can be used to fund public services and infrastructure development.

The Group companies and U.A.E corporate tax

 Group companies in the UAE can elect to form a tax group for UAE corporate tax purposes, provided they meet the following conditions:

 The parent company must be a UAE tax resident.

The parent company must directly or indirectly hold at least 95% of the share capital, voting rights, and entitlement to profits and net assets of each subsidiary in the group.

All companies in the group must have the same financial year and prepare their financial statements using the same accounting standards.

Neither the parent company nor any of the subsidiaries in the group may be an exempt person or a Qualifying Free Zone Person.

If a group of companies meets these conditions, they can elect to form a tax group by filing a joint election form with the Federal Tax Authority. Once the election is approved, the group will be treated as a single taxable person for UAE corporate tax purposes. This means that the group will be required to prepare consolidated financial statements and pay tax on its overall profits.

 There are several potential benefits to forming a tax group in the UAE. For example, tax groups can:

•  Eliminate intra-group transactions from their taxable profits.
• Consolidate losses from one company in the group with the profits of another company in the group.
• Carry forward losses from one year to offset profits in future years.
• Elect to tax cross-border dividends received from other tax group members at a lower rate.

However, there are also some potential disadvantages to forming a tax group. For example, tax groups are subject to more complex tax rules and administrative requirements. Additionally, if a company leaves the tax group, it may be subject to an exit tax.

 Overall, whether or not to form a tax group is a complex decision that should be made on a case-by-case basis. Businesses should carefully consider the potential benefits and disadvantages before making a decision.

 Here are some examples of how group companies can use tax groups to reduce their overall tax liability in the UAE:

 Example 1: A group of companies that operates a retail business has one company that is responsible for sourcing and importing goods, and another company that is responsible for distributing and selling the goods. By forming a tax group, the two companies can eliminate the intra-group profit margin from their taxable profits. This can result in a significant reduction in the group's overall tax liability.

Example 2: A group of companies that operates a real estate development business has one company that owns the land, another company that constructs the buildings, and a third company that sells the completed units. By forming a tax group, the three companies can consolidate their profits and losses. This means that if one company in the group makes a loss, it can be offset against the profits of the other companies in the group. This can help to stabilize the group's overall tax liability.

Example 3: A group of companies that operates a manufacturing business has one company that is located in the UAE and another company that is located in a foreign country. The UAE company exports goods to foreign companies. By forming a tax group, the two companies can elect to tax cross-border dividends received from each other at a lower rate. This can help to reduce the group's overall tax liability on its international activities.

It is important to note that the UAE corporate tax regime is still new, and there is some uncertainty about how certain aspects of the law will be interpreted and applied. As a result, businesses should consult with a qualified tax advisor before making any decisions about whether or not to form a tax group.

New Corporate Tax Law in the U.A.E and how to file returns

 Under the UAE Federal Decree Law No. 7 of 2022 on Corporate and Corporate Taxation1 (the "Corporate Taxation Law"), the UAE imposes a federal corporate tax (CT) on the net income of companies. The tax will take effective  July 1, 2023 or  January 1, 2024, depending on which reporting period the company follows2. TT is applicable in all  emirates.

  CT speeds are as follows:
 
 0 percent of taxable income up to AED 375,0003
 9 percent of taxable income exceeding AED 375,000 

 Certain businesses and types of income  are exempt from CT, such as:  

1.  Companies involved in the use of natural resources
2.  Dividends and capital gains earned by the UAE company on its quota units
3.  Approved intra group transactions and reorganizations
4.  Salary and other income of an individual
5.  Interest and other income earned by an individual from bank deposits or savings schemes

 To register for corporate income tax in the UAE, you must follow these steps.
 
 Log in to the EmaraTax portal by clicking on e services.tax.gov.ae and entering your registered email address and password. If you do not have an account, you can register by clicking the Register button.  A list of taxpayers will appear, and if it is empty,  a new one must be created. Select a taxpayer from the list and click View to open the panel. Click Register in the Business Tax box on the Taxpayer panel. Fill in the required details of the application form and click on the "Submit" button. You will receive a confirmation email with your Tax Registration Number (TRN) and an account activation link. Click  the link and enter your TRN and password to access your account.  You can view and edit your profile, tax reports, payments, notifications and other services from your account control panel. The corporate income tax must be submitted and paid electronically through the EmaraTax portal before the deadline. You can also request exemptions, refunds or changes through the portal if you are eligible.  You can waive corporate income tax if you stop doing business  in the UAE or if you meet certain conditions. Through the portal one must submit a  request for removal from the register and pay all unpaid tax debts.
 The deadline for reporting and paying UAE corporate income tax  depends on the financial year of your business. You have time to register until the date of submission of the first tax return. The new UAE corporate income tax system allows taxpayers  to prepare for reporting and paying taxes within 21 months of the start of the financial year. For example, companies whose fiscal year begins on June 1, 2023 and ends on May 31, 2024  must file a corporate income tax return and make payments by February 28, 2025.

 How to report and pay corporate income tax in the UAE
 To declare and pay  corporate income tax in the UAE, you must do the following:
 
 Calculate your corporation tax  on a self-assessment basis by applying the rate applicable  to your net income or profit for your financial year.  Prepare and submit the corporate income tax  electronically through the EmaraTax portal before the deadline. You must provide information such as  TRN, financial year, taxable income, tax rate, tax payable, tax paid and any exemptions or deductions claimed.  Pay your corporate income tax debt electronically through the EmaraTax portal before the deadline. You can choose from several different payment methods such as credit card, debit card, e-dirham, direct debit or bank transfer.  You will receive a confirmation email and  receipt for your tax return and payment. You can also view and download your tax returns and payment history from your account dashboard.