Persons subject to corporate tax in UAE under corporate tax law are called taxable persons, and they may be natural persons or judicial persons. Taxable Persons are required to submit Tax Returns and pay due Corporate Tax to the Federal Tax Authority within 9 months from the end of their Tax Period. The FTA may prescribe the form and manner of the Tax Return either by the inclusion of schedules and/or attachments. You must file the Tax Return online through EmaraTax.
The following categories of Taxable Persons are required to submit a Tax Return:
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Juridical person that is a Resident Person
A Resident Person, who is a juridical person, is required to submit a Tax return for Corporate Tax purposes in the UAE. A Resident Person is a juridical person, with or without legal personality, which is incorporated or established, or which is otherwise recognized under the laws of the UAE or under the laws of a Free Zone, and which is a tax resident in the UAE.
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Juridical person that is a Non-Resident Person
In the case of a Non-Resident Person having a UAE Permanent Establishment, a submission of a Tax Return for corporate tax purposes is required by a juridical person that is a Non-Resident Person. Article 14 of the Corporate Tax Law defines A Permanent Establishment of a Non-Resident Person in the UAE as the place of Business or other form of presence of the Non-Resident Person in the UAE.
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The natural person who is a Resident Person
The UAE requires a Resident Person, who is a natural person, to file a Tax Return in relation to Corporate Tax purposes. As stated in Article 4 of the Cabinet Decision No. 85 of 2022 the term ‘A Resident Person’ means a natural person who is a tax resident of the UAE.
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The natural person who is a Non-Resident Person
A natural person who is a Non-Resident Person is required to submit a Tax Return for Corporate Tax purposes in the UAE if they have a UAE Permanent Establishment.
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Qualifying Free Zone Person
A Taxable Person located in the Free Zone and satisfying the conditions to be a Qualifying Free Zone Person is called a Qualifying Free Zone Person. A Qualifying Free Zone Person is subject to Corporate Tax in UAE and the Tax Return for Corporate Tax purposes has to be filed.
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Tax Group
A Tax Group is a group of not less than two Taxable Persons, being, each of them, a Parent Company or a Subsidiary, which fulfill the conditions of Article 26(2) of the Corporate Tax Law and to which such application has been approved pursuant to an application filed by the Parent Company and each Subsidiary who have applied to become a respective member of the Tax Group. Tax Return of the Tax Group must be filed by the Parent Company of the Tax Group.
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Unincorporated Partnership
For purposes of Corporate Tax, an Unincorporated Partnership that is an approved applicant for such status under the Federal Tax Law should submit a Tax Return.
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Exempt Persons
Exempt Persons are not required to file a Return of Income for the purpose of Corporate Tax in the UAE, unless they derive taxable business, in which case they will be treated as a Taxable Person that is a Resident Person in the matter of conducting taxable business.
The Exempt Persons include those in the following categories:
- Government Entities,
- Government Controlled Entities,
- Extractive Business,
- Non-Extractive Natural Resource Business
- Qualifying Public Benefit Entities
- Private and public pension or social security funds
- Qualifying Investment Funds, and
- the UAE incorporated juridical persons which are wholly owned and controlled by an Exempt Person
Table 1: Summary of Taxable Persons required to submit a Tax Return for Corporate Tax purposes in the UAE
| Category of Taxable Person | Required to submit a Tax Return? |
|---|---|
| Juridical person that is a Resident Person | Yes |
| Juridical person that is a Non-Resident Person | Yes, if they have a UAE Permanent Establishment |
| Natural person who is a Resident Person | Yes / if they have AED 1 million turnover |
| Natural person who is a Non-Resident Person | Yes, if they have a UAE Permanent Establishment |
| Qualifying Free Zone Person | Yes |
| Tax Group | Yes, the Parent Company of the Tax Group is required to file the Tax Return |
| Unincorporated Partnership | Yes, if they have received an approved application to be treated as a separate Taxable Person |
| Exempt Persons | No, unless they have a taxable business |
Conclusion
Conclusively, a Taxable Person must file a Tax Return and also pay any Corporate Tax due to the FTA within 9 months from the end of the Tax Period. Businesses are advised to seek the assistance of premier tax consultants in UAE to meet corporate tax requirements seamlessly and ensure compliance with corporate tax law. Contact us today and we shall be glad to assist you.
FAQs
1. Who needs to submit a Tax Return for Corporate Tax in the UAE?
A Taxable Person shall include each juridical person who is a Resident Person, each juridical person who is a Non-Resident Person having a UAE Permanent Establishment, each natural person who is a Resident Person, each natural person who is a Non-Resident Person having a UAE Permanent Establishment, each Qualifying Free Zone Person, a Tax Group, an Unincorporated Partnership a view, and an Exempt Person having a taxable business.
2. When must a Tax Return be submitted?
The FTA must receive a Taxable Person’s Tax Return and any Corporate Tax owing by them within 9 months of the end of a Tax Period.
3. Is it possible for a Tax Agent to file a Tax Return on behalf of a Taxable Person?
Yes, a Tax Agent can fill out a Tax Return for a Taxable Person, if they are written to do so by the Taxable Person.