Tax Return | Flexzo Technology FZE

UAE tax return filing: ensure submission by September 2025.

Tax return 2025

On this page, you will learn what a tax return is, why timely submission is important, and the consequences of missing the deadline.

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What is a Tax Return and Why Is It Necessary

A corporate tax return is an annual report submitted by a company to the UAE Federal Tax Authority (FTA), detailing its taxable profit and the amount of tax payable.

➢ 0% on profits up to AED 375,000;
➢ 9% on the portion of profits exceeding AED 375,000.

In other words, small companies with profits below the AED 375,000 threshold are exempt from paying tax, but filing a tax return remains mandatory.

The new law sets the tax rate as follows:

Filing Deadlines

Please note: if a company’s reporting period starts from June 1, 2023, and a non-standard reporting period (financial year) is chosen, the first tax period may vary in length (from 6 to 18 months). In such cases, the filing deadline is calculated individually—9 months after the end of the first tax period.

However, for most operating businesses, September 2025 serves as the key deadline for the first corporate tax reporting.

How the Tax Return Filing Process Works (Briefly)

Our company can fully manage the preparation and filing of your tax return. Generally, the process involves the following steps:

Registration with the FTA.

If your organization is not yet registered as a corporate tax payer, this must be done in advance. A penalty of AED 10,000 applies for late registration, so it is best not to delay. Registration is completed via the Federal Tax Authority’s online portal (EmaraTax system).

Financial Reporting.

Prepare the financial statements for the tax period, including the balance sheet, profit and loss statement, statement of changes in equity, and cash flow statement.
Companies with revenues exceeding AED 50,000,000 are required to have their financial statements audited. Additionally, certain Free Zones may mandate audited reports even for companies with lower revenues.

Calculation of Taxable Profit.

Based on the financial reports, the taxable profit is determined by deducting allowable expenses from income. The resulting net profit is then adjusted for exempt or non-taxable amounts—for example, the first AED 375,000 of profit is taxed at 0%.
Any applicable reliefs are also taken into account, such as Small Business Relief for SMEs or zero-tax regimes for qualifying Free Zone companies.

The Corporate Tax Return is completed through the FTA’s online portal (EmaraTax). The form includes company details, income, expenses, taxable base calculation, and the amount of tax payable. Supporting documents can be uploaded as part of the submission.
After a thorough review, the return is submitted electronically to the tax authority. It is essential to file the return by the deadline, even if no tax is due, to avoid penalties.

Completion and Submission of the Return.

Tax Payment.

The tax assessed in the return must be paid by the filing deadline, as the payment and filing deadlines coincide. Late payment will result in penalties (outlined below).
Payment can be made via bank transfer using the provided payment details or online through the FTA portal.

Important Reminder

Each company is responsible for the accuracy and timely submission of its tax return. If accounting presents challenges, it is strongly advisable to engage professional support.

A properly prepared return helps prevent future tax penalties, as the tax authorities have the right to request additional information or initiate an audit if discrepancies are identified.

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Consequences of Late or Non-Filing of Tax Returns

UAE tax legislation imposes strict penalties for failure to comply with tax return filing and payment obligations.

** Similar penalties to those for deliberate failure to file (including criminal liability) apply for intentional misrepresentation of data in the tax return or destruction of accounting records. In other words, the risk far outweighs any benefit — the cost of non-compliance is significantly higher than timely tax payment.

Example of Corporate Tax Calculation

Profit for 2024

500 000 AED
Non-Taxable (0%)

375 000 AED
Taxable (9%)

125 000 AED
Tax Due

125 000 × 9 % = 11 250 AED

If profit ≤ AED 375,000, tax = AED 0, but the tax return must still be filed!

When completing the return, such a company will report its profit and apply the 0% rate. This exempts it from tax, but only if the return is submitted on time—otherwise, penalties for late filing will apply even if no tax is due.

Even if a business is not required to pay tax — due to low income or preferential conditions — it is still obligated to register and file a Corporate Tax Return.
For example, freelance entrepreneurs earning more than AED 1 million annually must register and file a return if they operate as a business.
The UAE’s tax culture is still developing, and the government places strong emphasis on ensuring that all eligible taxpayers are included in the system.

How FLEXZO Can Assist:

The Federal Tax Authority’s website offers a comprehensive Corporate Tax Guide—175 pages of official clarifications.
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Скачать Corporate Tax Guide от FTA (PDF)

This is a complex technical document detailing dozens of possible scenarios, calculation nuances, and exceptions. Understanding it without prior preparation is not an easy task.

To simplify the process, the FLEXZO team has developed a structured questionnaire (available to FLEXZO clients upon service engagement) that helps determine whether you need to file a return and how to complete it correctly.

Even our condensed guide is 20 pages of concentrated information that requires careful review.

Tasks included in our accounting support service:

Financial Reporting Collection

We collect the company’s financial statements and other necessary data required to prepare the corporate tax return for the relevant financial year.

1
Document Review

We review supporting documents for reported income and expenses on a sample basis to ensure accuracy and compliance.

2
Tax Elections and Reliefs

We reflect all necessary tax elections and apply eligible deductions and exemptions in accordance with UAE tax regulations.

3
Taxable Profit Calculation

We calculate the taxable income based on the provided financial data, taking into account all applicable tax reliefs and exemptions.

4
Tax Return Preparation and Filing

We prepare and submit the corporate tax return through the FTA portal, ensuring full compliance with UAE corporate tax law.

5
Tax Payment Assistance

We assist with the timely payment of the tax due, making sure it is settled correctly and before the official deadline.

6

Sources (reliable information and official clarifications):

UAE Federal Law No. 47 of 2022 “On Taxation of Corporations and Businesses” and clarifications from the UAE Ministry of Finance.
The “Corporate Tax” section on the official UAE government portal.
UAE Ministry of Finance announcements regarding penalties: Cabinet Decision No.75 of 2023, No.10 of 2024 (см. новость MoF: AED 10,000 Penalty for Late Corporate Tax Registration).
Clarifications from the Federal Tax Authority (FTA) for individuals on the requirement to register and file returns.

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