Dubai Hosts Workshop by Federal Tax Authority to Enhance Corporate Tax Obligation Adherence
In Dubai today, the Federal Tax Authority (FTA) held a well-attended workshop as part of its national campaign to elevate awareness and encourage compliance with the United Arab Emirates' Corporate Tax Law. Approximately 940 participants, including representatives from businesses, government entities, and key stakeholders, attended the session titled 'Rules for Determining Income Subject to Corporate Tax.'
The workshop focused on the fundamental principles of corporate tax, providing clarity on how income is identified, documented, and taxed under the law that took effect two years ago. The event is part of a larger initiative by the FTA to foster voluntary compliance and ensure that taxpayers have a solid understanding of their obligations. Four more in-person workshops are slated to take place across the country before the end of 2025, accompanied by a suite of virtual and physical sessions covering all seven emirates.
The FTA also renewed its appeal for eligible businesses and exempt persons to submit their corporate tax returns within seven months from the end of their first tax period. This would allow them to take advantage of the UAE Cabinet Decision that waives administrative penalties for late registrations, as long as submissions are made within the stipulated legal deadline.
Discussed topics included accounting standards, accrual-based income recognition, and definitions of financial elements in line with IFRS. Attendees were also offered guidance on registration procedures via the EmaraTax platform and criteria for determining taxable persons, applicable rates, and filing deadlines.
The FTA clarified that this campaign, launched in phases since 2024, is aimed at simplifying access to tax information, increasing clarity, and offering support to the business community in complying efficiently with the corporate tax framework. The principles and guidelines for determining taxable income primarily revolve around adhering to the Corporate Tax Law (CT Law), with a focus on transparency and compliance.
Recognized income includes both domestic and foreign-sourced income, unless exempt under specific provisions. Certain entities and specific types of income may be exempt, and certain businesses with low revenues may qualify for relief. Businesses must maintain accurate records, apply transfer pricing rules where necessary, and provide supporting documentation for all adjustments and claims.
The tax rates for resident companies, qualifying Free Zone businesses, and non-residents with UAE-sourced income or permanent establishments range from 0% for taxable income up to and including AED 375,000, to 9% for taxable income above that, and 15% for large multinational groups from 2025. Businesses are required to register, file annual returns, and keep abreast of all relevant legislative updates and subject-specific guides published by the FTA.
- The government's Federal Tax Authority (FTA) emphasized the importance of businesses, community members, and key stakeholders understanding the UAE's Corporate Tax Law, as they encourage voluntary compliance and offer support in a nationwide campaign.
- In the banking and insurance sector, the FTA advises eligible businesses and exempt persons to submit their corporate tax returns within seven months from the end of their first tax period, in order to benefit from the waiver of administrative penalties for late registrations.
- The FTA's campaign to increase public understanding of corporate tax laws includes discussions on topics such as accounting standards, accrual-based income recognition, and financial element definitions in line with International Financial Reporting Standards (IFRS), aimed at simplifying access to tax information for the business community.
