Guide Corporate Tax Return Filing

The Federal Tax Authority, UAE, published on 11th November 2024, Corporate Tax Guide | CTGTXR1 for Corporate Tax Return Filing. This guide has given a lot of details and clarified many questions relating to Corporate Tax return filing. It is very important to understand the process and field of Corporate Tax returns to avoid clerical mistakes that may end up in filing the wrong filing.

What is Corporate Tax Return filing, and why are schedules important?

All taxable persons required to submit Corporate Tax return filings with the federal tax authority within 9 months from the end of the financial year are ended.

While completing the tax return filing, information like revenue, expenses, and other quantitative information can only be added to the Corporate Tax return filing through these schedules.

Overview of the Tax Schedules in the Corporate Tax Return Filing

During the Corporate Tax return filing, the taxable person has to complete 20 schedules to assist with relevant calculations and populating figures in the tax return where applicable.

The Taxable person has to complete the following schedules to file the Corporate Tax return; only schedules relevant to them need to be updated by the Taxable person; if they are not relevant, then the Taxable person can choose not to select those schedules.

1. Free zone schedule: Completed by a qualifying Free Zone Person to provide information on revenue, non-qualifying revenue for de-minimis calculation, qualifying income, substance, and branch-wise EBITDA.

2. Free Zone income from Intellectual Property Schedule: Completed by a Qualifying Free Zone Person who has derived income from the ownership or exploitation of Qualifying Intellectual Property.

3. UAE Dividends Schedule: Completed by a Taxable Person who has received Dividends from juridical persons who are Resident Persons under the Corporate Tax Law.

4. Foreign Permanent Establishment Schedule: Completed by a Taxable Person who has made an election to exclude the income and associated expenditure of eligible Foreign Permanent Establishments from Corporate Tax.

5. Tax Credit Schedule: Completed by a Taxable Person who is claiming a Foreign Tax Credit.

6. Related Party Transaction Schedule: This Schedule should be completed by all Taxable Persons who have transactions with Related Parties in the Tax Period where the aggregate value of all transactions with all Related Parties recorded in the Financial Statements or at Market Value exceeds AED 40 million.

7. Connected Person Schedule: The purpose of this schedule is to disclose some of your high-value transactions with a connected person as defined in Article 36 of the Corporate Tax Law. The schedule is to be completed only if the aggregate value of transactions with each connected person (including their related parties) exceeds AED 500,000*.

8. Tax Losses Schedule: Completed by a Taxable Person (except a Tax Group) who:

• Has brought forward tax losses,
• Utilized Tax Losses during the Tax Period,
• Has received tax losses from another taxable person during the tax period, or
• Has transferred a tax loss during the tax period.

9. Tax Group Loss Schedule: Completed by the Tax Group. This schedule requires information in relation to:

• Pre-grouping tax losses of any new subsidiaries that joined the tax group during the tax period,
• Pre-grouping Tax Losses, which the Tax Group utilized during the Tax Period,
• The utilization and other changes in brought forward and current period tax losses of the tax group that are not pre-grouping tax losses,
• Tax Losses received by the Tax Group from another Taxable Person outside the Tax Group,
• Transfers of tax losses by the tax group to another taxable person outside the tax group. 

10. Participation Exemption Schedule: Completed by a Taxable Person that has derived income or losses from participation that is exempt under the Corporate Tax Law, other than dividends paid by a juridical person who is a Resident Person.

11. Interest capping schedule: Completed by a taxable person that has net interest expenditure and is subject to the General Interest Deduction Limitation Rule

12. Transfers within a Qualifying Group Schedule: Completed by a Taxable Person that has elected, or is a party to transfers within a Qualifying Group to which this relief applies. Also completed by a Taxable Person who has been party to a transfer benefiting from the relief in a previous tax period, and the relief is now subject to clawback.

13. Business Restructuring Relief Schedule: Completed by a Taxable Person that has elected or was a party to a transfer in respect of which Business Restructuring Relief applies. Also completed by a Taxable Person who has been party to a transfer under Business Restructuring Relief in previous tax periods, and the relief is now subject to clawback.

14. Transitional Rules-Qualifying Immovable Property Schedule: Completed by a Taxable Person that has elected to exclude an element of a gain recognized on Qualifying Immovable Property owned before the Taxable Person's first Tax Period.

15. Transitional Rules: Qualifying Intangible Assets Schedule: Completed by a Taxable Person that has elected to exclude an element of a gain recognized on Qualifying Intangible Assets owned prior to the Taxable Person's first Tax Period.

16. Transitional Rules: Financial Assets and Financial Liabilities Schedule: Completed by a Taxable Person that has elected to exclude an element of a gain or loss recognized on Financial Assets and Financial Liabilities owned prior to the Taxable Person's first tax period.

17. Income/losses that will not subsequently be reported in the income statement schedule: Completed by a taxable person who has recognized gains and losses in its financial statements, which will not be recognized in the income statement.

18. Unrealized gains/losses Schedule: Completed by a Taxable Person that has made the election subject to tax on the realization basis and has unrealized gains and/or losses in the Tax Period.

19. Adjustments for unrealized gains/losses from previous tax periods that have been realized in the current tax period schedule: - Completed by a Taxable Person that, due to the application of the realization basis, previously deferred an unrealized gain or loss that has subsequently been realized in the current Tax Period.

20. Attachments Schedule: Includes a list of all documents that may be required to be submitted with the tax return, as applicable. If any documents are not provided, a reason should be given.

 Once each schedule is completed, the taxable person will be redirected back to their Corporate tax return filing that will contain the figures from the completed schedules. The taxable person can access the schedules again to make any necessary changes before submitting the Corporate tax return filing.

To learn more about Corporate Tax Return Guide, book a free consultation with one of the Flyingcolour team advisors.

Disclaimer: The information provided in this blog is based on our understanding of current tax laws and regulations. It is intended for general informational purposes only and does not constitute professional tax advice, consultation, or representation. The author and publisher are not responsible for any errors or omissions, or for any actions taken based on the information contained in this blog.