The UAE’s landmark move to introduce a federal corporate tax regime marks a significant shift in the business environment. While the 0% rate on taxable income up to AED 375,000 benefits small businesses, every company must prepare for compliance.
So, what does this mean for you? And more importantly, are you ready for the upcoming deadlines?
📌 What Is UAE Corporate Tax?
As of June 1, 2023, the UAE has implemented a 9% corporate tax on business profits exceeding AED 375,000. This new regime is governed by Federal Decree-Law No. 47 of 2022, and it applies to:
- Mainland companies
- Free zone companies (with certain exemptions)
- Foreign companies with a UAE-based permanent establishment
🗓️ Key Deadlines to Remember
Registration: All taxable entities must register for corporate tax, even if their income is below the threshold.
Filing Date: For companies with a year-end of December 31, the first tax return will be due in 2025.
Payment Deadline: Tax must be paid within 9 months after the end of the financial year.
Filing Start Date: Returns can only be filed after the end of the first tax period — make sure your accounting records are complete and accurate.
⚠️ What Happens If You Miss It?
Failing to register or file on time can lead to penalties from the FTA, including:
- AED 10,000 for late registration
- Additional penalties for incorrect or late returns
- Delays in license renewals and government services
📋 How to Prepare Now
At LYNNX Audit and Assurance FZCO, we help businesses transition smoothly into this new regime. Here are some essential steps to take:
- ✅ Register Early – Don’t wait until deadlines approach.
- 📊 Review Your Financial Records – Ensure accuracy and completeness.
- 🧾 Understand Deductions and Exemptions – These can lower your tax burden.
- 🔍 Assess Group Structures – You may benefit from tax grouping.
- 💼 Seek Professional Advice – Tax law is new and evolving; expert guidance reduces risk.
👨💼 How LYNNX Can Help
We offer complete support for corporate tax registration, filing, planning, and compliance. Whether you’re a small business or a large entity, our services are tailored to your needs.
Moreover, our team ensures your compliance is timely and efficient — helping you avoid penalties and focus on growth.
🟢 Book a free consultation to assess your company’s readiness today.
📞 Contact Us:
LYNNX Audit and Assurance FZCO
📧 info@lynnxauditors.com
📞 +971-508342403
🌐 www.lynnxauditors.com
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