As part of its comprehensive campaign to raise awareness of Corporate Tax among business sectors, the UAE’s Federal Tax Authority (FTA) held its third workshop of the year in Ras Al Khaimah, dedicated to familiarizing participants with the rules for determining taxable income under the Corporate Tax framework.
The FTA highlighted that this workshop forms part of a series of events, delivered both virtually and in person across all emirates of the country, which will continue throughout 2025. The FTA noted that more than 2,300 participants have benefited from the three consecutive workshops recently held in Dubai, Abu Dhabi, and Ras Al Khaimah, including representatives from business sectors and stakeholders from both the public and private sectors involved in taxation.
Registration key to benefit from certain exemptions
During the workshop, the FTA emphasized the importance for UAE entities subject to Corporate Tax, who have not yet registered, to promptly submit their registration applications to benefit from the cabinet’s decision regarding the initiative to exempt Corporate Tax payers and certain categories of exempt persons, who are required to register with the FTA, from administrative penalties resulting from late submission of registration applications beyond the legally prescribed deadline.
The FTA also clarified that entities subject to Corporate Tax in the UAE who have completed their tax registration to benefit from the exemption initiative must submit their tax returns within a period not exceeding seven months from the end date of the registrant’s first tax period to meet the exemption conditions from penalties in accordance with the decision.
The authority also indicated that the exceptional condition for benefitting from the exemption – namely, submitting the tax return (or annual declaration) within a period not exceeding seven months from the end date of the tax period – applies only to the first tax period of the entity subject to tax (or the exempt person required to register), regardless of whether the due date for the first tax return (or first annual declaration) falls before or after the effective date of the new decision.
Read: UAE issues guidance on process of double taxation relief
FTA seeks to promote compliance
During the workshop, the UAE’s FTA affirmed its commitment to the continuous enhancement of services provided to support and assist business sectors, in line with its plans to establish a tax environment that encourages compliance. It seeks to achieve this through ongoing awareness initiatives targeting all categories of taxpayers, aimed at familiarizing them with tax legislation and procedures using various methods that ensure the information is clear and easy to apply.
During the workshop, representatives of the authority provided a comprehensive explanation of the UAE Corporate Tax Law and its related decisions, the requirements for compliance with the law, the registration procedures via the “EmaraTax” digital tax services platform, the criteria for determining taxable persons, clarification of the applicable rates and tax periods, as well as the mechanism for implementing the provisions of the law.
Furthermore, the workshop highlighted the rules for determining taxable income under Corporate Tax, including how it is identified and calculated, the method for calculating the tax due, and the specific accounting standards applied for Corporate Tax purposes.
It also covered the preparation of financial statements in accordance with the accounting standards adopted by the taxable person, the accrual-based accounting principles whereby income is recognized when earned and expenses when incurred, as well as an overview of financial assets, financial liabilities and the treatment of equity in accordance with their definitions under International Financial Reporting Standards (IFRS). The applicable accounting methods adopted by the taxable person and the cost accounting method were also addressed.
