UAE Corporate Tax Return — EmaraTax CT Filing

Confirm the client's legal structure (sole establishment, LLC, FZ-LLC, freelancer permit) and verify FTA registration status. Determine whether the entity is a natural person, a juridical person, or a Qualifying Free Zone Person (QFZP). Check that a Tax Registration Number (TRN) has been issued via EmaraTax and that the financial year end is on record — this dictates the CT return deadline (9 months after FY end).

Establish total revenue for the tax period. For natural persons, confirm whether turnover exceeds the AED 1,000,000 threshold (below which no CT obligation exists). For all resident persons, check Small Business Relief eligibility: revenue must be AED 3,000,000 or less, the entity must not be a QFZP, and SBR must be actively elected on the CT return — it is not automatic. Document the election decision and its effect on loss carry-forward availability.

Classify all bank statement entries and accounting records into taxable income, exempt income, deductible expenses, and non-deductible items. Apply the UAE-specific rules: entertainment is 50% deductible; personal owner expenses are fully non-deductible; government fines (FTA, RTA, DED penalty notices) are non-deductible; WPS salary credits are employment income, not business income. Flag related-party transactions for transfer pricing review and identify any Islamic finance items (Murabaha, Wakala profit) that require reclassification.

Prepare the formal CT computation following the statutory steps in Federal Decree-Law No. 47 of 2022: start from accounting profit (IFRS basis), apply mandatory adjustments, deduct exempt income (qualifying dividends, participation exemption), add back non-deductible expenditure, apply the thin capitalisation cap on net interest (30% of EBITDA or AED 12 million, whichever is higher), and apply any loss carry-forward (capped at 75% of taxable income). Apply the nil-rate band on the first AED 375,000 and the 9% rate on the remainder. For QFZP entities, segregate qualifying income (0%) from non-qualifying income (9%).

Translate the computed figures into the EmaraTax CT return form fields. Confirm the SBR election checkbox is set correctly (or confirm it is not selected if SBR is not being claimed). Cross-check the taxable income, tax payable, and payment details against the working paper. For QFZP filers, ensure audited financial statements are attached. Flag any Tier-2 items — QFZP determination, transfer pricing, thin capitalisation, or group relief — for licensed tax agent sign-off before submission.

Submit the CT return through EmaraTax before the deadline (9 months after FY end) and settle the tax liability. Confirm receipt of the FTA acknowledgement. Retain all records for the mandatory 7-year period. Set a calendar reminder for the next tax period registration deadline and monitor for any FTA penalty notices or correspondence requiring response.