How to Calculate Gratuity in UAE: Your Ultimate Guide to End-of-Service Benefits
16/12/2025
YOUNG AND RIGHT ACCOUNTING & TAX CONSULTANCY
From corporate tax registration to audits and bookkeeping, Young & Right offers personalized solutions that keep your business compliant and stress-free. Let’s take the complexity off your plate—starting with a free consultation.
Book Your Free Consultation
In the dynamic business landscape of the United Arab Emirates (UAE), understanding how to file corporate tax has become essential for companies operating in the UAE, including those in Dubai and beyond. With the implementation of corporate tax policy through the federal Corporate Tax (CT) regime in 2023, businesses must navigate this new framework to ensure tax compliance, avoid penalties, and optimize their tax positions. Whether you're a startup in a free zone, a multinational with a local branch, or an individual entrepreneur crossing revenue thresholds, mastering the corporate tax return filing process is key to your financial health and meeting tax obligations.
At Young & Right, a leading tax agent and accounting consultancy based in Dubai, we've helped countless businesses transition smoothly into this era of taxation in the UAE. Our experts specialize in UAE corporate tax compliance, from registration to advanced strategies like transfer pricing and free zone optimizations. In this comprehensive guide, we'll walk you through everything you need to file corporate tax, drawing on the latest UAE tax laws and corporate tax law guidelines from the Federal Tax Authority (FTA) and Abu Dhabi. By the end, you'll have a clear roadmap for tax return filing in UAE—and if you need hands-on support for file corporate tax returns online or other services, our team is just a call away.
The UAE's shift toward a modern tax system marked a pivotal moment for its economy. Effective for financial years starting on or after 1 June 2023, Federal Decree-Law No. 47 of 2022 established a federal Corporate Tax regime designed to align with global standards while fostering business in the UAE. At its core, the corporate tax rate imposes a competitive 9% on taxable income that exceeds AED 375,000. This threshold provides breathing room for smaller operations, and qualifying entities can even access small business relief to further ease the burden under the UAE CT regime.
Not everything is taxable, though. Exemptions shield government bodies, public benefit organizations, and certain qualifying investment funds from the levy. However, even exempt entities must stay vigilant: if conditions change (e.g., dipping into commercial activities), they could trigger filing obligations and the need to file. This is where proactive advisory comes in—Young & Right's consultants regularly audit client structures to preempt such shifts and ensure smooth implementation of corporate tax.
Filing itself is a streamlined, digital affair via the FTA's EmaraTax portal, emphasizing self-assessment for tax return in the UAE. Businesses calculate taxable income using financial statements adjusted for tax rules, adhering to International Financial Reporting Standards (IFRS) or IFRS for SMEs. Smaller entities might opt for cash basis accounting to simplify return filing, but accuracy is non-negotiable. With records needing retention for seven years, including detailed transfer pricing docs for high-value related-party deals, compliance starts with robust bookkeeping. Note that while the UAE has excise tax on sweetened drinks and value added tax (VAT) imposed by the Federal Tax, these are separate from corporate tax filing.
In Dubai's free zones—like Dubai Multi Commodities Centre (DMCC) or Jebel Ali Free Zone (JAFZA)—the stakes are even higher. Qualifying free zone persons enjoy 0% tax rate on eligible income but must meticulously segregate it from non-qualifying revenue. Missteps here can erode benefits, which is why many turn to Young & Right for specialized UAE tax regulations compliance audits.
Not every entity in the UAE breathes the rarefied air of tax exemption. Understanding your status is the first checkpoint in how to file a corporate tax return. The FTA casts a wide net, but with clear delineations under UAE tax laws.
These are the heavy hitters: UAE-incorporated companies, LLCs, and foreign branches. They're fully immersed in the federal regime, mandating an annual corporate tax return for those required to file. For a Dubai-based tech firm or a mainland retailer, this means annual reconciliation of profits against the AED 375,000 threshold. No exceptions—filing is a legal requirement to maintain good standing.
Freelancers and sole proprietors, take note. If you're a UAE resident conducting business and your revenue tops AED 1 million (minus salary or investment income), you're in. The clock starts ticking for the 2024 calendar year, with taxable income triggering tax returns. Imagine a Dubai consultant hitting that milestone mid-year: their first return aligns with this new reality, blending personal and business finances under scrutiny.
Global players with a UAE footprint—think a European supplier with a warehouse in Dubai—qualify if they have a Permanent Establishment (PE). Tax returns must be filed focusing solely on UAE-sourced income, isolating local ops from offshore activities. This targeted approach prevents double taxation but demands precise income attribution, including foreign tax credits.
Dubai's free zones are tax havens with strings attached. To claim 0% on qualifying income, entities must prove substance (e.g., core income-generating activities in the zone) and stay under de minimis non-qualifying revenue limits. Annual returns require clear segregation, often visualized in schedules. At Young & Right, we specialize in these filings in UAE, ensuring clients like logistics firms in JAFZA maximize exemptions without red flags.
Efficiency for conglomerates: a parent files one consolidated return for the group, streamlining what could be a paperwork nightmare. This is ideal for holding companies in Dubai's DIFC, but it hinges on unified accounting periods and ownership thresholds, with tax reporting on behalf of the group.
Transparent for tax purposes, these pass income to partners. The "responsible partner" shoulders the filing burden if activities generate taxable income. In creative sectors like Dubai's media hubs, this setup is common—ensuring the designated filer has ironclad records is crucial.
Charities, pensions, and the like breathe easy, skipping returns in favor of annual exemption declarations. But lapse into commerce (e.g., a nonprofit selling merchandise), and full filing kicks in. Natural resource extractors might need to file per-activity returns, adding layers of complexity. In the case of a tax group or partnership, tax returns on behalf may apply.
In short, if your entity touches taxable income, filing is mandatory. Exempt? Declare it annually to stay safe. Young & Right's initial consultations often uncover hidden obligations, saving clients from surprises like failure to file.
You can't file tax returns what you haven't registered. Securing a Tax Registration Number (TRN) is the foundational step in Corporate Tax Registration, and it's remarkably accessible—free, 24/7 via EmaraTax, with processing in about 20 business days to register with the Federal Tax Authority.
Everyone taxable: juridical persons upon incorporation, natural persons breaching AED 1 million revenue, and non-residents with PEs. Exempt entities might register if FTA-directed. Pro tip: UAE company branches piggyback on the parent's TRN—no duplicates needed. This is crucial for operating in the UAE and meeting tax regulations.
Act within three months of becoming taxable. For new Dubai incorporations, register post-setup. For ongoing breaches, use the same window. Delays invite AED 10,000 fines, so integrate this into your onboarding checklist for the first tax period.
At Young & Right, we handle registrations end-to-end, especially for expat-owned firms navigating multilingual docs as part of our corporate tax return filing services.
Personalized by type, but staples include:
With TRN in hand, you're primed for filing. Think of it as your business's tax ID badge.
Preparation is 80% of how to file corporate tax successfully. Sloppy prep leads to audits; meticulous work unlocks reliefs and ensures accurate tax reporting.
Standalone or consolidated (for groups), these are your bedrock. Audits mandatory if revenue >AED 50 million or for free zone qualifiers—use UAE-registered auditors per Federal Law No. 41 of 2023. Accrual basis default; cash for <AED 3 million revenue or FTA-approved. Foreign currencies? Convert via UAE Central Bank rates (FTA Decision No. 13 of 2023). Retain everything seven years, plus transfer pricing for >AED 40 million related deals—think inter-company loans in Dubai holdings.
Irrevocable choices shape your corporate tax liability. Small Business Relief? Non-taxable income for <AED 3 million revenue entities. Participation exemption? Shields subsidiary dividends. Evaluate pre-filing; Young & Right's modeling tools simulate scenarios for optimal picks, including foreign tax credits.
Timeliness is mercy in tax land. Submit the tax return within nine months after the tax period end—e.g., December 31, 2024 tax year means September 30, 2025 deadline to file. June 30, 2025? March 31, 2026. First tax period 2023 starters due March 2024; annual rhythm follows the end of the relevant tax period.
Extensions are generally rare, FTA-approved only. Miss it? Penalties loom. For Dubai's fiscal year-end diversity, calendar your deadlines—tools like EmaraTax reminders help. Tax returns within this window are a must, and for groups, it's consolidated at the end of the relevant tax.
EmaraTax is your battlefield—all electronic, Parts A-I, ~25 minutes if prepped. Here's how to file your corporate tax return online through the Federal Tax portal.
FTA's User Manual (screenshots galore) is gold. For complex Dubai setups, Young & Right's portal wizards ensure zero errors in UAE corporate tax return filing.
Schedules aren't optional fluff—they're proof points for CT return.
Skip with '0' if irrelevant. Attachments: Audited FS mandatory where required; optionals like TP docs, foreign tax proofs. Explain omissions. For partnerships, the responsible partner handles this on behalf of the group.
Tax return and pay with the return—or installments if elected with liability. EmaraTax options: bank transfer, card. Apply for refund if you overpaid. The deadline syncs with nine months after the tax period, ensuring file corporate tax returns within time.
For Dubai cash-flow managers, this integration minimizes friction—Young & Right advises on installment strategies for seasonal businesses.
Federal Decree-Law No. 28 of 2022 doesn't mince words:
These apply in the case of a tax lapse, emphasizing why tax returns must be filed promptly.
Young & Right's mantra: Audit-proof your filings. We've turned potential AED 50k fines into seamless compliance for Dubai clients.
In the UAE, the UAE government has introduced a clear corporate tax framework to promote transparency and compliance, but terms like corporate tax filing and corporate tax return filing in UAE can sometimes cause confusion. While they overlap, corporate tax filing encompasses the broader compliance journey, whereas corporate tax return filing focuses on the key submission step. Understanding this distinction helps businesses meet their obligations efficiently and avoid penalties.
At Young & Right, we pride ourselves on being your trusted partner in navigating the complexities of UAE corporate tax. As Dubai's go-to accounting and tax consultancy, our certified experts provide tailored corporate tax services to ensure seamless compliance, minimize liabilities, and maximize your business's growth potential. From startups to multinationals, we handle every detail so you can focus on what you do best.
Navigating how to file corporate tax in the UAE is a rite of passage for Dubai businesses—challenging yet conquerable with the right guide. From registration to payment, this framework balances fairness with fiscal responsibility, positioning the UAE as a global contender under tax regulations imposed by the Federal Tax Authority and Abu Dhabi.
At Young & Right, we're more than consultants; we're your Dubai tax allies. Whether decoding free zone nuances or streamlining group filings, our certified pros deliver peace of mind for all your tax return in UAE needs.
Let Young & Right handle your corporate tax registration and return filing end-to-end—so you stay compliant, avoid penalties, and stay focused on running your business in Dubai and across the UAE.
Talk to a Corporate Tax Expert
