Starting a business in the UAE is an exciting journey, but it comes with its own set of responsibilities – and one of them is corporate tax filing in Abu Dhabi. Whether your business is just starting out with low sales or has grown beyond expectations, understanding the corporate tax filing process is essential for all legal person companies established in the UAE.
Here’s some good news for small businesses:
If your annual revenue is less than AED 3 million, you can claim Small Business Relief (SBR) under Article 21 of the Corporate Tax Law. This means you don’t need to file a detailed corporate tax return, and your business won’t be considered taxable income.
But don’t overlook the details – the definition of revenue includes more than just sales. For example, revenue from assets sold or dividends received also counts. So, if your business has AED 2.5 million in sales but sells an asset worth AED 600K, your total revenue becomes AED 3.1 million, making it necessary to file a full corporate tax return in Abu Dhabi.
Don’t risk a wrong claim for SBR – understanding how to calculate and report revenue accurately is key to staying compliant with UAE tax laws.
Key Steps in Corporate Tax Filing in Abu Dhabi
Here’s what you need to do to successfully file your corporate tax return in Abu Dhabi:
- Verify Eligibility for Small Business Relief (SBR)
- Check if your business qualifies for SBR based on your total revenue (less than AED 3 million).
- If eligible, SBR can significantly simplify your tax filing process, as no detailed tax return is required.
- Determine Your Total Revenue
- Ensure you understand that revenue isn’t just from sales; it also includes income from assets sold, dividends, and other financial sources.
- Make sure your total revenue is calculated accurately to avoid exceeding the AED 3 million threshold.
- Prepare Required Documentation
- Gather all necessary financial statements, including sales reports, asset sales, and any dividends received.
- Keep detailed records to ensure your filing is compliant with UAE tax regulations.
- File Your Corporate Tax Return
- For businesses with revenue exceeding AED 3 million, you’ll need to file a detailed corporate tax return.
- Ensure all data is accurate and submitted on time to avoid penalties.
- Seek Professional Guidance
- Tax filing can be complicated, and making mistakes can lead to financial penalties. It’s always best to consult experts who can guide you through the process.
Why Choose Al Tawakkal for Your Corporate Tax Filing in Abu Dhabi?
At Al Tawakkal, we’re here to help guide you through the complexities of corporate tax filing in Abu Dhabi and ensure your business is fully compliant with UAE tax regulations. Here’s how we can assist:
- Expert Guidance: We provide in-depth knowledge on how to calculate and report your business revenue accurately.
- Document Preparation: We ensure your tax filing is complete and in compliance with the latest regulations.
- Timely Filing: We handle everything from start to finish, ensuring your corporate tax return is filed on time, every time.
- Personalized Support: Every business is unique. We offer tailored solutions for your specific corporate tax needs.
Contact us now for more information on corporate tax services or visit our website at Al Tawakkal
