NEW CORPORATE TAX (CIT) RETURN FORM RELEASED IN THE UAE

This article has been researched and written by the Tax & Compliance Team at Creation Business Consultants. AI has not been used in generating this article.

The official issuance of the Corporate Tax (CIT) return form has significantly improved the UAE framework surrounding tax administration. Overall, this development is forward-thinking in making sure tax is calculated in the correct manner and has complied with UAE tax legislation, which includes the recent CIT introduction.

FILING REQUIREMENTS & DEADLINES 

Taxable income is now required to be reported via the CIT return form which must be filed for periods ending on or after 1 June 2023, for which legal entities, including UAE firms, are also now required to file CIT return form in order to disclose their taxable incomes from the relevant tax period. The taxable income must be identified in the tax return and filed and submitted as required, no later than 9 months after the end of the tax period. There are extensive sections in the return form so that appropriate financial information can be recorded so that the tax can be calculated correctly.

STRUCTURE OF THE CORPORATE TAX (CIT) RETURN FORM

The CIT return form begins with the required taxpayer information, to include the name of the entity, tax registration number (TRN), tax period and accounting base.

KEY SECTIONS OF THE FORM

• Elections Section:

Businesses have choices about excluding overseas permanent establishment (PE) income or providing Small Business Relief, etc. These choices impact the amount of taxable income and tax relief available.

• Financial Summary Section:

This section details the entity’s income, costs, EBITDA, & net profit/loss before tax. These figures are the basis for the tax calculations.

• Tax Computation Section:

This is the most important section because this determines the CIT payable by calculating taxable income by deducting any non-deductible expense including reliefs & exemptions.

• Extra Information Section:

For the sake of transparency and compliance this section requires businesses to submit any other information or evidence needed.

IMPLICATIONS FOR BUSINESSES

The introduction of the CIT Return form consolidated the UAE tax system so that businesses could fulfil their tax obligations and contribute to the economic progress of the nation. Hence, it is incumbent upon every business operating in the UAE to familiarize itself with the new form and ensure a timely and accurate submission thereof to meet its tax obligations.

When companies understand these regulations and abide by them, a strong and transparent tax system in the UAE gets built, which further lends itself to economic growth and stability for businesses.

GET IN TOUCH WITH OUR TAX EXPERTS

The new CIT return form & ensuring tax compliance can be complex. Our team of tax experts is here to help with Tax services in the UAE. Contact us today for personalized assistance & ensure your business meets all its tax obligations accurately & on time. Let us simplify the process for you.

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