Corporate taxation has boosted international confidence, attracting more businesses to establish operations in the UAE
Countdown to September 30: UAE businesses rush to finalise tax returns
It is the start of a long-term transition to more transparent financial governance
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5 MIN READ
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The September 30 deadline for filing corporate tax is just weeks away, and many companies are still finalising records to ensure compliance. Missing the cut-off could result in fines and penalties, prompting a last-minute push among businesses to align processes.
Industry experts highlight that common queries remain around documentation, taxable income calculations, and electronic filing procedures. To avoid errors, they advise businesses to review financial statements carefully, reconcile outstanding entries, and seek professional guidance where required.
Compliance matters
“With the UAE’s first corporate tax filing deadlines approaching, businesses must finalise financial statements in line with tax rules,” says Alia Noor, Tax Agent and Associate Partner, Taxation and Compliance at Ahmad Alagbari Chartered Accountants.
She explains that audited accounts are mandatory for companies with revenue above Dh50 million and for all Qualifying Free Zone Persons (QFZPs) under full IFRS, while smaller entities may rely on management accounts.
Noor adds that businesses should confirm their eligibility for small business relief or free zone status, ensuring that supporting documentation, such as revenue records, bank statements, and contracts, is properly retained to withstand a Federal Tax Authority (FTA) review.
“Transfer Pricing (TP) compliance is equally vital, with related-party and connected-person transactions benchmarked to the arm’s length standard and disclosed through the required TP forms,” she says.
What businesses must do now
Taxation advisors warn that rushing through the final stages increases the risk of misstatements and penalties and even disqualification from tax reliefs.
“Companies should ensure that any payments made to connected persons, such as shareholders, directors, or related parties, are appropriately benchmarked to satisfy the arm’s length principle,” says Priju Dominic, CEO and Founder of Dominic & Partners.
“It is equally important to ensure that opening balances from the non-taxable previous year are accurately carried forward, as they form the foundation of the 2024 tax position.”
Meanwhile, Dr Lalit Khatri, VP – Business Development, at FACTS Computer Software House offers a clear checklist.
“First, lock a clean trial balance for FY 2024. Reconcile revenue to VAT filings, verify TRNs, and map book-to-tax adjustments in your ERP so tax codes flow correctly. Close open intercompany items, document related-party pricing, and prepare the transfer-pricing disclosure that’s filed with the return,” he advises.
“Finally, diarise your corporate tax return and payment date – nine months after year-end. For calendar-year filers, that’s September 30, 2025.”
Adding to this, Nirav Shah, Director of Fame Advisory, cautions businesses to pay attention to the mechanics of filing itself.
“Business owners and companies need to ensure return is filed in time and taxes are paid before the end of September. Since the Emara tax portal does not have the facility to download the return filed, we recommend keeping screenshots of all details filed and saving them with supporting documents. This allows companies to justify the position adopted.”
He adds that because the system requires manual data entry, cross-verification is essential to avoid errors. Companies, Shah says, should also retain proper supporting documents, both electronically and physically, for future reference.
He notes that Fame Advisory has developed a tool, Tax Mate, to help companies organise records and maintain a back-up of tax positions adopted.
Bridging the IFRS gap
One of the most significant challenges for companies lies in aligning International Financial Reporting Standards (IFRS) with the UAE corporate tax requirements.
“Challenges arise because IFRS and tax rules do not always align,” Noor says. IFRS allows flexibility in revenue recognition, expenses, and fair-value adjustments, while the tax law requires exclusions such as unrealised gains and non-deductible costs. Another issue is that IFRS permits functional currency reporting, whereas the FTA requires AED.
“Accountants bridge these gaps by preparing reconciliations from IFRS profit to taxable income and ensuring mandatory disclosures, especially for related-party transactions,” Noor explains.
Shah emphasises that the new regime makes IFRS compliance non-negotiable. “The UAE corporate tax law has made it mandatory to use IFRS as the accounting standard. Until recently, companies were not fully adopting IFRS. Now it’s not optional; so ensure that the books are aligned.”
Dr Khatri highlights the practical implications. “The hardest part of aligning IFRS with the UAE corporate tax is timing: provisions, impairments, and revenue recognition under IFRS don’t always match tax deductibility. Depreciation rates and capitalisation policies also diverge. Bridge the gap with a monthly tax close, post book entries per IFRS, then run standard book-to-tax schedules in ERP, track deferred tax, and keep support ready for auditors and the FTA.”
Dominic agrees, stressing that proactive documentation and close coordination with auditors during the closing process is essential to avoid disputes later.
Closing the books right
The compliance push is not only about submitting forms on time, but also about ensuring that the underlying numbers are sound.
For many businesses, this means greater scrutiny of routine accounting practices and more discipline around documentation.
With both the FTA and auditors expected to scrutinise disclosures, experts recommend adopting a tax close mindset, treating tax reporting as a monthly or quarterly process rather than an annual rush.
Turning to technology
They highlight the growing role of technology in easing compliance. Mostafa A. Elrefaey, Founder and CEO of Integrity Accounting Services (IAS), says, “AI-powered tools and cloud-based platforms are transforming how companies handle compliance in the UAE. These systems automate data collection for transfer pricing studies, handle complex regulations like DMTT (domestic minimum top-up tax) with precision, and maintain complete audit trails.”
He explains that in practice, this translates to fewer human errors, smoother reporting processes, and real-time visibility into compliance status.
“For businesses adjusting to the new tax regime, these tools make the difference between scrambling at the last minute and moving forward with confidence and strategic clarity,” Elrefaey points out.
What lies after the deadline
While the immediate focus is on meeting the September 30 deadline, taxation experts caution against treating corporate tax purely as an annual filing task.
“The smart ones are weaving tax planning into their core business strategy,” Elrefaey says, adding, “That means implementing automated compliance systems, establishing clear transfer pricing policies from the outset, and committing to transparent financial reporting standards. When businesses embrace tax compliance as a strategic advantage rather than a burden, they’re not just surviving the new regulations, they’re building stronger, more resilient operations that position them for sustainable future growth.” ■
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