Dubai: Looking ahead, the Federal Tax Authority (FTA) predicts that April will be a crucial month as it prepares to receive 80,000 tax returns from small to medium-sized businesses (SMEs).
“This month, we witnessed two cycles where large companies have submitted their returns. Later in April, we’ll have 80,000 companies file their returns, who are based on the quarterly cycle,” Al Bustani said. “This is an important month for us.”
Companies can either file their returns on a monthly or quarterly basis, depending on their size. Larger corporations tend to file monthly, whilst smaller businesses tend to submit their tax returns on a quarterly basis.
Al Bustani issued a warning for these smaller companies: “[They] need to know to comply, and submit their returns early to avoid fines,” he said. “They shouldn’t wait until the last minute.”
According to the senior official, many companies wait until the 28th day of the month to file their taxes, which is the last legal day on which they can do so.
Sometimes, however, their payment is delayed or not received by the FTA on time, and they are fined as a result.
“Companies need to plan ahead, well in advance,” Al Bustani said.
