With corporate tax now a reality in the UAE, businesses must take proactive steps to remain compliant. Failing to do so could result in penalties, reputational risks, and operational challenges.

1. Understand Your Tax Obligations
Start by assessing whether your business is subject to corporate tax, including type of business activity, revenue thresholds, legal structure, and free zone status.

2. Register with the FTA
All taxable persons must register for corporate tax via the Federal Tax Authority (FTA) portal, regardless of their income level.

3. Keep Accurate Financial Records
Reliable, audited financial statements are essential. Records must be retained for at least 7 years and prepared per IFRS standards for larger entities.

4. Determine Taxable Income
Taxable income is calculated from net profit with adjustments for exempt income, unrealized gains/losses, and others.

5. Review Transfer Pricing Compliance
Multinational businesses must maintain documentation, including a Local File and Master File, as per OECD guidelines.

6. Plan Ahead for Tax Returns
Returns must be filed within 9 months of the financial year’s end. Payments are due by the same deadline.