UAE Corporate Tax Compliance, Filing & FTA Procedures Glossary

UAE Corporate Tax

UAE Corporate Tax is a federal tax levied on business profits, effective from 1 June 2023. It applies at a standard rate of 9% on taxable income exceeding AED 375,000 and governs mainland, Free Zone, and foreign entities conducting business in the UAE.

Federal Tax Authority (FTA)

The Federal Tax Authority is the UAE government body responsible for administering, assessing, collecting, and enforcing federal taxes, including Corporate Tax, VAT, and Excise Tax. The FTA issues guidelines, accepts tax returns, conducts audits, and imposes penalties for non-compliance.

Corporate Tax Registration

Corporate Tax Registration is the mandatory process of enrolling a business with the FTA through the EmaraTax portal. All taxable persons, including mainland and Free Zone entities, must register within prescribed timelines to avoid penalties and ensure lawful tax compliance.

Taxable Person

A Taxable Person is any individual or legal entity subject to UAE Corporate Tax. This includes UAE-incorporated companies, Free Zone entities, foreign businesses with a permanent establishment in the UAE, and individuals conducting licensed commercial activities.

Corporate Tax Filing

Corporate Tax Filing refers to submitting an annual tax return to the FTA, declaring taxable income, exemptions, adjustments, and tax payable. Filing is mandatory even if no tax is due and must be completed within nine months after the tax period ends.

Tax Period

A Tax Period is the financial year for which corporate tax is calculated. It may follow a calendar year or an approved financial year. Accurate identification of the tax period ensures correct filing, reporting, and compliance with FTA deadlines.

Tax Return

A Corporate Tax Return is an official declaration filed electronically with the FTA. It includes financial results, taxable income calculations, adjustments, and tax payable. Incorrect or late filing may lead to penalties and increased audit risk.

Emara Tax Portal

EmaraTax is the official online platform of the Federal Tax Authority used for tax registration, return filing, payments, refunds, and correspondence. Businesses must use EmaraTax to manage all UAE Corporate Tax compliance activities.

Taxable Income

Taxable Income is the net profit after allowable deductions and adjustments, calculated according to UAE Corporate Tax Law. It forms the basis for determining corporate tax liability and must be supported by proper accounting records and documentation.

Accounting Standards

Accounting Standards such as IFRS govern the preparation of financial statements used for corporate tax calculations. Compliance with recognized standards ensures transparency, accuracy, and consistency in tax reporting to the FTA.

Allowable Deductions

Allowable Deductions are business expenses permitted to be deducted from income for tax purposes. These expenses must be incurred wholly and exclusively for business activities and supported by proper documentation under UAE Corporate Tax regulations.

Disallowed Expenses

Disallowed Expenses are costs that cannot be deducted for corporate tax purposes. These include fines, penalties, non-business expenses, and certain related-party payments that do not meet arm’s length requirements.

Corporate Tax Rate

The UAE Corporate Tax Rate is 0% on taxable income up to AED 375,000 and 9% on income exceeding this threshold. Special rates and exemptions apply to qualifying Free Zone persons and exempt entities.

Tax Payment

Tax Payment refers to settling the corporate tax liability with the FTA after filing the tax return. Payments must be made within the prescribed deadline to avoid interest and administrative penalties.

Tax Assessment

A Tax Assessment is an evaluation by the FTA to verify the accuracy of a filed tax return. The authority may accept, amend, or reassess the declared taxable income based on reviews or audits.

Tax Audit

A Tax Audit is an examination conducted by the FTA to ensure compliance with UAE Corporate Tax laws. It may involve reviewing accounting records, tax returns, and supporting documents to confirm accuracy and completeness.

Record Keeping

Record Keeping involves maintaining accounting and tax records for at least seven years. These records support corporate tax filings, audits, and assessments and are mandatory under UAE Corporate Tax regulations.

Financial Statements

Financial Statements include the balance sheet, income statement, and cash flow statement. They form the basis for corporate tax calculations and must accurately reflect the business’s financial position.

Transfer Pricing

Transfer Pricing governs transactions between related parties to ensure they are conducted at arm’s length. UAE Corporate Tax law aligns with OECD principles and requires documentation and disclosure for qualifying transactions.

Related Party

A Related Party includes individuals or entities with ownership, control, or influence over a business. Transactions with related parties must comply with arm’s length pricing to avoid tax adjustments and penalties.

Arm’s Length Principle

The Arm’s Length Principle requires related-party transactions to be priced as if conducted between independent parties. This principle prevents profit shifting and ensures fair taxation under UAE Corporate Tax rules.

Transfer Pricing Documentation

Transfer Pricing Documentation includes local files and master files that justify pricing of related-party transactions. Certain businesses must maintain this documentation and submit disclosures to the FTA.

Permanent Establishment (PE)

A Permanent Establishment is a fixed place of business through which a foreign entity conducts business in the UAE. Having a PE may trigger UAE Corporate Tax obligations for foreign companies.

Withholding Tax

Withholding Tax applies to certain payments made to non-residents. Although currently set at 0% in the UAE, reporting obligations may still apply under Corporate Tax Law.

Double Taxation Avoidance Agreement (DTAA)

A DTAA is a treaty between the UAE and another country to prevent income from being taxed twice. It provides tax relief, reduced withholding rates, and clarity on tax residency.

Tax Residency

Tax Residency determines where an entity or individual is considered resident for tax purposes. In the UAE, residency depends on incorporation, management, and economic presence.

Tax Residency Certificate

A Tax Residency Certificate is issued by UAE authorities to confirm tax residency. It is commonly used to claim benefits under double taxation treaties.

Corporate Tax Exemption

Corporate Tax Exemption applies to specific entities such as government bodies, qualifying public benefit organizations, and approved investment funds, subject to meeting regulatory conditions.

Free Zone Entity

A Free Zone Entity is a business registered within a UAE Free Zone. Such entities may qualify for preferential tax treatment if they meet Corporate Tax and substance requirements.

Qualifying Free Zone Person

A Qualifying Free Zone Person is a Free Zone entity that meets conditions to benefit from a 0% tax rate on qualifying income while remaining compliant with UAE Corporate Tax law.

Economic Substance Regulations (ESR)

ESR require businesses to demonstrate adequate economic presence in the UAE. Compliance supports Corporate Tax filings and reduces regulatory and penalty risks.

Compliance Deadline

A Compliance Deadline is the last date for completing tax registration, filing returns, or making payments. Missing deadlines results in administrative penalties imposed by the FTA.

Penalties

Penalties are fines imposed for late registration, incorrect filings, non-payment, or failure to maintain records. UAE Corporate Tax penalties can accumulate quickly if non-compliance continues.

Voluntary Disclosure

Voluntary Disclosure allows businesses to correct errors or omissions in tax returns. Early disclosure can reduce penalties and demonstrates good compliance behavior.

Tax Deregistration

Tax Deregistration is the process of removing a business from the tax system after cessation, liquidation, or restructuring. It must be completed through EmaraTax within specified timelines.

Corporate Tax Consultant

A Corporate Tax Consultant provides professional guidance on registration, filing, compliance, audits, and tax planning under UAE Corporate Tax law.

Tax Advisory Services

Tax Advisory Services assist businesses in understanding tax obligations, managing risks, optimizing structures, and ensuring compliance with FTA regulations.

Compliance Framework

A Compliance Framework is a structured system of policies, procedures, and controls designed to ensure ongoing adherence to Corporate Tax laws.

Tax Risk Management

Tax Risk Management involves identifying and mitigating risks related to audits, penalties, incorrect filings, and regulatory changes.

Tax Optimization

Tax Optimization involves legally structuring business operations to minimize tax liability while remaining compliant with UAE tax laws.

Corporate Governance

Corporate Governance refers to internal systems and controls that ensure accountability, transparency, and regulatory compliance in tax matters.

Financial Transparency

Financial Transparency ensures accurate and honest reporting of income and expenses, supporting tax compliance and audit readiness.

Group Relief

Group Relief allows transfer of tax losses between qualifying group companies, subject to ownership and compliance conditions.

Tax Group

A Tax Group allows multiple UAE entities to be treated as a single taxable person, simplifying filing and improving tax efficiency.

Loss Carry Forward

Loss Carry Forward allows businesses to offset future taxable profits with past losses, reducing corporate tax liability under approved conditions.

Capital Assets

Capital Assets are long-term assets such as equipment and property used in business operations. Depreciation rules apply for tax purposes.

Depreciation

Depreciation allocates the cost of capital assets over their useful life and affects taxable income calculations.

Intellectual Property Income

Intellectual Property Income arises from patents, trademarks, and copyrights and may have specific tax treatment under UAE Corporate Tax.

Foreign Source Income

Foreign Source Income is income earned outside the UAE. Its tax treatment depends on business structure and treaty benefits.

Corporate Tax Compliance

Corporate Tax Compliance ensures full adherence to UAE tax laws through proper registration, filing, payment, documentation, and audit readiness.

Corporate Tax Assessment Notice

A Corporate Tax Assessment Notice is an official communication issued by the FTA informing a taxpayer of assessed tax payable, adjustments made, or penalties imposed. It follows a review or audit and must be responded to within prescribed timelines.

Tax Reassessment

Tax Reassessment occurs when the FTA re-evaluates a previously filed tax return due to errors, omissions, or new information. Reassessments may result in additional tax, penalties, or refunds, depending on the findings.

Administrative Penalties

Administrative Penalties are fines imposed by the FTA for non-compliance, including late registration, late filing, incorrect returns, or failure to maintain records. Penalties can accumulate daily, making timely compliance essential.

Late Filing Penalty

A Late Filing Penalty is charged when a corporate tax return is not submitted within the prescribed deadline. Even nil-tax or loss-making entities are subject to penalties if filing obligations are not met.

Late Payment Penalty

A Late Payment Penalty applies when corporate tax dues are not paid by the specified deadline. Penalties increase with time, highlighting the importance of timely tax payment after filing.

Tax Objection

A Tax Objection allows taxpayers to formally challenge an FTA decision, assessment, or penalty. Objections must be submitted within the legal timeframe with supporting documentation and justification.

Tax Appeal

A Tax Appeal is a legal process initiated if a taxpayer disagrees with the outcome of an objection. Appeals may be escalated to tax dispute resolution committees or courts.

Tax Dispute Resolution

Tax Dispute Resolution refers to mechanisms available to resolve disagreements between taxpayers and the FTA, including objections, appeals, and settlement procedures.

Compliance Review

A Compliance Review is an internal or external evaluation of a business’s adherence to UAE Corporate Tax laws, identifying gaps, risks, and corrective actions.

Corporate Tax Health Check

A Corporate Tax Health Check is a proactive review of registration, filings, calculations, and documentation to ensure full compliance and audit readiness.

Accounting Records

Accounting Records include ledgers, invoices, receipts, and journals that support financial statements and corporate tax calculations. Proper maintenance is mandatory under UAE tax law.

Chart of Accounts

A Chart of Accounts is a structured listing of all accounts used in bookkeeping. Proper classification supports accurate tax reporting and simplifies FTA audits.

Trial Balance

A Trial Balance summarizes all ledger balances at a given time. It is used to prepare financial statements and verify the accuracy of corporate tax computations.

Financial Audit

A Financial Audit is an independent examination of financial statements to ensure accuracy and compliance with accounting standards. Audited accounts strengthen corporate tax filings.

Audit Trail

An Audit Trail is a chronological record of financial transactions. It helps the FTA trace reported figures back to source documents during audits.

Tax Filing Accuracy

Tax Filing Accuracy ensures that income, expenses, adjustments, and tax calculations are correctly reported, reducing audit risks and penalties.

Corporate Tax Documentation

Corporate Tax Documentation includes tax returns, computations, financial statements, transfer pricing files, and correspondence with the FTA.

Compliance Calendar

A Compliance Calendar tracks deadlines for registration, filing, payment, ESR submissions, and disclosures, helping businesses avoid penalties.

Corporate Tax Planning

Corporate Tax Planning involves structuring business operations efficiently to minimize tax liability while remaining fully compliant with UAE tax laws.

Business Restructuring

Business Restructuring involves reorganizing ownership, operations, or legal structure to improve efficiency or manage corporate tax exposure.

Substance Requirements

Substance Requirements mandate that businesses maintain real economic activity, management, and resources in the UAE to support tax filings and Free Zone claims.

Economic Presence Test

The Economic Presence Test evaluates whether a business has sufficient operational activity in the UAE to justify its tax position.

Corporate Tax Strategy

A Corporate Tax Strategy aligns tax compliance, planning, and risk management with long-term business objectives.

Compliance Risk

Compliance Risk refers to exposure arising from incorrect filings, missed deadlines, or regulatory misunderstandings, potentially leading to audits and penalties.

Tax Risk Assessment

A Tax Risk Assessment identifies potential compliance gaps and tax exposures, enabling corrective measures before FTA intervention.

Corporate Tax Advisory

Corporate Tax Advisory provides expert interpretation of UAE tax laws, assisting businesses with registration, filing, audits, and planning.

Regulatory Updates

Regulatory Updates include new laws, Cabinet Decisions, and FTA guidance that affect corporate tax obligations and compliance procedures.

Tax Policy Manual

A Tax Policy Manual documents a company’s approach to tax compliance, governance, and risk management, supporting transparency and audit defense.

Corporate Governance Framework

A Corporate Governance Framework establishes internal controls and accountability for financial reporting and tax compliance.

Internal Controls

Internal Controls are systems and procedures designed to ensure accurate accounting, prevent errors, and support compliant tax filings.

Corporate Tax Computation

Corporate Tax Computation involves calculating taxable income, applying exemptions, and determining final tax payable as per UAE law.

Compliance Certification

Corporate Tax Computation involves calculating taxable income, applying exemptions, and determining final tax payable as per UAE law.

Tax Filing Support

Tax Filing Support assists businesses with preparation, review, and submission of corporate tax returns to the FTA.

FTA Correspondence

FTA Correspondence includes notices, queries, and requests issued through EmaraTax, requiring timely and accurate responses.

Tax Authority Notification

Tax Authority Notification involves informing the FTA of changes such as business closure, restructuring, or ownership changes.

Corporate Tax Registration Deadline

The Corporate Tax Registration Deadline is the final date set by the FTA to register for tax. Missing it results in fixed administrative penalties.

Nil Tax Return

A Nil Tax Return is filed when no corporate tax is payable. Filing is still mandatory to remain compliant with UAE tax regulations.

Tax Filing Confirmation

Tax Filing Confirmation is proof generated by EmaraTax confirming successful submission of a corporate tax return.

Tax Payment Receipt

A Tax Payment Receipt is evidence of corporate tax payment made to the FTA and should be retained for records and audits.

Compliance Monitoring

Compliance Monitoring involves ongoing review of tax obligations to ensure continued adherence to UAE Corporate Tax law.

Corporate Tax Review

A Corporate Tax Review evaluates filings, calculations, and documentation to ensure accuracy and compliance before submission.

Audit Readiness

Audit Readiness ensures that records, reconciliations, and explanations are available to respond effectively to FTA audits.

Tax Exposure

Tax Exposure is the potential additional tax, penalties, or interest arising from non-compliance or incorrect reporting.

Corporate Tax Advisory Firm

A Corporate Tax Advisory Firm provides end-to-end services including compliance, filing, audits, and strategic tax planning.

UAE Tax Compliance Services

UAE Tax Compliance Services support businesses in meeting corporate tax, VAT, ESR, and FTA procedural requirements.

Corporate Tax Filing Deadline

The Corporate Tax Filing Deadline is nine months after the end of the tax period. Late filing results in administrative penalties.

Compliance Assurance

Compliance Assurance provides confidence that tax obligations are met accurately and consistently.

Corporate Tax Best Practices

Corporate Tax Best Practices include timely registration, accurate filings, proper documentation, and proactive advisory support.

End-to-End Tax Compliance

End-to-End Tax Compliance covers the full lifecycle of corporate tax obligations, from registration to audits and dispute resolution.

UAE Corporate Tax Compliance Services

UAE Corporate Tax Compliance Services help businesses remain fully compliant with registration, filing, FTA procedures, audits, and penalty management, ensuring peace of mind and regulatory certainty.