UAE Corporate Tax Compliance in Dubai Production City

UAE Corporate Tax Compliance in Dubai Production City

Corporate Tax Registration with the Federal Tax Authority (FTA)

All Dubai Production City companies must register for Corporate Tax with the FTA, irrespective of:

• Revenue or profitability

• Size or nature of business

• Eligibility for the 0% Corporate Tax rate

• This obligation applies even to newly incorporated, dormant, or loss-making companies.

Qualifying Free Zone Person (QFZP) – 0% Corporate Tax Eligibility

To avail the 0% Corporate Tax rate, a Dubai Production City entity must qualify as a Qualifying Free Zone Person (QFZP).

Key Conditions to Qualify Include:

• Maintaining adequate economic substance in the UAE

• Conducting Qualifying Activities, commonly relevant to media production, publishing, content creation, design, printing, and related services

• Earning Qualifying Income, such as income from:

• Non-UAE customers

• Other Free Zone entities

• Complying with UAE transfer pricing regulations

• Preparing and maintaining audited financial statements

• Avoiding Excluded Activities, unless within permitted thresholds

Annual Corporate Tax Return Filing

All Dubai Production City companies are required to file an annual Corporate Tax Return, even if:

• All income qualifies for the 0% rate

• The company has incurred losses

• No Corporate Tax is payable

Key Filing Timeline:

• The Corporate Tax Return must be filed within 9 months from the end of the financial year

• Any payable tax must be settled within the same deadline

• Accurate financial reporting and proper classification of qualifying and non-qualifying income are critical for compliance.

Accounting Records & Audited Financial Statements

Dubai Production City Free Zone companies must:

• Maintain proper books of accounts

• Prepare IFRS-compliant financial statements

• Retain accounting and tax records for at least 7 years

• Audited financial statements play a vital role in:

• Supporting Qualifying Free Zone Person status

• Corporate Tax filings

• Transfer pricing and regulatory reviews

Transfer Pricing & Related Party Transactions

If a Dubai Production City company transacts with:

• Related entities

• Group companies

• Shareholders or connected persons

• It must ensure compliance with arm’s length pricing principles and maintain appropriate transfer pricing documentation, along with mandatory disclosure forms where applicable.

Penalties & Non-Compliance Risks

Non-compliance with UAE Corporate Tax regulations may lead to:

• Financial penalties

• Loss of Free Zone tax benefits

• Increased scrutiny or audits by the FTA

• Reassessment of prior tax periods

How Gupta Accountants Supports Dubai Production City Businesses

At Gupta Accountants, we provide comprehensive corporate tax solutions tailored for Dubai Production City companies, including:

• Corporate Tax registration with the FTA

• Assessment of Qualifying Free Zone Person eligibility

• Corporate Tax return preparation and filing

• IFRS accounting and financial reporting

• Audit coordination and support

• Transfer pricing advisory and documentation

• Ongoing Corporate Tax compliance and advisory services