As we approach the end of the year, we would like to summarise some of the important UAE Corporate Tax Updates. Tax Submission Deadlines and Future Tax Requirements to help you stay compliant and prepared for 2025.
Key Corporate Tax Deadlines
First Tax Submission Extension:
Companies incorporated on or before June 2023 have an extended tax filing deadline of 31 December 2024.
Submission Periods by Financial Year:
| Financial Year | Submission Period |
| 1 June 2023 – 31 May 2024: | 1 June 2024 and 28 February 2025 |
| 1 January 2024 – 31 December 2024 | 1 January 2025 and 30 September 2025 |
| 1 April 2024 – 31 March 2025 | 1 April 2025 and 31 December 2025 |
Tax Residency Considerations
Any Companies registered outside of UAE but effactively managed and controlled in the UAE is considered to be a Tax Resident and will be subject to UAE tax for worldwide income. Click here to read more
Economic Substance Reporting periods
Discontinuation: ESR is no longer required for the period starting 1 January 2023. If you received a penalty for non-compliance during this period, you may request a refund from the FTA.
Retroactive Compliance: ESR notifications or annual reports are still required for companies operating from 1 January 2019 – 31 December 2022.
Record Retention: Keep all ESR-related documentation for six years as FTA audits increase.
Qualifying Free Zone Companies: Free Zone entities aiming for a 0% Corporate Tax Rate must demonstrate adequate substance through income-generating activities. Contact us for tailored guidance on establishing a compliant tax structure.se send us an email if you would like to receive a Tax Residency Flowchart to help you determine your tax status.
New Requirement for 2026: Mandatory E-Invoicing for B2B and B2G Transactions
By July 2026, the UAE will fully transition to a digital tax system, requiring e-invoicing for all B2B and B2G transactions. This shift aligns with global tax standards.
E-invoicing refers to the electronic creation, submission and storage of invoices in standardised formats like XML or JSON. They also have to be sent through Accredited Service Providers to the FTA. VAT Registered businesses will need to include their VAT number on the e-invoice.
Potential challenges:
- Real time transmission
- Integration with FTA systems
- Digital signing and document validation
- Adhering to both e-invoicing and VAT registrations
Benefits:
- Faster processing
- Reduced errors and improved environmental impact
