Common Mistakes in UAE Corporate Tax Filing and How to Correct Them

Filing corporate tax in the UAE is a critical process that requires strict compliance with the UAE Corporate Tax Law. Many businesses end up submitting incorrect corporate tax filings due to common errors such as incomplete documentation, inaccurate classifications, or failure to meet UAE Federal Tax Authority (FTA) requirements.

These compliance gaps not only increase the risk of monetary penalties but also invite closer scrutiny through UAE FTA audits. To remain compliant and safeguard your business, it is essential to file corporate tax returns within the stipulated deadlines as per the UAE Corporate Tax Law.

Partnering with a leading accounting and auditing firm, and a certified UAE FTA tax agent like Jaxa Chartered Accountants, helps businesses avoid errors in corporate tax return filings, achieve compliance, and ensure smooth and timely corporate tax returns in the UAE.

UAE FTA Guidelines: When UAE Corporate Tax Returns Are Deemed Incorrect

The Federal Tax Authority (FTA) in the UAE follows strict review standards, and corporate tax filings that do not comply with the UAE corporate tax law are often incorrect. By identifying and addressing the common causes of incorrect corporate tax returns in the UAE, businesses can minimize compliance risks and ensure smooth approval from the UAE FTA.

1. Faulty or mismatched records

A leading cause of incorrect corporate tax returns in the UAE is such as invalid TRNs, incorrect accounting periods, or errors in ownership details can result in the UAE FTA flagging the return as incorrect.

Solutions:

• Double-check every record and keep accurate documentation to reduce the risk of UAE FTA issues or costly delays in UAE corporate tax filings.
• Conduct pre-filing review for smooth UAE corporate tax filings.
• Work with the UAE corporate tax consultant to ensure UAE FTA-compliant corporate tax filing.

2. Errors in Financial documentation

To comply with UAE corporate tax regulations, businesses must ensure their financial records are prepared in accordance with IFRS (International Financial Reporting Standards). Any mismatches or errors in financial statements can cause the UAE FTA to consider the corporate tax return to be incorrect.

Solutions:

• Hire a certified accountant in the UAE to make sure your financial statements are accurate and comply with strict UAE accounting regulations.
• Audit your financials to ensure that they meet the UAE Corporate Tax requirements.
• Partner with the top accounting firm in the UAE to deal with the smooth UAE Corporate Tax returns.
• Trust an accounting expert in the UAE to prepare and maintain IFRS-compliant financial records for seamless filing and submission of Corporate Tax returns in the UAE.

3. UAE Corporate Tax Deadline Risks

The UAE corporate tax system enforces strict deadlines for filing and submission. Under UAE corporate tax law, missing a corporate tax return may cause the return to be incorrect. Filing corporate tax in the UAE  at the last minute may also lead to additional costs and trigger a UAE FTA audit.

Solutions:

• Monitor UAE Corporate Tax Deadlines: Stay updated on filing dates as per UAE FTA notifications and plan well in advance.
• Avoid Last-Minute Filing: Submit your UAE corporate tax return ahead of deadlines to prevent errors, rejections, or penalties.
• Professional Assistance: Partner with experienced corporate tax consultants in the UAE to ensure accurate and compliant corporate tax filings.
• Use Digital Reminders: Leverage digital tools to schedule notifications for UAE corporate tax filing deadlines and stay compliant.
• Stay Proactive: Consistent planning and timely action help businesses remain compliant with UAE corporate tax law and avoid unnecessary UAE FTA scrutiny.

4. Incorrect or unsupported tax claims and exemptions

Claiming corporate tax exemptions or deductions without supporting documentation may result in corporate tax returns being deemed incorrect in the UAE and trigger additional scrutiny during UAE FTA audits.

Solutions

• Ensure all claimed deductions and exemptions have relevant documentation.
• Engage with UAE corporate tax consultants to verify its eligibility for deductions and exemptions and help to maintain compliance.
• Double-check all deductions and exemptions to avoid rejections or penalties.

5. EmaraTax Portal Challenges

UAE corporate tax filings might be inaccurate due to technical issues, such as unsupported file types, failed uploads, or exceeding Emaratax file size limits. These challenges can cause delays in submitting corporate tax returns or require multiple attempts to complete the returns successfully.

Solutions

• Prepare your accounting team in the UAE to understand Emaratax filing requirements.
• Rely on the top corporate tax consultant in the UAE for precise corporate tax return filings.
• Review all documents to ensure they meet Emaratax upload requirements.
• Verify portal compliance before uploading documents to avoid errors.

The Importance of Tax Consultants in Compliant Corporate Filings in the UAE

Mistakes in corporate tax filings often lead to the UAE FTA considering the return inaccurate, which can trigger non-compliance penalties and financial setbacks. Partnering with a trusted UAE corporate tax consultant ensures accurate, timely filings and full compliance with UAE FTA regulations.

Key Services Offered by UAE Corporate Tax Consultants:

• Accuracy Check: Double-check every company detail, TRN details, and financial records align with IFRS, UAE corporate tax law, and UAE FTA regulations.
• Regulatory Deadline Adherence: Stay aligned with the UAE corporate tax filing schedules.
• UAE FTA Compliance Assistance: Handle all communications and clarifications with the UAE FTA.
• On-Time Filing: Guarantee all UAE corporate tax returns are submitted within the stipulated deadlines.
• Team upskilling: Strengthen the accounting and tax team by keeping them updated on UAE corporate tax changes and UAE FTA announcements.

Guide to Amending Your UAE Corporate Tax Return

• Understand the Cause of Error:  Log in to the EmaraTax portal to confirm the exact issue flagged by the UAE FTA. Engage a corporate tax consultant in the UAE for professional guidance to identify and understand the reason for the mistake that occurred.
• Take Corrective Action: Correct the errors in TRN, financial records, or ownership details.
• Seek Expert Tax Advisory: Engage experienced UAE corporate tax consultants to address the inaccurate corporate tax filings quickly and effectively.
• Submit Revised Return Without Delay: File the corrected corporate tax return within the UAE FTA deadline to avoid penalties.
• Prevent recurring errors: Establish a strong compliance and periodic checks to ensure smooth and error-free UAE corporate tax filings in the UAE.

Jaxa Auditors to Assist!

Handling corporate tax in the UAE requires careful attention, and errors may lead to incorrect filings with the UAE FTA. With accurate documentation, proactive action, and the help of experienced consultants, businesses can stay on track. Engaging with a leading accounting and auditing firm in the UAE, as well as UAE FTA tax agent and auditors having 18+ years of experience and expertise, helps businesses navigate these challenges without hurdles. Our team of corporate tax consultants and advisory experts handles everything from timely UAE corporate tax registration, accurate and timely corporate tax filings, handling UAE FTA queries, and maximizing deductions and exemptions to ensure 100% UAE corporate tax compliance.

Experience seamless UAE corporate tax management with Jaxa Auditors, your trusted advisor for compliance and reporting excellence.

Avoid errors and penalties – Get professional UAE corporate tax assistance from Jaxa Auditors.