The UAE’s Federal Tax Authority has updated the UAE Corporate Tax Return on the Emaratax portal, introducing enhanced shareholding disclosure requirements for certain taxable persons. As part of the enhanced filing requirement, certain taxable persons must now disclose additional information relating to a business’s ownership structure, including the details of its Multinational Enterprise(MNE) Group, Immediate Parent Company, and Ultimate Parent Company, together with their countries of tax residency and tax identification Number, where applicable. Previously, the corporate tax return only required taxable persons to confirm whether they were members of a Multinational Enterprise(MNE) Group.
Businesses should review their ownership structure, identify the applicable shareholding disclosure requirements, and compile the necessary supporting details before filing the UAE corporate tax return to ensure compliance with the latest UAE FTA reporting obligations.
In this article, we explain the latest UAE corporate tax update with the new shareholding requirement, who they apply to, and practical steps businesses can take to prepare.
The UAE Federal Tax Authority (FTA) has expanded the information required in the UAE Corporate Tax Return by introducing additional shareholding and ownership disclosure requirements. As part of these updates, certain taxable persons may now need to provide information about their parent entities and multinational group structure while filing the UAE corporate tax Return.
If applicable, a taxable person may be required to disclose the details of:
- Immediate parent company
- Ultimate parent company
- Country of tax residency
- Tax identification Number (TIN)
- Tax registration Number (TRN), where applicable
- Multinational Enterprise (MNE) Group details
Depending on the circumstances of the business, the following details may need to be disclosed:
| Disclosure requirement | Requirement Status |
| Name of the multinational enterprise (MNE) Group (normally the group name as reflected in the consolidated financial statements of the Ultimate Parent Company) | Optional (where applicable) |
| Name of the Ultimate Parent Company | Required |
| Country of tax residency of the Ultimate Parent Company | Required |
| Tax Identification Number/ Tax registration Number of the Ultimate Parent Company | Optional |
| Name of the immediate parent company | Required |
| Country of tax residency of the immediate parent company | Required |
| Tax identification number(TIN)/ Tax Registration Number of the Immediate parent Company | Optional |
For eligible taxable persons, these disclosures form part of the UAE corporate tax filing requirements. Businesses should review these enhanced shareholding disclosure requirements and verify the required ownership information and parent entity information well in advance of filing UAE corporate tax returns to support accurate reporting and compliant submission.
Not every business will be required to complete all of the new shareholding disclosure fields. The applicability of the new shareholding disclosure requirements depends on the ownership and group structure of the taxable person. Businesses should evaluate their organizational structure to determine whether these disclosures are applicable while filing UAE corporate tax returns.
The requirements are relevant for businesses that:
- Are members of a multinational enterprise (MNE) Group
- Have an immediate parent company or ultimate parent company
- Operate as subsidiaries of another entity
- Are members of a UAE or international corporate group
Businesses that are directly owned by individuals and do not have a parent entity or group structure may have limited disclosure obligations. So, all taxable persons should review the latest UAE FTA filing requirements before submitting corporate tax returns to support accurate filing and compliance with the latest FTA requirements.
Why this UAE corporate tax update is important
The latest FTA shareholding disclosure requirements reinforce the importance of keeping accurate ownership records in line with UAE corporate tax compliance. Businesses should review their ownership structure, identify the applicable disclosure requirements, and gather the necessary information before filing UAE corporate tax returns.
Taking a proactive step can help businesses:
- Comply with the latest FTA filing requirements
- Reduce filing delays and compliance risks
- Streamline the corporate tax return preparation
- Maintain accurate ownership and corporate tax records
A Taxable person should obtain complete and accurate information relating to the Immediate Parent Company and Ultimate Parent Company, where the disclosure requirements are applicable, before filing the UAE corporate tax return.
To facilitate accurate and timely UAE corporate tax compliance, businesses should prepare the required ownership information before filing their corporate tax return in the UAE.
Before filing the UAE corporate tax return, businesses should:
- Review and update ownership and shareholding structure
- Identify the immediate parent company and ultimate parent company
- Verify the country of Tax Residency of the parent entities
- Gather the Tax Identification Number (TIN) or other tax registration details
- Review all the information for accuracy and completeness of the information before corporate tax filing submission.
Following this proactive approach, businesses can facilitate a smoother corporate tax filing process and strengthen compliance with the latest FTA disclosure requirements.
Next steps for businesses
Staying updated with the latest UAE corporate tax requirements is essential for accurate and timely compliance. As the FTA continues to strengthen UAE corporate tax reporting, businesses should prepare the required ownership structure and shareholding disclosure requirements in advance to streamline the UAE corporate tax return filing process.
Jaxa Chartered Accountants, an FTA- approved tax agent and leading corporate tax consultant in the UAE, helps businesses understand the latest FTA updates and ensure accurate, compliant UAE corporate tax return filings.
Wrap Up!
The latest FTA shareholding disclosure requirement makes it necessary for businesses to review ownership structure before filing their UAE corporate tax return. If you are unsure whether these disclosure requirements apply to your business, seeking a professional corporate tax consultant and advisor in the UAE is a good option.
Partnering with Jaxa Chartered Accountants, the best accounting and auditing firm in the UAE, as well as an FTA-approved tax agent with 19+ years of experience, helps clients stay updated with the latest FTA regulations.
Our corporate tax advisors assist in:
- Review and verify disclosures before the UAE corporate tax return submission
- Preparation and timely filing of the UAE corporate tax return
- Corporate tax and VAT registration in the UAE
- Emara Tax Portal support
- Assess the applicability of the new FTA shareholding disclosure requirements
- Assisting with Corporate tax health checks before filing
- Corporate tax compliance and advisory services
- Support from an UAE FTA-approved tax agent
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