A new workshop hosted recently in Abu Dhabi by the Federal Tax Authority (FTA) saw the participation of around 940 business representatives and stakeholders, as the FTA continues to reiterate its call to unregistered corporate taxpayers to expedite the submission of their corporate tax registration applications.
The workshop series is part of the FTA’s ongoing campaign to educate and enable businesses to benefit from the Cabinet Decision to exempt corporate taxpayers and certain categories of exempt persons required to register with FTA from administrative fines – typically resulting from the late submission of a registration application, within the stipulated legal period.
The Abu Dhabi workshop – one of many in-person events being held across the UAE – also defined the rules for determining income subject to corporate tax and clarified the requirements and procedures for compliance with the Corporate Tax Law. In addition to in-person seminars, the FTA is also organising various remote video conference events.
During the workshop, the Authority further confirmed that – in order to benefit from the exemption initiative – corporate taxpayers (or exempt persons required to register) who have registered for the tax must file their tax returns (or annual declarations) within a period not exceeding seven (7) months from the end of the registrant’s first tax period, in order to be exempt from the penalty.
The FTA further clarified that the exemption only applies to the taxpayer registrant’s first tax period (or an exempted person required to register), whether the due date of the first tax return (or first annual declaration) is before or after the start of the new decision’s implementation.
During the workshop, FTA experts provided an in-depth explanation on key aspects of corporate tax, including how to determine and calculate income subject to corporate tax, understanding tax liabilities, and adhering to accounting standards for tax purposes.
Other topics touched on included the preparation of financial statements based on the taxpayer’s applicable accounting standards, the accrual basis of accounting, and the recognition of income when earned and expenses when incurred. Additionally, FTA experts discussed the definitions of financial assets and liabilities, methods of accounting for equity under IFRS, and the application of cost accounting standards.
A demonstration on the registration procedures through EmaraTax, the digital tax services platform, was also provided, as well as the criteria for identifying taxable persons, the applicable rates and tax periods, the mechanism for applying the provisions of the Corporate Tax Law and its associated decisions, and the requirements for compliance with the law. At the conclusion of the workshop, FTA personnel conducted a Q&A session with the workshop participants.
The current phase of the campaign, which began in 2023 and is running across the UAE, addresses various tax topics to introduce the legislation, requirements and procedures for corporate tax compliance. These awareness programmes are designed and orientated to suit each of the main categories concerned, utilising the latest relevant technologies to ensure easy access to information for taxpayers.
The Authority emphasised that the corporate tax awareness campaign is a key component of its comprehensive engagement strategy, aimed at ensuring seamless corporate tax compliance and supporting taxpayers in meeting their tax obligations. The campaign also intends to foster voluntary compliance, built upon a robust procedural and legislative framework that aligns with global best practices.
The FTA urged taxpayers to familiarise themselves with the Corporate Tax Law, Executive Decisions, and Guides available on the FTA’s website.
