Dubai: The Federal Tax Authority (FTA) has reiterated the need for Taxable Persons who qualify for the Small Business Relief to fulfill their obligations under the Corporate Tax Law for each tax period. This includes the requirements of registering for Corporate Tax, submitting simplified tax returns, and maintaining comprehensive records to verify the accuracy of the information provided in their tax returns or any other required documents. These records are crucial for the FTA to confirm Revenue, Taxable Income, and eligibility for Small Business Relief concerning Corporate Tax purposes.

According to Emirates News Agency, the FTA has urged Taxable Persons and exempt entities required to register to submit their Corporate Tax returns or annual declarations and settle any Corporate Tax within nine months following the end of their tax period or financial year. The Authority highlighted the importance of early preparation, which involves gathering all necessary documentation to complete Corporate Tax returns and ensuring timely payment of any Corporate Tax due. Such preparation aids in adhering to tax legislation, allowing taxpayers to efficiently meet their obligations and avoid penalties for late submission or other non-compliance issues.

The FTA clarified that businesses with a financial year ending on December 31, 2025, must submit their Corporate Tax returns and pay any due Corporate Tax by September 30, 2026. Eligible businesses are required to elect to apply for Small Business Relief through their Corporate Tax returns. The eligibility for relief does not exempt businesses from filing a Corporate Tax return, but it allows for a simplified tax return process, reducing the amount of required information.

The Authority further explained that Small Business Relief considers an eligible resident person as having no taxable income for Corporate Tax purposes if their revenue does not exceed AED3 million for the relevant tax period and all previous periods. Eligible Taxable Persons must provide evidence to the FTA that their revenue has not surpassed the Small Business Relief threshold during relevant tax periods.

Abdulaziz Mohammed Al Mulla, Director General of the FTA, emphasized the Authority's dedication to enhancing services according to international best practices, offering extensive support to the business community, and facilitating compliance with tax legislation, including the Corporate Tax Law and its procedures, with precision, efficiency, and ease. He noted that Corporate Tax registration, tax return submissions, and payments are available 24/7 through the EmaraTax digital platform, which offers a straightforward filing process. Taxable persons can submit returns directly via the platform or seek help from FTA-approved tax agents listed on the Authority's website.

The FTA also noted that the records and supporting documents required in connection with a Corporate Tax return may vary based on the taxpayer's business activities. However, essential records must be maintained, including transaction records during the tax period, asset records with acquisition and disposal details, liabilities records, and records of shares or ownership interests at the end of the tax period. The Authority emphasized the importance of reviewing the Corporate Tax Law, relevant implementing decisions, and available guidance on the Federal Tax Authority's website.