Corporate Tax Periods and Change of Tax Period in UAE


Navigate Corporate Tax Periods and Change of Tax Period in UAE with expert insights. Learn about the evolving tax landscape and the flexibility in adjusting tax periods. As the UAE charts a course toward a diversified economic future, marked by innovative reforms, the journey of tax evolution continues. With the introduction of corporate tax in the UAE in June 2023, following the VAT implementation in 2018, the UAE stands at the crossroads of transformation and progress. Alliance Prime, a trusted name in accounting and tax consultancy, brings you a comprehensive look into the corporate tax landscape and its implications. In this article let’s discuss about Corporate Tax Periods and Change of Tax Period in UAE.

The Shift Towards Corporate Tax

Embracing a diversified revenue strategy, the UAE has embarked on a significant milestone with the introduction of corporate tax. Building on the foundation laid by the VAT implementation in 2018, the nation’s commitment to innovation and reform is highlighted through this tax evolution.

Determining the Corporate Tax Period

For businesses navigating the corporate tax landscape, understanding the tax period is paramount. The corporate tax period is intricately tied to the financial year, aligning with the Gregorian calendar or a 12-month span reflecting a company’s financial statements. This alignment streamlines tax return filing and compliance.

Meeting Submission Deadlines

Article 51 of the Corporate Tax (CT) law emphasizes the importance of timely filing. Taxable persons are obligated to submit their returns within prescribed guidelines, ensuring compliance and transparency. The submission deadline falls within nine months from the conclusion of the relevant tax period or as directed by the authority.

Illustrating Corporate Tax Periods

Let’s delve into two scenarios to illustrate the corporate tax period in practice:

  1. Financial Year Ending on May 31st: The inaugural corporate tax period spans from June 1, 2023, to May 31, 2024. The deadline for return filing is set at a maximum of February 28, 2025. This timeline underscores the significance of aligning your tax strategy with your financial year.
  2. Financial Year Ending on December 31st: In this scenario, corporate tax’s influence begins on June 1, 2023, and extends to the subsequent financial year starting on January 1, 2024. The tax period encompasses January 1, 2024, to December 31, 2024, with a return filing due date by a maximum of September 30, 2025.
Flexibility in Tax Periods

Businesses have the flexibility to adapt their tax periods to align with commercial realities. For instance, shifting from a conventional January-December tax period to March-April can be undertaken upon request by the taxpayer/business. This change requires valid commercial reasons and is subject to regulatory approvals.

Get Expert Insights from Alliance Prime

Navigating the intricacies of corporate tax in the UAE demands expertise and up-to-date knowledge. Alliance Prime stands ready to guide you through these changes, providing comprehensive Corporate Tax Consultancy in UAE. Our experienced team understands the nuances of tax legislation and can help ensure your compliance while optimizing your financial strategy.

Why is Alliance Prime the best Tax Consultancy in Dubai?

Alliance Prime is a leading provider of auditing, accounting, taxation, and advisory services in the UAE. Our expert team will guide you through the complex laws and regulations of UAE, including Corporate Tax, VAT, Excise Tax, Accounting and Bookkeeping, ESR, Financial Advisory, ERP, etc. We stay up-to-date with the latest changes in laws and regulations in the UAE. If you’re looking for reliable and professional auditing, accounting, taxation, and advisory services in the UAE, look no further than Alliance Prime. 

To Book a Free Consultation, contact us on: at- +971 58 825 7795 or Email us at:- [email protected]

Leave a Reply

Your email address will not be published. Required fields are marked *

Get your 1st consultation for FREE