Deadline looms for first corporate tax returns

The UAE is entering one of the most consequential weeks in its economic journey, with companies across the nation facing the September 30 deadline that goes far beyond paperwork: the submission of the country’s first-ever corporate tax returns.

- Issac John [e-mail]

It is not just a filing requirement but a watershed moment that will test whether businesses are ready for a new era of financial transparency, discipline, and global credibility, a leading tax consultant said, adding, “The countdown is almost over. What happens next will define the country’s economic story for decades to come.”

For decades, the Emirates thrived on the simplicity of its tax free brand. Personal income tax was unheard of, corporate profits escaped levy, and entrepreneurs built global operations in Dubai and Abu Dhabi, knowing their gains would remain untouched. That simplicity helped turn the UAE into the Middle East’s commercial capital, attracting more than 200 nationalities and billions of dollars in capital. But in a world increasingly defined by rules-based transparency, the nation has recalibrated.

Over the past few years, the UAE has systematically implemented a modern fiscal architecture. A five per cent value-added tax, introduced in 2018, became the first nudge. Excise taxes followed, targeting harmful products like tobacco and sugary drinks. In 2023, the landmark federal corporate tax—nine per cent on business profits above Dh375,000—came into effect, designed to align the UAE with global norms while sparing smaller firms.

And from January 2025, the country will also apply a 15 per cent minimum tax on large multinationals in line with the OECD’s Pillar Two rules, ensuring profits generated here cannot be siphoned for taxation abroad.