Small and medium-sized businesses, in particular, required clarification on eligibility criteria, record-keeping expectations, and regulatory interpretations
The UAE’s first full corporate tax filing season concluded with significant milestones for the country’s business ecosystem. The introduction of Corporate Tax (CT) marked a transformational shift from a historically tax-free environment to a structured regulatory framework, requiring businesses to develop new compliance capabilities and adapt internal financial processes.
Strong filing response and digital enablement
The Federal Tax Authority (FTA) reported that more than 640,000 businesses registered and filed corporate tax returns by the 30 September 2025 deadline for financial years ending 31 December 2024. This high level of compliance reflects preparedness and responsiveness across the business community.
The rollout of the EmaraTax digital platform played a central role in driving timely submissions. The system enabled 24/7 digital filing, tax payments, and document uploads, simplifying the overall compliance process for entities across sectors and sizes.
Compliance focus: Awareness, education, and interpretation
The inaugural year placed equal emphasis on awareness-building and compliance execution. Small and medium-sized businesses, in particular, required clarification on eligibility criteria, record-keeping expectations, and regulatory interpretations. Evolving guidelines issued by the FTA throughout the year led organisations to frequently re-examine positions, contracts, and internal accounting treatments to ensure adherence to the most current rules.
Transfer pricing emerges as a priority
Transfer Pricing (TP) requirements became a critical focal point during this season. Many businesses approached advisory firms closer to filing deadlines for assistance with:
• TP documentation and related-party disclosures
• Benchmarking and arm’s-length analysis
• Assessing payments to connected persons, including directors and related family members
The season highlighted the need for early preparation, comprehensive data collation, and proactive application of TP methodologies to avoid last-minute compliance challenges.
Qualifying free zone persons (QFZPs): Audit alignment
Entities seeking to claim Qualifying Free Zone Person (QFZP) status faced mandatory audit requirements. Audited financial statements were required for CT return submissions, and timelines set by several free zones aligned closely with federal filing deadlines. The requirement marked a significant change for companies that previously operated with unaudited internal financials.
Organisational impact: Strengthening internal controls
The introduction of CT prompted many companies to enhance financial systems, related-party transaction tracking, and internal reporting structures. In several cases, the filing process enabled improved governance and performance visibility across business units, cost centres, and intercompany entities.
Preparing for the upcoming year
As businesses progress through the current financial year, the last quarter is considered a critical period for tax planning and compliance readiness. Organisations are encouraged to:
• Conduct year-end financial and documentation reviews
• Assess related-party transactions and TP compliance
• Reconcile data in advance of audit and return preparation
• Align accounting practices with CT requirements and evolving FTA guidance
Proactive preparation is expected to reduce compliance risks, avoid penalties, and enable informed tax-efficient decision-making.
Compliance support for businesses
Professional advisory support is expected to remain essential as companies continue to adapt to the UAE’s corporate tax landscape. BCL Globiz, a member of IR Global, provides end-to-end tax advisory services supported by experienced professionals and advanced compliance technology.
The firm assists businesses of all sizes with Corporate Tax, Small Business Relief eligibility, QFZP assessments, and Transfer Pricing documentation.
Source : Khaleej Times