3. General Ledger
The General Ledger is a detailed document that shows the entire financial activities in your company. It acts as the main accounting book and it backs the figures in your financial statements. A properly maintained general ledger ensures accuracy and makes the audit process easier.
4. Bank Statements
Bank statements for all business accounts held during the financial year are crucial. These documents show what your enterprise earns, spends, and the way money moves, so the FTA can compare the numbers you have reported to the actual ones. It is worth that your bank statements are current and any differences have been resolved before you submit them.
5. Revenue and Expense Records
A detailed record of all revenues and expenses is necessary to support the numbers that you show in your financial statements. This includes:
- Invoices Issued: Copies of all sales invoices issued during the tax period.
- Receipts and Bills: Records of all the purchases and expenditure made.
- Contracts and Agreements: Copies of contracts with clients, suppliers, and other stakeholders.
Keeping of proper records in an organized and accurate manner makes all figures reported verifiable and in accordance with tax regulations.
6. Fixed Asset Register
A Fixed Asset Register is required in case your company has assets including property, machinery, or equipment. This paper includes a table that contains all the company assets, their purchase prices, the depreciation of the assets and their present book values. It is essential for claiming depreciation as a deductible expense and for providing transparency regarding asset management.
7. VAT Records (If Applicable)
In the case of businesses registered under the value added tax (VAT) system it is necessary to include:
- VAT Returns: The copy of all the VAT returns filled during the tax period.
- Payment History: Document of payments of VAT.
- Tax Registration Number: TRN- The number that the FTA assigns to you in order to pay VAT.
These documents ensure consistency between VAT filings and corporate tax disclosures and help avoid discrepancies that could lead to audits or penalties.
8. Supporting Schedules
Depending on your business activities, additional schedules may be required:
- Interest Expense Calculations: To figure out the deductibility of interest expenses, particularly when it is above the thresholds established by the FTA.
- Carry forward Loss Schedules: For businesses with accumulated tax losses, these schedules detail the amount of loss carried forward to offset future taxable income.
- Exempt Income Documentation: If your company earns income from exempt sources, provide documentation to substantiate these claims.
- Related-Party Transaction Disclosures: For businesses engaged in transactions with related parties, detailed disclosures are necessary to comply with transfer pricing regulations.
9. Transfer Pricing Documentation
For businesses involved in cross-border transactions with related parties, Transfer Pricing Documentation is essential. This includes:
- Transfer Pricing Disclosure Form: A form detailing related-party transactions.
- Master File: Provides an overview of the multinational enterprise’s global operations.
- Local File: Contains detailed information on local operations and financials.
Maintaining comprehensive transfer pricing documentation is crucial to demonstrate compliance with international tax standards and to avoid potential audits or penalties.
10. Other Evidence
Additional documents may be necessary based on your business structure and activities:
- Ownership Charts: To illustrate the company’s ownership structure.
- Declarations for Tax Reliefs: To claim any available tax reliefs or exemptions.
- Free Zone Compliance Proof: For businesses operating in free zones, evidence of compliance with free zone regulations.
These documents support your tax filings and validate your eligibility for various tax benefits.
Filing Deadline
Your corporate tax return is due within nine months of your financial year. The earliest tax return is to be filed by 30th September, 2025 to businesses, whose financial year ends on 31st December, 2024. It is important to meet this deadline to avoid fines and interest.
Consequences of Non-Compliance
Failure to make your corporate tax return within the time frame may lead to:
- Penalties: Starting from AED 500 per month for late filing, increasing to AED 1,000 per month after the first year of non-compliance.
- Interest Charges: On unpaid taxes, as determined by the FTA.
- Loss of Tax Reliefs: Inability to claim certain exemptions or deductions.
- Audits and Scrutiny: Triggering FTA audits, leading to additional scrutiny and potential fines.
Conclusion
It is essential to ensure that you file your corporate tax return on time and correctly to ensure that you remain in compliance and without unnecessary penalties. Making sure you have the documents ready beforehand and kept abreast of the latest tax rules; you can find your way through the filing process without any nervousness.
In case you are confused about how to file your corporate tax return or require some help with it, you can contact us at Parsh.ae. We would offer high quality services to cater to all your accountancy, bookkeeping, audit, VAT, and many other needs. We will assist you in keeping up to date and concentrating on the development of your business.