Every organization and individual should understand about How to Prepare Your Business for UAE Corporate Tax in 2025. The following factors can explain it in detail:

✅ 1. Understand Corporate Tax Applicability

• Identify whether your entity is taxable, exempt, or qualifies for zero-rated tax.
• Review the Federal Tax Authority’s (FTA) published guidelines regularly for updates.

✅ 2. Register for Corporate Tax

• Registration with the Federal Tax Authority (FTA) is mandatory.
• Even if your business earns below AED 375,000, registration is required.

FTA Portal: https://tax.gov.ae/

✅ 3. Maintain Proper Accounting Records

• Businesses must maintain audited financial statements.
• Use IFRS-compliant accounting standards to prepare financials.
• Retain records for at least 7 years from the end of the tax period.

Key Documents to Maintain:

• Invoices and contracts
• Profit and loss statements
• Bank statements
• Ledgers and journals
• Tax computation reports

✅ 4. Determine the Taxable Income

• Calculate net profit as per accounting standards.
• Adjust for non-deductible expenses and tax-exempt income.
• Identify applicable tax reliefs, such as small business relief (if under AED 3 million turnover).

✅ 5. Review Transfer Pricing Policies

• If you have related party transactions, ensure that they are at arm’s length.
• Maintain Transfer Pricing Documentation and Master File/Local File as required under OECD guidelines.
• Submit Disclosure Forms with your corporate tax return.

✅ 6. Identify Group Tax Relief and Elections

• Consider forming a tax group with subsidiaries for tax consolidation benefits.
• Transfer losses and assets between group entities as per FTA rules.

✅ 7. Appoint a Tax Consultant or Tax Agent

Working with a registered tax consultant ensures:

• Accurate tax filings
• Timely registration and documentation
• Assistance during audits or notices from the FTA
• Legal interpretation and advisory for complex issues

SK Financial Services offers expert corporate tax compliance and planning tailored to your business.

✅ 8. Train Your Staff on Tax Compliance

• Conduct workshops for your finance and management teams.
• Ensure all departments understand the basics of taxable income, deductible expenses, and documentation requirements.
• Keep an internal checklist of filing dates and audit readiness.

✅ 9. Use an Approved Accounting Software

FTA-approved accounting software streamlines:

• Data accuracy
• VAT and corporate tax reporting
• Real-time compliance alerts
• Integration with e-invoicing systems (if required in future)

✅ 10. Prepare for FTA Audits

• Set up a compliance folder with all required documents.
• Respond promptly to FTA inquiries or notices.
• Conduct an internal or external tax health check regularly.