Maintaining legal standing, avoiding fines, and preserving reputation requires every registered company to undertake annual compliance in the UAE. From the mainland of Dubai to Ras Al Khaimah Free Zone, businesses fully owned by foreign investors, part of joint ventures, or operating as branches face an intricate yearly maze of submissions, audits, and declarations. This guide aims to provide comprehensive information on company annual filing obligations, corporate tax requirements in UAE, annual return deadline, and constructing a compliance calendar that seamlessly encompasses everything from financial statements submission to statutory audit thresholds and late-filing penalties.
You will receive a full compliance calendar UAE and specific steps to efficiently manage your company annual filing obligations in the UAE.
Who Must File Annual Compliance Reports in UAE?
Companies on the Mainland
- Limited Liability Companies (LLCs)
- Public/Private Joint‑Stock Companies (JSCs)
- Sole Establishments & Civil Companies
- Branches of Foreign Companies
Important Note: All these entities hold licenses with the Department of Economic Development (DED) and are required to submit an Annual Return to the Ministry of Economy (MoE).
Free Zone Entities
- Free Zone Establishments (FZEs)
- Free Zone Companies (FZCOs)
- Branch Offices in Free Zones
Compliance is issued by each Free Zone Authority, like DIFC, Abu Dhabi Global Market, JAFZA, and RAK ICC. These authorities create their own rules but usually follow Mainland requirements.
Exemptions & Simplifications
- Free Zones have Micro-entities that may qualify for no full audit if revenue is lower than AED 3 million and assets under AED 1 million.
- Holding companies that are non-trading still submit a nil Corporate Tax Return and an Annual Return.
- Non-profit organizations bestowed by MOCCAE or DED (e.g., charities) must simplify filings and submit only condensed financial summaries to regulators.
Annual Compliance Snapshot: Key Deadlines at a Glance
| Obligation | Due Date | Governing Body |
| Annual Return | 6 months after FY‑end (e.g. 30 Jun) | MoE (Mainland) / Free Zone Authority |
| Corporate Tax Return | 9 months after FY‑end (e.g. 30 Sep) | Federal Tax Authority (FTA) |
| Financial Statements Submission | With Annual Return or Licence Renewal | MoE / Free Zone Authority |
| Statutory Audit (if threshold met) | By Annual Return date | Registered Auditor / FTA |
| Beneficial Ownership Declaration | 3 months after licence renewal | MoE / Free Zone Authority |
| VAT Return (if registered) | Quarterly by 28th | FTA |
| Payroll & Social Security Contributions* | Monthly by 8th | Ministry of Human Resources & Emiratisation (MoHRE), FTA |
| Trade Licence Renewal | Before licence expiry | DED / Free Zone Authority |
| Immigration & Labour Card Renewal | Before expiry (varies by visa) | GDRFA / MoHRE |
| Import/Export Customs Declarations | Per shipment | Federal Customs Authority |
These employers are referred to as ‘WPS’ under the Social Security for Emirati employees.
- Annual Return / Confirmation Statement
Purpose & Scope
Annual Confirmation Returns, also known as Annual Returns, maintain government relations concerning your company’s records of:
- Registered office address
- Director(s) and manager(s) details
- Shareholder composition and share capital
- Ownership structure (Ultimate Beneficial Ownership or UBO)
Submitting this return updates your corporate profile and helps maintain your good standing.
Detailed Steps
Information to Gather:
- Current company records (articles of association, MoA).
- ID Copies of owners, directors, shareholders, and UBOs.
Ministry Portal Login:
- Mainland companies use the MoE e‑services portal; Free Zones have proprietary systems (e.g., DAFZA, ADGM).
Review & Update:
- Confirm the registered office address is aligned with the Ejari/lease contract.
- Make necessary changes to directors, partners, and shareholders.
- Adjust the UBO register for any changes with name, nationality, ownership percentage, and date of appointment.
Pay Filing Fee:
- Mainland: AED 1,000–AED 2,000
- Free Zones: AED 500–AED 2,500 depending on zone.
Submit & Acknowledge:
- Download the confirmation receipt and store it for audit records.
Late Filing Penalties
- 1,000 AED if filed within 30 days after the deadline
- 5,000 AED if filed after 60 days
- Blocked renewal of the license until overdue documents are submitted
- Corporate Income Tax Return
UAE Corporate Tax Summary
The UAE Corporate Tax (CT) came into effect on June 1, 2023, with the following key features:
- 9% CT on profits surpassing 375,000 AED
- 0% CT on profits up to 300,000 AED (small business relief)
- 25% CT for extractive industries (oil, gas) and branches of foreign banks
Filing Process
FTA Registration:
- Create an account on the FTA e-Services Portal.
- Provide TRN (Tax Registration Number) and business information.
Prepare Computations:
- Adjust financial statements by removing non-deductible expenses and exempt income.
- Group relief is applicable (for tax-grouped entities).
Complete CT Return Form:
- Participating in the submission creates an online form with schedules for income, deductions, and group relief.
- CT computation and financial statements must be submitted as a PDF.
Submit & Pay:
- Submission completed through the online portal.
- Payments are made through FTA-approved banks, UAEFTS, or an e-wallet.
Payment & Amendments
- Payment must be made upon submission.
- Applicable changes can be made within 6 months of the original submission date without penalties.
Common Issues
- Classifying related party transactions incorrectly
- Excluding dividends from the corporate tax base
- Lack of documentation for claiming exemptions
- Financial statements: Audited and Unaudited
Statutory Audit Threshold
Your entity is required to complete an external audit when it’s classified under:
- Annual Revenue > AED 300 million
- Total Assets > AED 150 million
- Employees > 500
Freestanding smaller SMEs do not require an audit, while under all thresholds, subject to Free Zone regulations.
Accepted Standards
- IFRS: Mandatory for public JSCs; accepted for all others.
- UAE GAAP: Permitted for certain Free Zones (e.g., Fujairah, Ajman).
Audit Process
- Engage Licensed Auditor:
- Must be registered with the Ministry of Finance or the Free Zone regulator.
Fieldwork:
- Review ledgers, test internal controls, confirm bank balances, and verify fixed assets.
Draft Report:
- Audit drafts report containing audit findings and management letter with the noted deficiencies.
Final Approval:
- Directors assess, sign off, and finalize the signed-off audited financial statements.
Submission:
- File with MoE or Free Zone portal together with Annual Return.
- Deliver physical copies if required by a particular zone (for example, DED mandates originals on demand).
Document Retention
- Preserve audit files for five years after submission.
- Maintain primary documents (invoices, contracts) for ten years- vital for corporate income tax audits.
- KYC Declarations & Beneficial Ownership
Understanding UBO Compliance
Ultimate Beneficial Owners (UBOs) are people who own or control over 25% of shares or voting rights or have notable influence.
Register Requirements
Maintain Internal Register:
- A company needs to have a UBO register at its head office and must be updated within 14 days of a change.
Annual Submission:
- File annual returns with the MoE or Free Zone, including the UBOs’ details.
Details Needed:
- Title, citizenship, passport/ID number, date of birth, shareholding percent, control mechanism.
Penalties for Non‑Compliance
- First Offense: Written warning issued.
- Second Offense: AED 15,000 fine.
- Subsequent Offenses: AED 30,000 fine and suspension of license.
Best Practices
- Automate change tracking through corporate registry software.
- Annually verify the UBO documents—passport scans, and proof of address.
- Payroll, VAT & Other Periodic Filings
VAT (Value Added Tax)
- Registration Threshold: AED 375,000 taxable supplies; optional at AED 187,500.
- Tax Charged: Standard 5%; can opt for zero-rating.
- Submission Frequency: Quarterly filing through the FTA portal by the 28th of the month following the quarter’s end.
Step-by-Step Guide
- TRN Renewal: Ensure TRN is active and linked to the business bank account for TRN Renewal.
- Upload Transactions: Sync accounting software with FTA API for real-time invoice and purchase record updating.
- Reconcile Input vs Output VAT: Highlight discrepancies.
- Submit Return & Payment: Electronically, and attach the VAT ledger.
Penalties
- Late Submission: AED 1,000 first offense, AED 2,000 repeat.
- Late Payment: 2% of unpaid tax, plus 1% per month up to 300%.
Payroll & Withholding Tax
- Emirati Employees: Wages Protection System (WPS) and social security contributions (12.5% employer share).
- Expatriate employees: No income tax but end-of-service gratuity reporting.
- Withholding tax: certain cross-border services 0-5%, quarterly statements.
Trade and Customs Declarations
- Imports/Exports: Declare through UAE Trade Connect or GUSAD; fee per shipment.
- Customs Duty: Customs duties assess a default of 5% on a majority of goods. Restricted items may attract customs duties of up to 100%.
Penalties for Late or Inaccurate Filings
| Filing Obligation | Penalty Range |
| Annual Return | AED 1,000 – AED 5,000 |
| Corporate Tax Return | AED 1,000 – AED 2,000 + interest |
| VAT Return | AED 1,000 – AED 50,000 + percentage fines |
| Audit Non‑Compliance | AED 5,000 – AED 50,000 |
| UBO Non‑Filing | AED 15,000 – AED 30,000 |
| Licence Renewal Delay | AED 1,000 – AED 3,000 + licence stoppage |
| Customs Mis‑Declaration | Up to 100% of dutiable value + confiscation |
Commercial rates for overdue tax payments can apply to late interest tax payments.
Annual Compliance Cost Breakdown
| Cost Item | Govt. Fee | Accountant Fee | Audit Fee Range | Opportunity Cost |
| Annual Return | AED 1,500 | AED 2,000 | N/A | 3 days admin (AED 4k) |
| Corporate Tax Return | AED 0–2,000 | AED 3,000 | N/A | 2 days admin (AED 3k) |
| Audited Financial Statements | N/A | AED 1,500 | AED 7,000–15,000 | 5 days admin (AED 8k) |
| UBO Declaration | AED 0 | AED 1,000 | N/A | 1 day admin (AED 1k) |
| VAT Return (quarterly) | N/A | AED 1,000/quarter | N/A | 1 day/quarter (AED 1k) |
| Trade Licence Renewal | AED 5,000 | AED 1,500 | N/A | 1 day (AED 1k) |
| Customs Declaration | N/A | AED 500/shipment | N/A | 0.5 day/shipment |
60‑Day Compliance Sprint Checklist
| Day Range | Task | Owner |
| 1–10 | Close prior FY accounts; finalize P&L & BS | Finance Team |
| 11–20 | Conduct statutory audit (if required) | External Auditor |
| 21–25 | File Annual Return + UBO declaration | Company Secretary |
| 26–30 | Prepare & submit Corporate Tax return | Tax Advisor |
| 31–35 | Upload audited/unaudited financial statements | Finance Team |
| 36–40 | Reconcile and file VAT & withholding statements | Accounts Team |
| 41–45 | Renew trade licence & immigration/labour cards | Admin Office |
| 46–50 | Update compliance calendar with new deadlines | Compliance Officer |
| 51–60 | Train staff on updated compliance processes | HR & Compliance Teams |
Common Mistakes & How to Avoid Them
- Missing The Correct Fiscal Year
- Mistake: Select an incorrect year-end, and this is the error that appears.
- Fix: Confirm with MoE or the zone authority the fiscal year and document it in your compliance calendar.
- Unsigned Documents
- Mistake: Omitting director signatures when returns are submitted.
- Fix: Streamline approvals by instituting an e-signature approval workflow.
- Under-Reporting Income
- Mistake: Insufficient bookkeeping due to a lack of transaction oversight.
- Fix: Implement cloud accounting with bank feed reconciliations and monthly close verifications.
- Late UBO Updates
- Mistake: Neglecting to update the beneficial ownership register.
- Fix: Utilize a corporate registry service to alert to UBO changes automatically.
- Currency Conversion Errors
- Mistake: Inconsistent use of exchange rates on AED transactions.
- Fix: Apply the official UAE Central Bank rate for each reporting period.
How Commenda Simplifies Annual Compliance & Tax Filings
Commenda’s unified compliance dashboard detects every compliance deadline within the UAE, from submitting Annual Returns and Corporate Tax to VAT, declaring UBO, renewing licenses, and more. Head to the FTA and Freezone portals to submit the documents directly via e-filing connectors. Pre-filling forms with company data ensures accuracy while automated reminders and AI-driven checks save 80% in admin time, and audit-ready logs with expert support add trust. Commenda streamlines multi-entity calendar management and real-time VAT reconciliation, making annual compliance in the UAE effortless.
To learn how the UAE compliance workflow can be transformed, book a free consultation with Commenda today.
FAQs – Annual Compliance in UAE
Q. What is the late submission penalty for the annual return deadline in the UAE?
Filing after the 6-month grace period results in a penalty of AED 1,000. This amount increases to AED 2,000 if filed more than 2 months after the first penalty is enforced. At this stage, all license renewals will be suspended until the fines are cleared.
Q. Do dormant businesses need to submit annual financial statements for compliance in the UAE?
Dormant entities are required to file a nil Corporate Tax Return alongside an Annual Return confirming no trading activity. Depending on entity type and Free Zone regulations, audit exemptions may also be available.
Q. What is the value of assets or revenue that triggers the requirement for a statutory audit in the UAE?
A business will require an external audit if it has over 500 employees, along with AED 150 million worth of assets or AED 300 million in revenue.
Q. Can I change my fiscal year-end to streamline compliance and filing dates in the UAE?
Companies based on the mainland can apply through the Ministry of Economy for a change in the fiscal year; Free Zone regulations differ—check with your zone’s authorities.
Q. Which documents must be submitted along with the tax return for small businesses in the UAE?
In addition to the UAE company tax return, companies need to include audited financial statements (if audited), unaudited financial statements certified by management, a tax computation schedule, and a reconciliation report, all in PDF.
Q. How is overdue payment interest calculated for corporate tax in the UAE?
For overdue tax repayments, interest is charged at the prevailing Central Bank of UAE commercial loan rate on the overdue tax amount, accruing from the day after the payment was due until the payment is made.
Q. Would my startup be eligible for the micro-entity or small-company criteria, exempting it from full financial statement submission in the UAE?
Some Free Zones grant micro-entity status with no filing requirements for revenues under AED 3 million and assets under AED 1 million; On the mainland, there are no micro exemptions, as full or simplified statements will always be required on file.
Q. Are updates to the beneficial ownership register included in the annual filing bundle, or do they follow a separate deadline in the UAE?
Beneficial ownership declarations must be submitted within three months of renewing the business license, which is often timed with the Annual Return but is technically on a different deadline.
