▶️Avoid Big Mistakes in UAE Corporate Tax Filing: Lessons from an FTA Officer Query

Recent query letters from the Federal Tax Authority (FTA) highlight the scrutiny applied during tax return assessments. Two recurring issues in corporate tax submissions are claiming non-compliant "Tax Losses brought forward" and submitting incomplete financial statements.

Understanding Ministerial Decision No. 114 of 2023 and the operational differences between Full IFRS and IFRS for SMEs will help keep your business compliant and penalty-free.

Key Observations from the FTA Query

The FTA assessment note reveals two critical stumbling blocks:

• Tax Losses Brought Forward Must Be NIL in Year 1: For an entity's initial tax period under the corporate tax regime, no tax losses exist from earlier periods to carry forward. Historical accounting losses accrued prior to entering corporate tax cannot be brought forward as tax deductions.

• Financial Statements (FS) Must Meet IFRS Standards: An informal spreadsheet or summarized profit-and-loss sheet is not acceptable. Under Ministerial Decision 114/2023, taxable persons must prepare a complete set of IFRS-compliant financial statements with comparative figures, detailed notes, and the signature of an authorized representative.

What Constitutes a Complete Set of FS?

• Statement of Income

• Statement of Other Comprehensive Income

• Balance Sheet (Statement of Financial Position)

• Statement of Changes in Equity

• Statement of Cash Flows

• Comprehensive Notes / Disclosures

▶️Need Expert Assistance?

Navigating these changes can be complex. MF Khan & Associates is here to assist you with expert chartered accountancy services in both the UAE and India.

UAE corporate tax,FTA UAE,UAE corporate tax filing,Dubai corporate tax,UAE tax law,UAE business owners,FTA notice,Dubai Business,dubai tax,uae taxation,corporate tax in uae malayalam,Corportate tax in uae,dubai,dubai free zone,CA,mfkhan & assocaites,ifrs for smes,corporate tax filing uae,ضريبة الشركات في الإمارات,阿联酋公司税,迪拜公司税,UAE Körperschaftsteuer,how to file uae corporate tax,corporate tax filing uae malayalam,uae corporate tax registration,UAE,Dubai

📌Connect With Our Tax Experts

This information is provided by CA M.F.KHAN – Tax Expert.

For expert chartered accountancy services tailored to your international needs, connect with us: www.camfkhan.com