Most companies in the UAE have now completed their very first corporate tax return by 30th September 2025. Since the filing deadlines are designed based on each company’s financial year-end, some entities are still in the process of preparing and filing their returns. Based on the experiences of those who have already completed the process, several key lessons can be drawn to help others fulfill their upcoming corporate tax requirements more effectively.

1. Early Preparation Is Crucial

Many businesses underestimated the level of groundwork required for corporate tax readiness. Companies that began early by assessing their tax impact, updating accounting systems, and ensuring the availability of accurate financial data were better positioned to file on time.

In contrast, those who delayed their preparation faced multiple challenges. Some were held up waiting for audited financial statements, while others encountered last-minute system issues. Ultimately, this led to penalties for late submission and delayed tax payments.

2. The Importance of Clear Record-Keeping

Another major lesson was the importance of maintaining complete and accurate records. The Federal Tax Authority (FTA) requires businesses to keep supporting documentation for at least seven years, including contracts, invoices, and transfer pricing records. Proper documentation not only ensures compliance but also provides confidence in case of future FTA reviews or audits.

3. Understanding Tax Adjustments and Exemptions

Businesses quickly realized that calculating taxable income is not simply a repetition of accounting profit. Several adjustments such as for disallowed expenses, exempt income, and unrealized gains—must be made to determine the correct tax base.

For those claiming the Qualifying Free Zone Person benefit, sufficient documentation is required to substantiate the claim. The entity must also ensure that all substance requirements are properly fulfilled to continue enjoying the benefit.

4. Transfer Pricing Compliance Became a Priority

The first tax cycle also brought significant attention to transfer pricing compliance. Many multinational and even local business groups had to prepare transfer pricing documentation for the first time. Companies are now required to record transactions with related parties and connected persons at arm’s length prices.

Entities that failed to maintain the necessary transfer pricing documentation faced difficulties justifying that their related-party transactions met the arm’s length principle.

5. Digital Readiness and FTA Portal Familiarity

The FTA’s online portal played a central role in the submission process. Companies realized the importance of digital readiness ensuring correct login credentials, updated registration details, and proper integration between accounting systems and the FTA platform.

Some entities faced challenges because their legal type was registered incorrectly. Companies that did not address this issue early struggled to meet their compliance requirements during the filing process.

Final Thoughts

The first corporate tax return in the UAE was more than just a compliance requirement.it was a valuable learning experience for businesses across all sectors. It underscored the importance of timely planning, accurate record-keeping, and seeking professional guidance.

Engaging qualified tax advisors helped many businesses interpret the new law, apply exemptions correctly, and ensure compliance with complex provisions, minimizing the risk of errors and penalties.

Ultimately, this first filing cycle highlighted that corporate tax compliance is an ongoing process, not a one-time exercise. Companies should now review their accounting systems, intercompany transactions, and internal controls to ensure smoother and more efficient filings in the future.

We should all learn from the past and get ready for the next cycle because early preparation is the key to resolving most issues before they arise.