Filing corporate tax in the UAE is new for almost everyone. Since the Corporate Tax Law was introduced, businesses across the mainland and Free Zones have been navigating their first returns. And with anything new, mistakes are bound to happen.

The truth is, most of these mistakes are avoidable if you know what to look out for. We have talked about some of the most common errors businesses make when filing UAE corporate tax returns and what to do if you make a mistake.

1. Missing the Filing Deadline

One of the simplest yet costliest mistakes is filing late. Businesses have nine months from the end of their tax period to submit a return.

If you delay, penalties start at AED 1,000 for the first offense and increase for repeat violations. Many businesses underestimate how quickly nine months pass, especially when accounts need to be finalized and reviewed.

Tip: You can mark the date in your calendar as soon as your tax period ends. To prevent stress at the last minute, try to prepare well in advance of the deadline.

2. Assuming You Don’t Need to File

A lot of companies think, “We don’t owe tax, so why file?” That’s incorrect.

Even if your tax rate is 0% (like some Free Zone businesses), filing is still mandatory. Dormant companies, startups, or businesses that earned very little during the year must also file.

Remember: Filing isn’t just about paying tax but about reporting your activity to the Federal Tax Authority (FTA).

3. Using the Wrong Tax Period

Another common mistake is submitting the return for the wrong period. Most businesses follow the calendar year, but not all.

If your financial year differs, say, April to March, your filing window will be different. Filing under the wrong period may cause rejection and force you to re-file.

The tip is to double-check your Corporate Tax registration certificate because the tax period is clearly mentioned there.

4. Incomplete or Inaccurate Data

Your return must match your financial statements. If there are gaps or mismatched numbers, your return could get flagged for review.

This happens often when:

• Expenses are recorded incorrectly
• Adjustments for exempt income or non-deductible costs are missed
• Foreign income or related party transactions are skipped

The best way to avoid this is by reconciling your accounts early and reviewing everything before submission.

5. Ignoring Transfer Pricing Rules

Don’t skip transfer pricing. If your company works with related parties, like shareholders, sister companies, or connected businesses, you may need to report these transactions.

Many businesses ignore this step because they think it only applies to large multinationals. But even small companies may need to disclose related transactions.

If you skip this, the FTA may mark your filing as incomplete or non-compliant.

6. Poor Documentation

Filing isn’t just about the numbers you submit online but also about the paper trail behind them.

Businesses often fail to keep contracts, invoices, vouchers, or detailed schedules. If the FTA audits you later, missing documentation can cause serious issues.

Rule of thumb: Keep all supporting records for seven years. You don’t need to submit them right away, but they must be ready if asked.

7. Leaving It All to the Last Minute

Finally, procrastination, the most human mistake. Many companies put off tax filing until the very last month. By then, auditors are busy, accountants are rushed, and errors multiply.

The result? Sloppy filings, missed adjustments, or even accidental non-compliance.

Tip: Treat filing as a process, not an event. Prepare your accounts, check your tax period, gather documents, and review everything step by step.

What If You Make a Mistake?

Made an error in your corporate tax return? Don’t panic.

If you notice something wrong after filing, the FTA allows you to correct it by submitting a Voluntary Disclosure through their online portal. You should do this if:

• You reported less tax than you should have
• You missed important details
• You later found new information that affects your return

Fixing mistakes early usually means lighter penalties, while waiting too long can increase the fines.

Final Thoughts

Next time you file corporate tax in the UAE, keep in mind to avoid the mistakes mentioned above.

Partner with Synergy Auditing to be compliant and avoid mistakes. We at Synergy Auditing can handle corporate taxes in various areas such as fortune 500 conglomerates, small, medium and large enterprises, and family businesses.