Payment and Refund of UAE Corporate Tax.

Introduction – Chapter 14 Payment and Refund of Corporate Tax under the UAE Corporate Tax Law

At the end of every Tax Period, Corporate Tax under the UAE Corporate Tax Law becomes due for a Taxable Person.  This is called Corporate Tax Payable. It can also become due for payment for one or more Tax Periods to the Federal Tax Authority. The UAE Corporate Tax Law provides for guidelines as to the payment of Corporate Tax Liability and prescribed the timeline within which such liability is to be settled. Additionally, there might be a situation where the Taxpayer has paid  Corporate Tax to the Federal Tax Authority which is in excess of the its Corporate Tax Liability due under the Law.

In such a situation, the Taxable Person can file an application for refund of Corporate Tax under the UAE Corporate Tax Law. 

Article 48 – Corporate Tax Payment under the UAE Corporate Tax Law

As per the UAE Corporate Tax Law, within (9) nine months from the end of the applicable Tax Period, or by such other date as the Federal Tax Authority may specify, a Taxable Person must settle any  Corporate Tax liability due under the Law to the Federal Tax Authority.

 Article 49 – Corporate Tax Refund under the UAE Corporate Tax Law

Application to Federal Tax Authority: There may be instances where payment by a Taxable Person to the FTA has been made in excess of the Corporate Tax due under the Law. In such a case, the taxable Person can claim a Corporate Tax Refund It may apply to the Authority for a  refund in line with the requirements of the Tax Procedures Law in the following instances:

1. Withholding Tax Credit: The WTC available to a Taxable Person’s exceeds its Corporate Tax liability, due under the Law. ; or
2. Corporate Tax paid in excess: Any other situation where the Authority is certain that the Taxable Person has paid Corporate Tax in excess of what he is liable to pay as per his Corporate Tax Payable.

Decision by the Federal Tax Authority: The FTA shall inform the Taxable Person via a notification about its decision regarding the application of Corporate Tax Refund filed by such Person.

Have you paid tax in excess of your Corporate Tax Liability, due under the UAE CT Law?