As the September 30, 2025 deadline for corporate tax returns approaches, businesses across the UAE are preparing for their first full compliance cycle under the landmark corporate tax regime. Introduced on January 1, 2024, this legislation marks a turning point, aligning the UAE with global tax practices and ushering in a new era of financial discipline, accountability, and transparency.
Rising compliance pressure
At Tabseer Corporate Services LLC, we have seen firsthand how challenging this shift can be for businesses of all sizes. Firms that miss the deadline face fixed fines, rising monthly penalties, and interest on unpaid liabilities. But the cost of late compliance goes far beyond numbers—it can strain liquidity, disrupt operations, and damage a company’s reputation in an increasingly transparent business environment.
“Unlike VAT, corporate tax filing is highly technical,” explains one of Tabseer’s senior tax consultants. “It demands careful adherence to IFRS standards and strategic decisions that, once made, cannot be reversed. For example, adopting certain methods in the first return could have long-term tax implications if not handled correctly.”
Deadlines differ by fiscal year
Most businesses following the calendar year (Jan–Dec) must file their first return by September 30, 2025. Those with other fiscal years, such as March 31, must file by December 31, 2025. Unlike the initial rollout phase, authorities have clarified that extensions will not be offered again.
Common challenges we see
Many SMEs approach us with concerns about unreconciled accounts, incomplete records, and transfer pricing disclosures. Reconciling multiple years of accounts, establishing accurate opening balances as of January 1, 2024, and ensuring liquidity for tax payments are proving to be major hurdles.
The situation is especially complex for Free Zone businesses. Eligibility for the 0% corporate tax benefit must be carefully assessed from day one. Failing to qualify in the first year means losing the benefit for four years—a risk no company can afford.
More than a deadline—A cultural shift
At Tabseer, we view the September deadline not just as a compliance event but as a catalyst for stronger financial governance. Annual audits, internal controls, and modern financial systems are no longer optional; they are the foundation for resilience and credibility.
“Compliance should not be a last-minute scramble—it must become part of the business culture,” says a Tabseer advisor. “Firms that embed compliance will not only avoid penalties but also gain clarity, control, and investor confidence.”
Key Risks of Missing the Deadline
Escalating penalties: Fixed fines for the first month, followed by increasing monthly charges.
Liquidity strain: Profits on paper but cash flow shortages can prevent timely tax payments.
Reputational damage: Non-compliance weakens trust with investors, lenders, and regulators.
Operational risks: Incomplete records and transfer pricing disclosures expose compliance gaps.
Lost Free Zone benefits: Missing eligibility in year one means losing the 0% regime for four years.
Compliance Checklist from Tabseer Corporate Services
Ensure accounts are audited and reconciled. Verify opening balances as of January 1, 2024. Assess Free Zone eligibility early. Strengthen cash flow planning to ensure timely payments. File ahead of the deadline to avoid FTA portal congestion.
How Tabseer Can Help
At Tabseer Corporate Services LLC, we go beyond filing. We work closely with clients to review records, align strategies with tax law, and ensure timely compliance. Whether you are an SME facing record-keeping challenges or a Free Zone entity navigating eligibility rules, our team is here to guide you every step of the way.
In the UAE’s new tax era, compliance is not just a legal obligation—it’s the price of staying in business. With Tabseer by your side, you can turn this challenge into an opportunity for growth, governance, and long-term resilience.