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How to Apply for a Corporate Tax Refund in the UAE

It is fundamental to understand the specific regulations of the FTA regarding corporate tax refunds in the UAE. The process is strictly regulated. Companies have to comply with the FTA’s obligations. In this article, we will discuss eligibility and then all the essential steps for applying for a Corporate Tax Refund in the UAE.

What are the eligibility criteria for corporate tax refunds in the UAE?

As per the UAE Corporate Tax Article 49 of tax law, some conditions present the eligibility criteria for a corporate tax refund in the UAE are;

  • Overpaid Corporate Taxes

Businesses in the UAE that have overpaid their corporate taxes can apply for corporate tax refunds due to some issues. It may include mistakes or adjustments in tax liability. This can occur if a company incorrectly pays more than essential based on its financial reporting or adjustments in taxable income.

  • Reliefs and Tax Exemptions

Some businesses or sectors are exempt from corporate tax as per the UAE law. Companies working in these sectors may claim a refund for taxes paid unnecessarily. Tax relief provisions, such as those accessible for free zone entities, can also be suitable for refunds if the tax was mistakenly evaluated or collected.

  • Non-Taxable Income

If a company has paid corporate tax on income that is later considered non-taxable under UAE law, that paid tax can be claimed for a refund. This typically happens when a reconsideration shows that explicit income streams were misclassified as taxable.

  • Correct Tax Filing and Compliance

Companies have to be registered with the FTA so that they are considered to be eligible for a refund. Businesses should file precise and timely tax returns. They must fulfill all reporting compliance obligations. The FTA inspects applications to ensure appropriate documentation is prepared.

What steps are involved in applying for a Corporate Tax Refund in the UAE?

The steps to apply for a corporate tax refund in the UAE are;

1. Access the FTA Portal

Businesses have to first get registered on the FTA portal to apply for a corporate tax refund. If they have already created their account so just login into their account. Companies have to ensure they are listed with the FTA and that their profile is up to date. The gateway is the core platform for submitting tax refund applications in the UAE.

2. Select the Refund Application form

Companies have to select the option to select to go to the corporate tax section of the portal. This option includes several essential resources such as forms associated with tax filing and refunds. It is important to choose the right form for tax refund applications to sidestep processing delays.

3. Fill out the Refund Application 

The refund form requires the detailed information in the application. It includes;

  • Amount claimed
  • Tax return details
  • Cause for the refund request

Any overpaid taxes, exemptions, or non-taxable income have to be evidently defensible. Ensure all facts match the company’s financial statements to avoid differences.

4. Submit Documents

After filling out the application form, businesses have to attach all the supporting documents. It usually includes;

  • Proof of Payment
  • Tax Returns
  • Financial Records
  • Supportive Documents for Exemptions or Reliefs

It is important to make sure the precise and accurate documentation because it is essential for validating the claim.

5. Evaluate and Submit the Application

After attaching all the documents with the corporate tax refund form, businesses have to review the complete application for the sake of precision. Once confirmed, submit the application through the FTA portal.

6. Track Application Status

After submission, businesses have the accessibility to track the status of their refund request on the FTA portal. It is important to keep in mind that FTA may request further information or clarification, which must be fulfilled on time to avoid interruptions in processing. The request usually be handled within 20 business days from the submission of the refund application.

Conclusion

Corporate tax refund in the UAE necessitates businesses to carefully follow the process as we discussed above. Companies can take a sidestep from delays and increase the probability of approval by obeying the legal obligations. Some businesses may face issues regarding submitting the refund application. It is suggested to take assistance from the best consultants such as Corporate Tax UAE. Their team is well-capable to handle all the issues timely.

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