In the UAE, companies should take the following steps to prepare for corporate tax:
Keep ready all financial documents, such as financial statements, commercial invoices, contracts, bills of lading, VAT invoices, etc.
Review the UAE’s corporate tax laws and regulations to ensure compliance and check if any change in the financial year is required.
Plan on tax grouping and do the corporate structuring accordingly.
Appoint a tax agent or a tax consultant if the company is not familiar with the tax laws and regulations.
Keep records of all transactions, including invoices and receipts, as they will be needed for tax filing.
Keep all the documents and records for a minimum of seven years for future reference.
Companies that don’t have a proper accounting system should get suitable accounting software and get it done as per International Accounting Standards.
Check if financial statements are being audited by an external auditor to ensure compliance with International Accounting Standards and rules and regulations of each regulatory authority.
Get Tax Residency Certificate for your company to avoid double taxation in other countries.
Set aside funds to pay any taxes owed to avoid penalties for late payment.
Make use of the online e-services provided by the Federal Tax Authority (FTA) to file and pay taxes.
Schedule the tax filing deadline and make sure the company meets the deadline.
Businesses not under VAT could start by applying for TRN numbers well ahead of June 1.
The above steps are general guidelines and the actual process may vary depending on the company’s specific circumstances. It is always recommended to consult with a tax professional or accountant for more specific advice.