A UAE company asks what it needs to do to comply with UAE corporate tax. What do you tell them?
What the interviewer wants to hear
- Register for corporate tax and obtain a tax registration number
- Determine the tax period and filing deadline
- Prepare IFRS-based financial statements and compute taxable income with adjustments
- Review related party transactions and transfer pricing
- Check reliefs and exemptions such as small business relief or free zone status
Model answer
I would start by confirming they are a taxable person, which most UAE companies are, and help them register for corporate tax on EmaraTax by the deadline that applies to them. Their tax period normally follows their financial year, and the return and payment are due within nine months after it ends. They need financial statements prepared under IFRS, and in some cases audited, as the starting point. From accounting profit we compute taxable income by making adjustments: adding back non-deductible items such as fines and part of entertainment costs, removing exempt income like qualifying dividends, and applying interest limitation rules where relevant. Related party and connected person transactions must be at arm’s length, with documentation where required. Then I check reliefs: small business relief if revenue is low enough during its availability period, free zone status, or group options. Finally I set up a calendar and record-keeping so compliance is routine.
Can you answer it under time pressure?
Take a timed medium round and get scored on every answer.
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