First Tax Period UAE Corporate Tax: Examples and 6 to 18 Month Rule

The first tax period is considered as the initial financial or fiscal year for which a business is required to file a UAE Corporate Tax return. The clock starts from when the tax applies to the business and ending on the business’ tax year.

Example:

1. Business with a calendar financial year (ending 31 December)
   • First tax period: 1 January to 31 December of the relevant year
2. Business with a non-calendar financial year
   • First taxation period runs from the CT start date to that entity’s chosen year-end
3. Newly incorporated business
   • First tax period generally runs from:
     • Date of incorporation or commencement of business
     • Until the chosen finanial year end. You can select a period of first financial year for minimum of 6 months and maximum of 18 months