Let’s explore the most common CT filing mistakes made by UAE businesses and how you can avoid them. 

1. Inaccurate Bookkeeping Leads to Costly CT Filing Mistakes 

Many businesses rush into filing without verifying if their books are accurate and up-to- date. Inconsistent records, missing invoices, and untracked cash payments can all lead to misreported income or overstated expenses, two of the most frequent CT filing mistakes. 

Tip: Keep monthly reconciliations, maintain digital copies of supporting documents, and ensure your financial records match your business activity. 

2. Misunderstanding Your Tax Period and Deadlines 

One of the more subtle CT filing mistakes comes from confusing the financial year with your tax period. Your first tax period depends on the date of your company’s incorporation, not necessarily the calendar year. 

For example, a company incorporated in January 2024 may have a filing deadline by July 2025. Getting this wrong can mean missing your submission window and, with it, the chance to benefit from the FTA’s 2025 penalty waiver. 

Filing late not only leads to fines but also signals poor internal controls, something no growing business wants on record. 

 3. Misclassifying Expenses as Business Deductions 

Not all expenses are tax-deductible. Yet businesses often include non-deductible or personal expenses like fines, entertainment costs, or capital items as deductions. These CT filing mistakes may result in overclaiming expenses and underpaying tax, increasing the risk of FTA scrutiny. 

Tip: Clean expense classification protects you from compliance risks and also improves decision-making around profitability. Use a clear chart of accounts and consult with a tax expert to ensure each expense is properly classified. 

4. Ignoring Related-Party Transactions 

If your company deals with related entities such as sister companies or owners, you're likely subject to transfer pricing rules. Failing to disclose these transactions or maintain proper documentation is a serious CT filing mistake. 

Tip: Disclose related-party transactions, prepare a transfer pricing report if applicable, and document pricing justifications to avoid penalties.  

5. Overlooking Eligibility for Free Zone Exemptions 

Many Free Zone businesses assume they are automatically exempt from Corporate Tax. In reality, they must meet strict criteria to qualify as a “Qualifying Free Zone Person.” Failing to apply correctly or misunderstanding the criteria is another of the recurring CT filing mistakes. Tip: Ensure your income is “qualifying,” maintain sufficient economic substance in the UAE, and submit accurate returns to preserve your exemption.  

6. Filing Without Expert Review 

In the name of cost-saving, some startups or small businesses attempt to file corporate tax returns themselves using spreadsheets or generic templates. This DIY approach can result in errors, omissions, or a lack of awareness about regulatory updates all of which are common CT filing mistakes. Tip: Having your return reviewed by a professional can help you catch issues early, save time, and protect you from unexpected fines.  

CT compliance is a year-round responsibility that depends on good systems, accurate records, and up-to-date knowledge. With Kitaab, you get: 

• End-to-end tax filing support 

• Expert review of financial data 

• Filing aligned with FTA deadlines 

• Audit-ready documentation 

• Guidance on exemptions and transfer pricing 

Avoid CT filing mistakes. Talk to a tax expert and file with confidence.  

Disclaimer: Content posted is for informational & knowledge sharing purposes only and is not intended to be a substitute for professional advice related to tax, finance, legal, compliance, or accounting. No warranty whatsoever is made in this regard, and it is not intended to provide and should not be relied on for tax/ finance/ legal/ compliance or accounting  advice. The content posted is subject to future amendments / changes / clarifications in the regulation by the authorities. For any clarifications, you may contact our finance, tax, compliance, legal team.