Corporate Tax Refund in UAE – Who Qualifies and How to Apply

Introduction

In some cases, a business may pay more Corporate Tax than it owes—creating an overpayment eligible for refund. The UAE’s Federal Tax Authority (FTA) provides a structured process for claiming refunds. This guide explains who qualifies, how to apply, and what documents are required.

1. When Does a Refund Arise?

Refunds occur when:

• Tax payments exceed the final liability for a period.
• Input tax or withholding credits are greater than output tax.
• An error or adjustment reduces tax payable after submission.
• A taxpayer withdraws registration and has a credit balance.

2. Eligibility for Refund

All registered taxpayers may apply if they have a verifiable credit balance in their FTA account after return submission and reconciliation.

However, the FTA may review supporting evidence before approval.

3. Documents Required

• Copy of the Corporate Tax return and payment receipt
• Bank account letter (IBAN verified)
• Reconciliation statement showing overpayment
• Audit trail or proof of error correction
• Authorization letter (if submitted by tax agent)

4. How to Apply for Refund

1. Login to the FTA portal.

2. Select “Corporate Tax Refund Request”.

3. Enter amount requested and reason for refund.

4. Attach supporting documents.

5. Submit and track status through your dashboard.

FTA reviews the application and may request clarifications or additional evidence before approving transfer to your registered bank account.

5. Processing Timeline

Refund processing typically takes 30-45 working days after submission of complete documents. Incomplete requests can extend the timeline.

6. Tips for Smooth Refunds

• Ensure bank details match FTA records.
• Keep audit records of tax computation and payments.
• Respond promptly to FTA queries.
• Use a registered Tax Agent to validate your claim.

7. Conclusion

Claiming a Corporate Tax refund is straightforward when your books are accurate and documents complete. Professional guidance ensures timely approval and avoids unnecessary delays.

Contact our experts to get tailored Corporate Tax support for your business.