Corporate tax in Verasol

Verasol works out corporate tax from the books you have already posted. For each financial year it takes the profit in your ledger, makes the tax adjustments, applies any relief and the losses of earlier years, and splits the taxable income between the 0% and 9% bands. Until a person accrues or files the return, the tax is a calculation only: nothing is in your books. Filing the return books the tax and closes the year for changes to its profit.

Before you start#

Verasol takes two things from your company settings:

• Each tax period is a financial year, set by Fiscal Year Start under Settings › Financial Configuration. A financial year is named after the calendar year it ends in: an April to March year that ends in March 2027 is FY 2027.
• Under Settings › Tax & License Details, the Corporate Tax Information part holds Registered for corporate tax, the Corporate tax TRN and First corporate tax period starts. Verasol prepares no return for a year that ends before that date. When the date falls inside a financial year, that year's tax period starts on it.

The return of a year is due at the end of the ninth month after the year ends. For FY 2026 (1 January to 31 December 2026) that is 30 September 2027.

Open the corporate tax dashboard#

Open Corporate Tax › CT Dashboard in the main menu. The card at the top shows CT Registered and the TRN, and the financial year running today with its dates. When the settings do not say the company is registered, the card shows Registration not recorded instead, with a reminder that every UAE company must register for corporate tax and a link to record the registration in the settings. A company that is exempt from corporate tax does not see this reminder.

• 1 All Returns opens the list of returns of every year.
• 2 The box of the current year's return shows its status and its Net Tax Payable: the tax of the year as the return was last calculated, less any payments on account. When the year has no return yet, the box says No return created yet and offers Create Return.
• 3 Available Losses: tax losses of earlier years that later returns can still use.
• 4 Small Business Relief: Elected, Eligible or Not Eligible for the financial year running today, with the year's revenue and the threshold. It applies the same checks as the Small Business Relief screen.
• 5 Free Zone Status (QFZP): for a free zone company, Qualifying or Not Qualifying for the financial year running today, from that year's free zone assessment, with the same checks as the return, including the four years before. A qualifying year shows its 0% Income and its 9% Income; the 9% part includes the revenue left out of the de minimis test. When the year has no assessment yet, the box offers Complete Assessment. A company that is not recorded as a free zone company sees Not recorded as a free zone company, with a link to the assessment.
• 6 Quick Actions open the screens for Small Business Relief, tax losses, the QFZP assessment and payments on account.

Previous Returns lists up to five earlier years with their status and Tax Liability. Click View to open one. When you have planned payments on account that are not paid yet, Voluntary payments on account lists them, each with Record Payment.

Messages at the top of the dashboard need your attention:

• An amber message names a filed year whose books have changed since the return was filed, or a filed year with entries posted after the filing. Open the return and amend it if the tax changes.
• A red message means the balance of Corporate Tax Payable or Corporate Tax Paid in Advance in your ledger differs from what your returns and payments give. Book corporate tax through the return, never with a manual journal.

How Verasol works out the tax#

A return follows the same steps every time, in the order the return shows them:

1. Accounting Income (Net Profit): the income less the expenses posted in the tax period, in AED. Drafts are not included.

2. Add-back Adjustments and Deduction Adjustments. Verasol makes these from your books each time it calculates:

   • the corporate tax expense booked in the year is added back;
   • an expense account whose Corporate Tax Treatment is Non-Deductible is added back in full;
   • an account set to Partially Deductible is added back for the part above its Deductible Percentage (50% when the percentage is left empty), on the amount as booked, including input VAT that could not be recovered;
   • the adjustment of related-party transactions that your transfer pricing register marks as not at arm's length;
   • net interest expense above the limit (the higher of AED 12 million and 30% of EBITDA for tax).

   You add what the books cannot know yourself, on the return.

3. Exempt Income: the income of accounts set to Exempt Income.

4. Adjusted Taxable Income: the result. Below zero, it is a tax loss of the year.

5. Reliefs: with Small Business Relief elected, the year has no tax. A Qualifying Free Zone Person pays 0% on its qualifying income.

6. Less: Loss Utilized: losses of earlier years, up to 75% of the year's adjusted taxable income.

7. Taxable Income, split At 0% (first AED 375,000) and At 9%, gives the Gross Tax Liability.

8. Less: payments on account gives the Net Tax Payable.

For FY 2025, Crescent IT Solutions' return reads:

From the books to a filed return#

1. Create the year's return: New Return in Corporate Tax › CT Returns, or Create Return on the dashboard. It starts as Draft.
2. Click Calculate. Calculate again with Recalculate whenever the books of the year change. Calculating books nothing.
3. Add the adjustments the books cannot know, and calculate again.
4. Click Mark Reviewed when the figures are checked.
5. After the year has ended, you can click Accrue tax to book the tax on the last day of the year before you close it.
6. Submit the return on EmaraTax, the FTA's portal. Verasol does not send returns to the FTA.
7. Record the filing with File with FTA: Verasol books the tax and the year is closed for changes to its profit.
8. Record the payment with Record Payment.

Corporate tax returns explains each step and what Verasol books.

Viewing these screens needs the permission Tax: VAT and corporate tax (view). Preparing and filing returns and recording payments needs Tax: prepare and file returns, record tax payments. See Team and permissions.

Related#

• Corporate tax returns
• Small Business Relief
• Tax losses carried forward
• Qualifying Free Zone Person (QFZP)
• Chart of accounts
• Company settings