The Corporate Income Tax (CIT) functionality enables accurate accounting, calculation, and reporting of corporate income tax in compliance with applicable regulations (including UAE CIT). It provides dedicated GL accounts, tax return templates, calculation tools, reporting capabilities, and integration with other documents such as Other Expenses and Tax Transactions. is a tax that companies pay on the profit they make.
Companies earn money from their business.
They subtract business costs (like salaries, rent, and supplies).
The remaining money (profit) is taxed by the government.
It’s the government’s share of a company’s earnings.
Activation of CIT Accounting
Administration → Settings: Taxes → Enable CIT Accounting.
New GL Accounts
Ensure that the correct GL accounts are available in the system.
Estimated CIT Liability - This GL can be used to record estimated income tax in the current period, which can later be offset against the actual tax payable. Works with Other Expenses and Tax Transactions documents.
Deferred Tax Asset - This is used when a company records tax losses that can be carried forward to offset future tax liabilities. It also works with Other Expenses documents to allow accrual of the loss now and deduction against taxes in later periods.
Set up the CIT return template
CIT Return templates are added to the master data of Taxes.
Taxes → Master Data → CIT Return Templates
There are two ways to prepare the template
Manual setup: Create the return manually, build the structure, and link each line to data from your accounts.
Wizard: Use guided questions (recommended for UAE) to quickly prepare the template. The CIT Wizard guides companies through essential questions to configure their UAE Corporate Income Tax return template. It adapts to each company’s chart of accounts and expense allocation rules, producing a return that closely matches the tax portal. Once set up, users can simply select the period at year-end, and the system automatically fills the return with accounting data.
