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It’s the government’s share of a company’s earnings.
- Activation of CIT Accounting
Administration → Settings: Taxes → Enable CIT Accounting.
2. New GL Accounts
Ensure that the correct GL accounts are available in the system.
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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.
3. Set up the CIT return template
CIT Return templates are added to the master data of Taxes.
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There are two ways to prepare the template
Manual setup: Create the CIT return templates manually, build the structure, and link each line to data from your accounts.
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Wizard: Use guided questions (recommended for the UAE) to quickly prepare the template quickly. 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.
4. CIT Return
Once the CIT Return Template is set up, users can simply select the period at year-end, and the system automatically fills the return with accounting data.
, the system generates a return that looks almost the same as the UAE tax portal form. The amounts are taken directly from the company’s accounting data, so the return is accurate and consistent. At the end of the year, the user only needs to create the return, choose the period, and the system will calculate all amounts, including the tax liability. The process works in the same way as the VAT return.
