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Corporate Tax Registration in UAE

According to the Federal Decree Law 47 of FTA (Federal Tax Authority), every taxable person is required to register for Corporate Tax and get a Registration Number. The corporate tax registration in UAE is beneficial for those entities that are subject to corporate tax. They can stay with the tax law and follow up on any amendments, identify malicious tax practices, and keep up with exceptional tax standards. On the whole, it is a significant process, however, there are conditions for corporate tax registration in UAE.

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Corporate Tax Registration in UAE

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  1. CORPORATE TAX REGISTRATION IN UAE

  2. The introduction of corporate tax in the UAE is scheduled for June 1, 2023. According to the law, individuals and businesses subject to taxation will face a 9% corporate tax from their initial fiscal year starting on or after June 1, 2023. They must acquire a corporate tax registration number. Since the initial announcement, businesses and tax experts have extensively development. This move positions the UAE as the fourth GCC nation to implement a federal business tax. Incorporating a corporate tax registration number aligns with the UAE’s commitment to enhancing its status as a premier global hub for commerce and investment, furthering its transformation goals. Additionally, corporate tax deters unfavourable tax practices and ensures compliance with international standards for tax transparency. CORPORATE TAX REGISTRATION IN UAE deliberated on this strategic growth and

  3. As per FTA’s Federal Decree Law 47, every taxable entity, including Free Zone Persons, must register for Corporate Tax and obtain a Registration Number. The Federal Tax Authority explicitly requires exempt persons to register for Corporate Tax. Taxable persons must submit corporate tax returns within nine months of the end of the specified tax period. This deadline covers settling all Corporate Taxes owed for the respective Tax Period covered by the filed return. In cases of exclusion permitted by the Minister, a Taxable Person must adhere to a specific timeline and format to register for Corporate Tax with the Federal Tax Authority. The Authority mandates that Taxable Persons or Independent Partnerships register for Corporate Tax and acquire the Tax Registration Number. Corporate Tax registration with the Tax Authority should be promptly completed when an individual becomes a Taxable Person.

  4. The Federal Tax Authority has introduced a pre-registration process for corporate tax on the EmaraTax platform. EmaraTax is an online portal consolidating tax-related tasks, including registrations, returns, refunds, deregistrations, and payments. The platform’s user-friendly interface facilitates easy VAT payments and corporate tax management. To get started, individuals can create an account on EmaraTax or migrate their existing FTA Account to the platform. Successful registration for corporate tax requires the submission of all necessary documents as outlined in the UAE corporate tax regulations. Utilising the EmaraTax Login guide simplifies the process of creating an account or transitioning an FTA Account, ensuring a smooth registration experience for corporate tax in the UAE.

  5. Businesses in the UAE are required to register for corporate tax, which is imposed on taxable income at the following rates: A corporate tax rate of 0% is applicable to taxable income up to AED 375,000, and this rate applies to all qualifying income generated by the person in the free zone. A 9% corporate tax rate is imposed on taxable income surpassing AED 375,000, and it applies to all non-qualifying income generated by the individual in the free zone. Multinational corporations falling under OECD Base Erosion and Profit-Sharing laws within Pillar 2 of the BEPS 2.0 framework, with combined worldwide revenues exceeding AED 3.15 billion, the Ministry of Finance announced that the UAE will not implement Pillar Two rules before 2025.

  6. Copy of the valid Trade License. Passport copies of the owner associated with the license Emirates ID copies of the owner holding the license Memorandum (MOA) or Article of Association (AOA). Contact details of the person concerned Comprehensive company contact details, encompassing complete address and P.O. Box. Information specifying Corporate Tax Period. ESSENTIAL DOCUMENTATION FOR UAE CORPORATE TAX REGISTRATION of Association the the

  7. EXCLUSIONS FROM CORPORATE TAX: WHAT FALLS OUTSIDE THE CORPORATE TAX SCOPE? Individual Income Exemption: Corporate tax does not apply to individual income unassociated with a trade or business in the UAE. Foreign Investors: Foreign investors not engaged in business activities within the UAE are exempt from corporate tax obligations. Free Zone Businesses: Businesses operating within free zones, provided they adhere to all regulatory criteria, will maintain corporate tax advantages. Capital Gains and Dividends: Corporate tax does not apply to capital gains or dividends earned by UAE corporations or individuals from qualifying shareholdings. Intragroup Transactions: Intragroup transactions meeting the criteria for tax grouping are not subject to corporate tax.

  8. Before registering for corporate tax, it’s vital to assess the risks thoroughly and legal factors related to the business, pre- and post-implementation.This approach ensures compliance with the country’s tax regime. Failure to properly assess may lead to corporate tax fines and penalties. The assessment before registration encompasses components: impact assessment, document assessment, and assessment. Consider engaging professional corporate tax consultants or specialized firms for high-quality corporate tax assessment services. The Importance of Corporate Tax Assessment Before Registration corporate three tax key tax compliance

  9. Empower Your Business with Shuraa Tax Shuraa Tax offers top-notch corporate tax accounting solutions, and audit services to help your business navigate everyday challenges, such as navigating corporate tax laws and transfer pricing regulations, compliance issues, managing resource constraints, enhancing accounting system compliance. information on UAE Corporate Tax Registration, contact Shuraa Tax Consultants & Accountants. services, addressing and For detailed

  10. THANK YOU +971 508912062, +971508912403 info@shuraatax.com www.shuraatax.com Office – 13, 44th Floor, Aspin Commercial Tower, 106, Sheikh Zayed Road, Dubai, UAE.

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