Corporate Tax Registration
Starting from June 1, 2023, the UAE will implement corporate tax, and understanding the registration process and requirements is crucial. Some companies have already been invited to register through the EmaraTax platform. The corporate tax rate will be 9% for the financial year beginning on or after June 1, 2023.
Businesses with income over AED 375,000 will fall under the taxable bracket, while profits below that threshold will be exempt from corporate tax.
How And When To Register For Corporate Tax in UAE?
Businesses in the UAE must register with the Federal Tax Authority and get a corporate tax registration number or ID. All businesses such as free zones, individuals, and companies would be required to register even if they have taxable income below the fixed threshold of AED 375,000 (applies to all corporations or businesses whether they are subject to 0% corporate tax or 9% corporate tax). Moreover, the businesses are not required to take any action on corporate tax registration unless they get an “invitation to register” during the January-May period.
The taxpayer will have to electronically register for UAE corporate tax through the website of the Federal Tax Authority.
UAE Corporate Tax Registration - User Manual
If the entity has already registered for the VAT, then the process of corporate tax registration is much easier. You will find that most of the data is already filled in the form and the process of registration becomes easier and faster. Corporate tax registration is open now in the FTA portal.
The Federal Tax Authority (FTA) has issued the corporate tax registration user manual. To fill out the corporate tax registration application, the following details, and information is required.
There are no penalties relating to registration if the businesses ensure to register at least before the due date for tax return submission.
UAE Corporate Tax Deregistration And Tax Return Filing
If your business is a corporation and also registered for corporate tax, then you can deregister it before it ceases to be subject to corporate tax. If you have filed corporate tax returns, then the Federal Tax Authority will deregister your business. If you have settled all the corporate tax liabilities and also any due penalties, then FTA will deregister your business.
The businesses are required to file a single consolidated tax return, rather than filing for multiple returns. Within nine months the consolidated return must be filed at the end of each relevant tax period.
Deadlines Of Corporate Tax
The corporate tax regime is about the self-assessment principle, all businesses have to make sure that the documents they are submitting to the FTA are accurate and also comply with the law.
The UAE corporate tax regime allows taxpayers up to 21 months from the start of their financial year to prepare for making their tax payments and filing. For example, those corporations with a financial year starting on June 1, 2023, and ending on May 31, 2024, have a deadline of February 28, 2025, to file their corporate tax returns and make their payments.
For those businesses whose first tax period begins on January 1, 2024, and ends on December 31, 2024, the payment and return must be filed between January 1 and September 30, 2025.
UAE has already announced corporate tax to be implemented on or after 1 June 2023. The business will become subject to UAE corporate tax according to its net profit rate. All those businesses which have AED 375,000 net profit or more are subject to paying 9% corporate tax.
The UAE has started early corporate tax registration for some categories of companies operating in the country. All the companies will get invitations from the Federal Tax Authority to register for corporate tax. You can do registration by doing the user manual as it is open now in the FTA portal.
The following details and information is required for your registration application in UAE:
- Identification details
- Entity details
- Authorized signatory
- Contact details
- Review and declaration
As businesses in UAE must register with the FTA and get a corporate tax registration ID or number. The UAE corporate tax registration applies to all businesses or corporations whether they are subject to 9% corporate tax or 0% corporate tax. The taxpayer will have to register electronically through the website of the Federal Tax Authority.
The UAE corporate tax regime allows taxpayers up to 21 months from the start of their financial year. They can prepare for making their tax filing and tax payments. Those companies with a financial year starting on June 1, 2023, have a deadline of February 28, 2025, to file their corporate tax returns and payments.
The business owners may decide to form a company at any time. If the company is registered in UAE, then it has to register for the corporate tax no matter whether they are subject to a 0% tax rate or a 9% tax rate.
Yes, you can file the corporate tax returns of your company. You can also appoint an accountant to prepare and file for your corporate tax. You need to register for the corporate tax electronically and then you can get the notification to file for your corporate tax.