Corporate Tax Registration in UAE: A Comprehensive Guide

The government of the United Arab Emirates has announced the introduction of corporate tax beginning June 1st, 2023. This declaration has caused a buzz among businesses and tax advisors. It's been a bit confusing how to register for corporate tax since the UAE announced that corporate tax would be implemented. Now, FTA has opened a window for corporate tax registration on the EmaraTax portal! Yes, it’s getting closer! This blog will comprehensively guide the registration process and its requirements. You'll learn the different types of tax registration, the necessary documents, and the steps to complete the process.

Documents Required for Corporate Tax Registration UAE

Let’s explore the necessary documents required for corporate tax registration in the UAE. It will vary based on whether the registrant is a natural or legal person. 

1. Natural persons

• Emirates ID/Passport: Proof of identification of the taxable person
• Valid trade license (Only if applicable): The license must be current and valid at the time of registration

2. Legal persons (Corporations/Entities)

• Emirates ID / Passport of Authorized Signatory: Proof of identification of the authorized legal representative.
• Proof of Authorization: Includes documents such as a Power of Attorney, if applicable.
• Valid Trade License: An up-to-date valid trade license is a must.

Please note that each of the digital documents(PDF or Word files) must be less than 5MB for acceptance by FTA. 

How to Register for UAE Corporate Tax? A Step-by-Step Guide

Following are the step-by-step guidelines for corporate tax registration in the UAE.  

1. Open EmaraTax and log in: Use UAE Pass or your login information to access the EmaraTax portal. Create an account if you're a new user.
2. Add Taxable Persons: To continue, add a new Taxable Person if there aren't any already associated with your profile.
3. Choose Corporate Tax Registration: To start your application, choose 'Register' under the Corporate Tax area.
4. Examine the Registration Guidelines: Go over the given registration instructions, tick the agreement box, and continue.
5. Give Information About the Entity: From the dropdown menu, select the proper entity type (legal person or natural person). Enter information such as your registration number, legal structure, and trade license number.
6. Enter your Identifying Information: Add the legal name (in Arabic and English), trade name, and license number.
7. Include Business Activities: Click 'Add Business Activities' to list the activities carried out in accordance with the trade license.
8. Add Owners (if applicable):  Give ownership information for companies whose owners own at least 25% of the business.
9. Enter Branch Information (if applicable):  Click "Yes" to include branch information if your company has several branches.
10. Add an Authorized Signatory:  Include the authorized signatory's Emirates ID or passport information along with the necessary authorization documentation.
11. Review and Declaration: Make sure you have entered all the information correctly. By checking the declaration box, you may verify compliance.
12. Submit your Application: Complete the registration and submit it.

Compliance Requirements After Corporate Tax Registration

The review process will take up to 20 business days and might get extended if there is any additional information required. It is necessary to adhere to ongoing compliance requirements after a successful registration process. 

• Tax Return Filing: Companies have nine months from the end of their tax period to file their corporate tax returns.
• Keeping Accurate Financial Records: For audit and tax filing purposes, businesses must maintain thorough and accurate records.
• Deregistration: A business must file a final tax return and submit a deregistration application if it decides to stop its operation.

Important Things to Note for UAE Corporate Tax Registration

Please be aware of the following things to ensure a hassle-free corporate registration process and avoid complexities after registration.

• Registration Delays: If a taxable person fails to submit a Corporate Tax Registration application within the deadlines specified by the FTA’s applicable decisions (including Decision No. 3 of 2024), an administrative penalty of AED 10,000 will be imposed under Cabinet Decision No. 75 of 2023.
• Inaccurate or Incomplete Information: To avoid delays or rejections, make sure all information submitted is correct.
• Ignoring Proper Record-Keeping: Missing of proper records or documents may result in penalties.
  Corporate Tax Deregistration Process

It’s necessary for all the businesses that shut or ceases their operation to deregister for corporate tax. This can be easily done through the FTA website. Ensure that the below things are completed as part of the deregistration process.

• File your final Corporate Tax return and ensure that all your liabilities are settled to avoid penalties
• Login to the EmaraTax portal and submit a deregistration application. 

Conclusion

The new corporate tax in the UAE will contribute to levelling the playing field for businesses and strengthen protection for investors. Additionally, the law is expected to promote business ventures and strengthen the economy. The Corporate Tax is drafted to protect investors, encourage entrepreneurship, and boost the economy.

Getting registered for corporate tax can be a daunting process because businesses have so much to do. So, it is advisable to seek help from any Corporate Tax Registration Consultant in UAE. Consultants can help you with the corporate tax UAE registration process and also provide you with comprehensive and quick corporate tax registration services tailored to meet the business needs.

Reyson Badger, a leading corporate tax registration consultant in UAE, can help. Our experienced and knowledgeable team can guide you through the entire registration process, from preparing the necessary paperwork to filing the appropriate forms with the relevant authorities. We can also provide you with all the necessary advice and assistance to ensure your registration is successful and in compliance with the local tax laws.