UAE Corporate Tax Registration
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UAE Corporate Tax Registration
The UAE’s implementation of corporate tax marks a significant shift in its taxation landscape. Businesses operating in the UAE must comply with the Federal Tax Authority (FTA) guidelines to ensure smooth operations and avoid penalties. Here’s a step-by-step guide to understanding and navigating the UAE corporate tax registration rules:
Understand the Applicability of UAE Corporate Tax
Corporate tax applies to:
- All UAE-based entities: Includes businesses incorporated in mainland UAE and Free Zone companies engaged in activities not qualifying for specific tax incentives.
- Foreign companies: Applicable if they generate income sourced from the UAE or maintain a permanent establishment in the UAE.
- Natural persons: Individuals conducting business activities requiring a commercial license may also be subject to corporate tax.
Key Provisions from FTA Guidelines:
Branches of foreign entities are treated as separate taxable entities unless they meet the conditions for consolidation.
Tax residency is determined by place of management or incorporation in the UAE.
Gather Required Information for Registration
Before registering for UAE corporate tax, businesses should ensure they have the following details:
- Trade license information.
- Business name and address.
- UAE-issued Emirates ID (for individual business owners).
- Financial records and details of taxable income.
- Details of parent companies, if applicable.
Companies in industries such as media production, broadcasting, film, music, streaming, and entertainment can all benefit from the expertise of approved auditors in Dubai Studio City.
Register for UAE Corporate Tax
To register for UAE corporate tax:
Access the FTA Portal
Visit the Federal Tax Authority’s official online platform. Ensure you have an active FTA account before proceeding with the corporate tax registration.
Complete the Registration Form
Specify whether the business is part of a multinational group or qualifies for Free Zone benefits. Declare whether the entity is applying for an exemption (e.g., government entity, public benefit organization).
Submit Supporting Documents
Attach scanned copies of the following, Valid trade license. Passport and Emirates ID of the business owner or authorized representative.
Await Approval
The FTA will review your application and may request additional information or clarification. Upon successful verification, you will receive a Tax Registration Number (TRN) specific to corporate tax.
FTA Guidelines on Registration Deadlines
Existing Businesses: Businesses incorporated prior to 1 March 2024 must register based on the issuance month of their trade license:
- January: Deadline is 31 May 2024
- February: Deadline is 31 May 2024
- March: Deadline is 30 June 2024
- April: Deadline is 30 June 2024
- May: Deadline is 31 July 2024
- June: Deadline is 31 August 2024
- July: Deadline is 30 September 2024
- August: Deadline is 31 October 2024
- September: Deadline is 31 October 2024
- October: Deadline is 30 November 2024
- November: Deadline is 30 November 2024
- December: Deadline is 31 December 2024
- Businesses Without Trade Licenses on 1 March 2024: Must register within three months of the effective date, i.e., by 31 May 2024.
- New Businesses After 1 March 2024: Must register within three months of incorporation or establishment.
- Natural Persons: Natural persons conducting business or business activity must register if their annual turnover exceeds AED 1 million, starting 1 January 2024.
- Offshore Companies: Offshore companies incorporated under foreign jurisdictions but effectively managed and controlled in the UAE must register within three months of the end of their financial year if they meet the taxable income threshold.
- Non-Compliance Penalty: Failure to register within the specified timeline will result in an administrative penalty of AED 10,000.
Maintain Proper Financial Records
Businesses must retain accurate and detailed financial records for at least seven years, including:
- Income statements
- Balance sheets.
- Supporting documents for deductions, exemptions, and credits claimed
Maintain Proper Financial Records
Regularly check the FTA portal and stay informed about:
- Changes in corporate tax regulations.
- Additional requirements or documentation.
- Deadlines and compliance updates.
Your Trusted Partner for UAE Corporate Tax Registration
You Are At The Right Place
Navigating UAE’s corporate tax regulations can be complex, but Elevate Accounting & Auditing is here to simplify the process. Our team of experts ensures seamless registration, compliance, and advisory services tailored to your business needs
From document preparation to ongoing tax support, we’re committed to safeguarding your financial interests.
You Are At The Right Place
- Expertise in UAE’s tax laws and regulations.
- Comprehensive support for businesses across various industries.
- Personalized solutions for corporate tax compliance.
Contact us today
Contact us today to ensure your business is fully compliant with UAE corporate tax rules and focus on what you do best—growing your business!