For businesses considering or already established in the United Arab Emirates (UAE), understanding the nuances of Corporate Tax registration is important. While the UAE is celebrated for its tax-efficient environment, recent developments have introduced specific requirements for corporate tax compliance across certain Emirates. The recent introduction of corporate tax in the UAE has sparked questions for businesses across the country. Whether you’re a mainland company or operate within a free zone like Abu Dhabi Global Market (ADGM) and Dubai International Financial Centre (DIFC) with special tax privileges, understanding the registration requirements and adhering to them is crucial.

Who needs to Register with UAE Corporate Tax?

The first step is determining if your business is subject to corporate tax. As per Article 11 of the Corporate Tax Law, the following entities must register:

· Commercial and other legal firms registered in the UAE, as well as organized foreign legal entities that handle the majority of their operations in the UAE.

· Permanent establishment; company Income tax and corporate tax; residency status: non-resident juridical persons (foreign entities).

· Consequent to this requirement, several Non-Resident persons are deriving State Sourced Income.

· Residents or companies who are non-tax residents have established an economic connection with the UAE through the legal acquisition of Income from Immovable Property.

· Legal entities provided that the person carrying out Business or Business Activities in the UAE and the Turnover of the Business or Business Activities in question, according to the Gregorian calendar year, is more than AED 1,000,000.

Step-by-Step Guide to Register with UAE Corporate Tax

1. Eligibility Check: Confirm your business falls under the UAE corporate tax bracket.

2. TRN Application: Obtain a Tax Registration Number (TRN) through the Federal Tax Authority’s (FTA) online portal. You’ll need details like your business’s legal status, trade license number, and contact information.

3. Document Gathering: Collect necessary documents, including:

· Valid trade license photocopy.

· Company’s Memorandum of Association (MOA).

· Current passports of shareholders, directors, and authorized signatories.

· Photocopies of owners’ company IDs and authorized signatories’ IDs.

4. Registration Application: Submit the application form on the FTA website. The form will request details about your business activities, any exemptions you might claim, and other relevant information. Double-check all information before submission.

5. FTA Review: The FTA will review your application. This process can take time, so be patient. The FTA may request additional documents or clarifications if needed. Respond promptly to avoid delays.

6. The Initial VAT Registration: To obtain a Tax Registration Number (TRN) for corporate tax purposes, businesses must first undergo the VAT registration process. This initial step involves completing a detailed 8-step form on the FTA portal. After submitting the application, businesses can track its progress through the provided website. Once approved, they can access their TRN number through the same portal, ensuring compliance with UAE tax regulations.

7. File for CT (In your tax period): After successfully completing and receiving approval for your registration application, you will be issued a tax registration number or certificate confirming your business’s registration for corporate tax in the UAE. Once in possession of this certificate, you can proceed to fulfil your corporate tax obligations by making the necessary payments. The specific tax liabilities will vary based on factors such as your business activities and turnover.

Deadlines and penalties for delays

It is also important to note that if the CT registration application is not filed within the mentioned periods, the administration has the right to impose a penalty of up to AED 10,000.

Beyond Registration

· Record Keeping: The UAE government emphasizes proper business conduct and maintaining accurate financial records along with on-time registration.

· Tax Filing and Payment: Once registered, you’ll need to file tax returns and pay corporate taxes based on your business activities and turnover. Consulting a tax expert is recommended to ensure you meet all tax obligations.

Embrace Transparency and Accountability while Registering with UAE Corporate Tax

Complying with corporate tax registration demonstrates your commitment to transparency and accountability. The FTA’s online portal streamlines the process, but remember, timely and accurate submissions are crucial to avoid penalties and maintain a positive relationship with the tax authorities.

Get rid of Corporate Tax burden with MS

Understanding the specific rules of Corporate Tax registration in the UAE and the requirements for free zones and mainland can be complex. Early registration ensures a smooth process and helps businesses stay compliant. This not only protects your company but also contributes to the UAE’s economic development. For a hassle-free and compliant registration, consider seeking help MS. We can address your specific needs and ensure you meet all legal requirements without fail.