When it comes to managing a business in the United Arab Emirates (UAE), understanding the ins and outs of Corporate Tax registration is essential. While the UAE has traditionally been known for its tax-friendly policies, recent changes have implemented specific regulations for corporate tax compliance in the Emirates. The recent arrival of corporate tax in the UAE has generated a lot of confusion for businesses throughout the country. Regardless of whether your company is located on the mainland or operates within a free zone with special tax benefits, such as Abu Dhabi Global Market (ADGM) and Dubai International Financial Centre (DIFC), it’s vital to understand and comply with the registration requirements.

Among the various requirements, getting a Tax Registration Number (TRN) is crucial. For both the registration of Value Added Tax (VAT) and Corporate Tax, having a TRN is mandatory. Let’s explore more about TRN.

What is a Tax Registration Number in the UAE?

A Tax Registration Number in the UAE (TRN) is a unique identification number assigned by the Federal Tax Authority (FTA) to businesses and individuals in the UAE. It’s like a social security number for your business, used to track your tax obligations and ensure compliance with UAE laws.

Who Needs a Tax Registration Number in the UAE?

Every business operating in the UAE needs to comply with VAT regulations. There are two registration thresholds:

• Voluntary Registration (AED 187,500): Businesses with a turnover exceeding AED 187,500 but below AED 375,000 can choose to register for VAT.
• Mandatory Registration (AED 375,000): Businesses with a turnover exceeding AED 375,000 in the last 12 months or expected to exceed it in the next 30 days must register for VAT.

Benefits of Having a Tax Registration Number in the UAE

• Charge VAT on your services: Only businesses with a TRN can legally charge VAT to their customers.

• Comply with tax laws: A TRN helps ensure you’re following UAE tax regulations and avoiding penalties.
• Accurate financial tracking: The TRN helps the government track your transactions for accurate record-keeping.

How to Apply for a Tax Registration Number in the UAE

1. Register on the EmaraTax portal: You’ll need a UAE ID pass to create an account.
2. Log in and choose the registration option: Select “VAT, Excise, or Corporate Tax Registration” based on your needs.
3. Verify eligibility and gather documents: Ensure you meet the eligibility criteria and have all the necessary documents like trade license, bank details, etc.
4. Complete the application form: Fill out the online application form carefully. Consider using a tax agent for assistance.
5. Submit the application: Once you’ve completed the form and uploaded the required documents, submit your application.

Processing Time and Approval

The FTA typically processes applications within 20 business days. They may request additional information if needed, which can extend the processing time.

Where to Find Your Tax Registration Number in the UAE

After approval, you’ll receive a VAT (Tax) Certificate containing your TRN, a Generated International Bank Account Number (GIBAN), and a downloadable registration certificate from your EmaraTax account.

MS for Corporate Tax Compliance in the UAE

UAE Corporate Tax registration can be a daunting task for both Free Zones and mainland businesses. Don’t wait! Early registration streamlines the process and keeps you compliant. This protects your company and contributes to the UAE’s economic growth. For a stress-free and compliant registration, consider partnering with MS. We’ll tailor our services to your specific needs, ensuring you meet all legal requirements with ease.