Corporate Tax Registration in UAE

In the dynamic landscape of the UAE’s financial sector, Al Marzaan stands as your trusted provider of corporate tax services. It’s essential for businesses to understand the corporate tax law and its registration procedures. Here’s your comprehensive guide:

In 2022, the UAE’s Ministry of Finance introduced Corporate Tax, slated for full implementation in June 2023, impacting the financial years of businesses across the nation. In response, audit firms in Dubai and tax consultants in the UAE have begun offering Corporate Tax Advisory and Implementation Services to help businesses comply with this new regulatory framework.

Corporate Tax Registration in the UAE

According to the Federal Tax Authority’s Federal Decree Law 47, every taxable entity, including Free Zone Persons, must register for Corporate Tax and obtain a Registration Number. Even Exempted Persons are urged to register. Taxable Persons are required to file Corporate Tax returns within nine months from the end of a specific period, with payment due at the time of filing.

After successful registration, corporate tax is levied at a standard rate of 9% on taxable income exceeding AED375,000, while income up to AED375,000 remains untaxed.

How to Register for UAE Corporate Tax

The Federal Tax Authority has introduced pre-registration of corporate tax through the Emara Tax platform, offering a user-friendly portal for taxpayers to manage all tax-related activities, including registration, returns, refunds, deregistration, and payments. This platform also facilitates easy VAT payments.

By creating an account or migrating your existing FTA account to Emara Tax, you can submit the necessary documents for corporate tax registration. A user manual for corporate tax registration in Emara Tax is available for reference.

Benefits of Corporate Tax Registration

Corporate Tax registration in the UAE serves several advantages:

  1. Compliance: Staying in accordance with tax laws and staying updated on changes.
  2. Combatting Tax Evasion: Identifying and addressing malicious tax practices.
  3. Global Tax Standards: Adhering to world-class tax standards.

Corporate tax registration is also crucial in optimizing after-tax revenue for companies, benefitting shareholders and indirectly impacting individuals with shareholdings, private pensions, or investment funds.

Exemptions from UAE Corporate Tax

While Exempted Persons are encouraged to register for Corporate Tax, they are subject to a 0% corporate tax rate. Certain categories, such as employees’ salaries, shares, real estate investments, intra-group transactions, and foreign investors’ income, remain exempt from Corporate Tax.

Mandatory Registration for Taxable Persons

Under UAE Corporate Tax policy, both Mandatory Registration and Registration at the choice of the FTA exist. Businesses that fall under the Corporate Tax policy must apply for registration and obtain a Tax Registration Number within a specified period. Al Marzaan Consultancy’s tax consultants are well-equipped to assist businesses through this process.

Timeline for Corporate Tax Registration

The registration process for Corporate Tax commences in early 2023. For instance, a business with a tax period starting in June 2023 should register for Corporate Tax by January 2023, with the return filing deadline in February 2025.

Importance of Corporate Tax Assessment

Assessing the risks and legal factors of your business concerning corporate tax is essential for compliance. Failure to conduct a proper assessment may result in corporate tax fines and penalties. The assessment includes impact assessment, document assessment, and tax compliance assessment, best done with professional corporate tax consultants.

Corporate Tax Registration Services by Al Marzaan Consultancy

At Al Marzaan Consultancy, our highly qualified and experienced tax consultants specialize in Corporate Tax registration. We understand the significant changes brought about by Corporate Tax implementation and can guide you through the process smoothly. Our expertise ensures early compliance, cost savings, and reduced team stress.

We provide regular updates on Corporate Tax Registration and filing CT returns, helping you stay compliant with regulations and avoid fines and penalties.

For a seamless transition into the world of Corporate Tax, trust Al Marzaan Consultancy – your partner for success.