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A Guide to UAE Corporate Tax Registration

UAE corporate tax is a tax imposed on the net income or generated revenue of a corporation. The purpose of corporate tax is to generate revenue for government operations, as well as to regulate the tax activities of corporations. The UAE corporate tax was effected through Federal Decree-Law No. 47 of 2022, which sets the corporation tax’s scope, regulations, and standards.

Who is Required to Register for UAE Corporate Tax?

According to Federal Decree-Law No.47 of 2022, the following entities are required to register for corporate tax;

  • Except in situations specified by the corporate tax regulation, all taxable persons ought to register for corporate tax, a tax registration number has to be issued.
  • To qualify for tax exemption, the relevant persons under clause 1 of article 4 of this decree-law, or the unincorporated partnership, as applicable, are required to register for corporate tax and obtain a tax registration number to qualify for corporate tax exemption. 

Corporate Tax Registration Process in UAE

The process of corporate tax registration in UAE compels corporations to initially register their trade license with the Federal Tax Authority (FTA) in order to obtain a Tax Registration Number (TRN). Further, the registration process obligates completing an online registration form and providing required documentation such as the trade license and articles of incorporation. Once registered, businesses will receive a Tax Registration Number, which must be used on all tax-related documents and filings.

Read More : Guide to Corporate Tax Preparation in UAE

Essential Components of UAE Corporate Tax Registration

Importantly, when registering for UAE corporate tax it is vital to note that the jurisdiction follows a self-assessment system. This affirms that businesses are responsible for determining their own tax liability and submitting their tax returns accordingly. It is crucial that the business keep accurate records of all financial transactions and maintain proper documentation to substantiate the returns submitted. Thus, it is imperative for businesses to avail of the services of accredited tax agents in the UAE to clearly determine tax liability and to timely submit correct tax returns. 

Conditions for Not Registering and Filing Returns for UAE Corporate Tax?

All corporations/businesses that fall under the cognizance of UAE corporate tax ought to register and submit a corporate tax return timely. Failure to comply accrues the Federal Tax Authority fines and penalties upon business. 

Avail Expert Tax Services From Top UAE Tax Agents

Essentially, taxable corporations ought to outsource the expert services of accredited tax agents in the UAE to stay compliant with the Federal Tax Authority’s regulations and standards and to avert tax penalties for noncompliance. Thus, contact Farahat & Co. today and we shall be glad to assist you! 

Read More : Corporate Tax Registration, Corporate Tax Filing & Pay in UAE

Ervee is a CPA with international experience in Tax and Accounting. He has over 12 years of experience in accounting and bookkeeping and over a year in VAT implementation, registration, and accounting in UAE. He regularly drives out inefficiencies in company operations and loves the challenge of helping clients find additional ways for an easier and improved compliance and verification of transactions.