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A Guide to Corporate Tax Deregistration Under The UAE Corporate Tax Regime

It is imperative for taxable persons to seek the services of top tax consultants in the UAE to seamlessly deregister for corporate tax as per the regulations and standards set by the UAE corporate tax regime. Noncompliance with the corporate tax statute accrues hefty fines upon taxable persons. 

The Process of Corporate Tax Deregistration in UAE

Primarily, it is important for taxable persons to calculate the potential Corporate Tax liabilities through the services of top tax consultants in UAE before filing for deregistration. The next step would be to inform Dubai’s Federal Tax Authority (FTA) and other relevant authorities about the intent to deregister from Corporate Tax . This can be done by filling out the Corporate Tax Deregistration Form, which can be accessed on the FTA’s website. Along with the form, you will also need to submit supporting documents such as your Memorandum of Association (MOA) and Articles of Association (AOA).

Once all required documents are submitted and approved, Corporate Tax the deregistration process takes up to two months to complete. During this time, companies are still responsible for filing Corporate Tax returns until deregistration is completed. After the deregistration, companies must ensure that they no longer pay Corporate Taxes in accordance with UAE law. 

Who Can File for Corporate Tax Deregistration in UAE?

The Corporate Tax in UAE applies to both resident and non-resident companies. Resident companies are those that are registered with the Dubai Corporate Tax Department, while non-resident companies are those that do not have such registration. Subsequently, if a company wants to deregister from Corporate Tax in UAE, it must file an application for tax deregistration at least two months before the end of its financial year. 

Read More: Benefits of UAE Corporate Tax Outsourcing

Requirements to file for UAE Corporate Tax Deregistration 

The application must be submitted by an accredited tax consultant in UAE and include documents such as: 

  • A copy of the corporate income tax calculator showing the taxable income for each financial year; 
  • Negative audited accounts for each financial year; 
  • Proof of payments made towards Corporate Tax in UAE for the same financial year; and 
  • A copy of the company's Dubai Corporate Tax registration certificate.

Once the application is accepted, the Federal Tax Authority will issue an official order to deregister from Corporate Tax in UAE. It often takes about two weeks for the tax deregistration process to be completed. Once the Federal Tax Authority approves the application for deregistration, it will become effective from the date of receipt. 

The company's Corporate Tax in UAE registration certificate will be canceled and all relevant documents including audited accounts and Corporate Tax returns must be filed within two months of the effective date of deregistration. 

It is important to note that after a company has been deregistered from Corporate Tax in UAE, it may still have to pay taxes on income earned from activities within Dubai such as import/export licensing fees, business permits, and other local taxes. 

Deregistration of Taxable Persons at the Order of the Federal Tax Authority:

Corporate Tax in UAE is regulated by the Federal Tax Authority (FTA) and they have the authority to deregister taxable persons if they fail to meet their tax obligation or for failure to meet tax compliance requirements [1]. This may include instances where individuals fail to file returns, have submitted inaccurate information, or have not paid due tax. If a taxable person's deregistration request is accepted by FTA, no further payments or filings will have to be made.

Avail the Services of  Top Tax Consultants in the UAE

Tax professionals can help companies navigate corporate tax laws and regulations in the UAE, as well as assist with tax outsourcing activities such as the filing of returns and making payments on behalf of taxable persons. Top tax consultants in UAE provide expert advice on how to make sure that all of the necessary requirements are met in order to ensure compliance with the corporate tax Law. Thus, contact us today and we shall be happy to assist you. 

Read More: A Complete Corporate Tax Compliance Guide for Business 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.