Corporate tax registration is a vital requirement for businesses operating in the UAE. Failure to adhere to the regulations and standards set by the Federal Tax Authority (FTA) results in substantial fines for taxable entities. The corporate tax rate is 0% for taxable income up to AED 375,000, and for income exceeding this threshold, it is nine percent (9%). Seeking the services of tax consultants in UAE is advisable to ensure preparedness for corporate tax registration, filing, and ongoing compliance with tax standards.
How to Register for Corporate Tax in the UAE?
Taxable entities must follow these steps for corporate tax registration in the UAE:
- Business License Registration:
Register the business license with the Federal Tax Authority to obtain a unique Tax Registration Number (TRN), essential for companies engaged in taxable activities in the UAE.
- Online Registration Form:
Complete an online registration form provided by the FTA, furnishing specific details about the corporation, such as legal name, address, and nature of business activities.
Submit supporting documents, including the trade license and articles of incorporation.
- TRN Issuance:
Upon completion, the corporation receives a Tax Registration Number, which must be used in all tax-related records, including tax returns and invoices. Safeguard the TRN as it is intricately linked to the corporation's financial activities in the UAE.
- Ongoing Tax Obligations:
Comply with various tax-related obligations, including maintaining accurate financial records, timely submission of tax returns, and payment of all applicable taxes.
UAE Corporate Tax Registration Documents
To initiate corporate tax registration in the UAE, businesses must provide the following documents:
- Trade License
- Shareholders/Directors' Passports
- Emirates ID Copies
- Memorandum of Association (MOA) or Power of Attorney (POA)
- Share Register and Share Certificate
- Financial Statements
- Bank Statements
- Audited Statements (if applicable)
- Contact Information
- Bank Account Information
- FTA Portal Login Credentials (if registered for VAT)
Additionally, other business details, identification information, and contact details of owners and partnerships are required. It is essential to verify and submit accurate details before completing the registration form.
Corporate Registration Timeline
As per the UAE corporate tax law, corporations have up to 9 months from the conclusion of the applicable tax period to file their tax returns and complete the registration process.
Corporate Tax Penalties for Registration Noncompliance
Penalties for noncompliance with corporate tax registration include:
- Failure to Keep Required Records and Documents: A penalty of 10,000 dirhams for each violation.
- Failure to Keep Arabic Copies of Required Records: A penalty of 5,000 dirhams for non-provision of Arabic copies.
- Failure to Deregister within the Time Limit: A penalty of 1,000 dirhams for each violation.
- Failure to Inform About Misinformation: A penalty of 1,000 dirhams for each violation.
Choosing Tax Consultants in the UAE
Corporate tax advisors play a significant role in ensuring an efficient and accurate registration process. They assist in organizing necessary documents, completing the registration promptly, and guiding tax planning and compliance, contributing to the smooth operation of businesses in the UAE.
Read More: UAE Corporate Tax : An Explanatory Guide