01 July 2023
Attention all business owners and entrepreneurs! Are you aware of the corporate tax system in the UAE? As a thriving hub for economic growth, it is crucial to understand the process of registering your company for corporate tax. Don't let taxes be an obstacle to your success. In this blog post, we will guide you through the steps to register for corporate tax in the UAE and ensure that you are on track with compliance regulations. Let's get started!
Taxable persons are required to file Corporate Tax Returns for a Tax period within nine months of the end date. This deadline is usually applied to the payment of Corporate Taxes due for the Tax Period in which the return was filed.
The Authority will require the Taxable Person or Independent Partnership to register for corporate tax and obtain a Tax Registration Number. Tax authorities must have an exclusive judgment on corporate tax registration in the UAE as soon as a person becomes a Taxable Individual.
The tax person will be charged the standard Corporate Tax rate of 9% for taxable incomes above AED 350,000. For taxable earnings up to AED375,000, the rate is 0%.
The ultimate objective of corporate tax is to:
Follow these easy steps to register for corporate taxes in the United Arab Emirates:
1) log in to the EmaraTax Portal by clicking on eservices.tax.gov.ae and entering your registered email and password. You can create an account if you do not have one by clicking on the "sign-up" button. You will need to reset the password if you already have an FTA account but have not yet migrated. EmaraTax can be accessed with UAE Pass.
2) If the list is empty, then you will need to add a new taxable person. Enter the profile name in both English and Arabic. Select the preferred communication language, then click "Create."
3) Click 'View Dashboard' after selecting the taxpayer from the list and then click on the Corporate Tax tile in the Taxable Person dashboard.
4) Click 'Start" to begin the CT registration process. Read the instructions and guidelines, mark the checkbox, and confirm.
5) Provide details in the section for entity details. Include the type of entity, the sub-type, and the date of incorporation. If you have registered for VAT, some of the information will be filled out automatically. After filling in all the mandatory fields, click 'Next step' to move on to 'Identification details.'
6) Provide details in the section identifying details. Include details such as the business license, the activities of the company, the ownership information, and the local branch. After filling in all the mandatory fields, click 'Next step' to proceed to 'Contact details.'
7) Enter the address of the registered business in the Contact Details section. In the event that the business has more than one address, you will need to provide the details of where the majority of day-to-day activities take place. After filling in all the mandatory fields, click 'Next step' to move on to the section titled 'Authorized Signatory.
8) Enter the information of the authorized signature in the section for authorized signatory. Upload the necessary documents, such as a copy of an Emirates ID/Passport of the signatory authorized and proof of Authority. If needed, you can add multiple authorized signatories. After filling in all required fields, click 'Next step' to move to the section 'Review and Declaration.
9) Check the box to confirm that the information is correct. Click 'Submit" to submit your Corporate Tax Registration Application.
10) The FTA will either approve or reject the application after it is submitted and inform the applicant of the outcome.
Registering for corporate tax in the UAE may seem like a daunting task, but with the right guidance and understanding of the process from a tax consultant in UAE, it can be done smoothly. By following the steps outlined above and seeking expert advice when necessary, businesses operating in the UAE can ensure they comply with all legal requirements related to corporate tax. It is important to note that while registering for corporate tax may seem like an additional burden on businesses, it also comes with benefits such as access to government contracts and other incentives. Additionally, paying taxes is essential for contributing to a thriving economy in which businesses can grow and prosper. Registering for corporate tax in the UAE should not be taken lightly by any business entity operating within its borders. It is crucial to stay compliant with local laws and regulations, seek expert advice where necessary, and enjoy reaping benefits from being law-abiding corporates.