Corporate Tax Registration

In accordance with the recent amendments to the Corporate Tax Law in the United Arab Emirates (UAE), effective as of 2024, Reyson Badger reiterates its commitment to offering professional and specialized corporate tax registration services in UAE . Ensuring that our clients comply with the proper requirements and regulations of the UAE government remains at the heart of our primary objective. Effective 1 March 2024, entities required to register for UAE Corporate Tax but failing to do so may incur an administrative penalty of AED 10,000, as prescribed in Cabinet Decision No. 10 of 2024.  
The MoF announced in January 2022 that they would bring in Corporate Tax on the business's net profit. Following that, the corporate tax came into effect on 1 June 2023 and 1 January 2024, depending on the financial year of the respective businesses. As soon as the Corporate Tax was announced, most of the auditors and Audit Firms in Dubai came up with Corporate Tax Registration Services in the UAE . The UAE Government has strictly followed the best rules and regulations that have been put out by OECD (Organisation for Economic Co-operation and Development).  

Corporate Tax Registration Services  

Juridical Persons in the UAE, foreign juridical persons managed and controlled in the UAE, foreign juridical persons who operate through permanent establishments in the UAE or with a taxable nexus in the UAE, and natural persons engaged in a business activity must register for Corporate Tax in the UAE.

Upon completing the corporate tax registration services in Dubai, the registered person/entity will receive a Tax Registration Number. Tax returns for a tax period should be filed within nine months of the effective end date of the period. As specified by the Minister, some cases excluded from corporate tax must be filed separately with the Federal Tax Authority.

Who Needs to Register for Corporate Tax in the UAE?

All persons designated by the Corporate Tax law as taxable persons must register for UAE Corporate Tax and obtain a TRN, regardless of whether they currently have taxable profit. The following companies/persons are required to register for Corporate Tax in UAE.

1. Companies Registered in the UAE  

Any business incorporated in the UAE on the mainland or in a free zone has to register for corporate tax if it conducts business. Depending on the nature of the business, there are also opportunities for exemptions.

2. Revenue Threshold  

Registration is required for entities classified as taxable persons- it is not determined merely by meeting a revenue threshold.

3. Free Zone Enterprises  

Free zone entities that qualify for a 0% corporate tax rate must still register for corporate tax and submit required filings to retain their qualifying status.

4. Foreign Enterprises with Fixed Presence in UAE  

Foreign bodies with a fixed presence, with branches or long-term contracts in the UAE, must register for corporate tax.

5. Exempted Bodies  

Bodies such as governmental agencies or qualifying public benefit organizations may be required to register to evidence their exemption status.

6. Individual Freelancers  

Natural persons (freelancers or self-employed) whose turnover from business activities exceeds AED 1,000,000 in a calendar year are required to register for corporate tax.

Points to Remember  

• Register within the timeline, so that you do not face fines, and follow the guidelines provided by the FTA.
• Check the FTA website regularly for latest updates and news, so you do not break tax rules due to the threshold or law.
• Free zone businesses must still register even if their tax is reduced or exempted.

Who is Exempt from Corporate Tax?  

In the UAE, certain entities and individuals are exempt from Corporate Tax under specific conditions. However, even if an entity is exempt, it may still need to register with the Federal Tax Authority (FTA) and comply with certain administrative requirements. The following entities are generally exempt from Corporate Tax in the UAE:

• Government Entities: Departments, authorities, and other public institutions that are part of the federal or emirate governments are exempt from CT.
• Government-Controlled Entities: Companies wholly owned and controlled by the government, provided they meet specific criteria, are exempt.
• Extractive Businesses: Businesses engaged in the extraction and exploitation of natural resources, such as oil and gas, are exempt from CT.
• Non-Extractive Natural Resource Businesses: Entities involved in non-extractive activities related to natural resources may also qualify for exemption.
• Public and Private Pension or Social Security Funds: Funds established to provide retirement or social security benefits are exempt from CT.
• Qualifying Investment Funds: Investment funds that meet certain regulatory criteria can benefit from CT exemptions.
• Wholly Owned and Controlled UAE Subsidiaries of Certain Exempt Persons: Subsidiaries that are entirely owned and controlled by exempt entities may also be exempt from Corporate Tax.

What Documents are Required for Corporate Tax Registration in UAE?  

These are the fundamental paperwork requirements for the registration procedure. However, there can be further requirements or actions necessary based on the company's specific structure or if you are a foreign company.

• Valid Trade License or Certificate of Incorporation
• Identity Documents of Authorized Signatories (Passport/Emirates ID)
• MoA/PoA (Memorandum of Association/Power of Attorney)
• Financial Statements or Equivalent Supporting Documentation
• And any other documents requested by the FTA depending on the entity structure

Essential documents for Corporate Tax Registration in UAE

Overview of Corporate Tax Registration Process  

Corporate Tax is registered through the Emara Tax Portal of the FTA. EmaraTax is the official online portal that can be used to register for taxes, make VAT payments, comply with regulations, file returns, and de-register. The user may create a new account or login with their existing account if they already have one. It is highly likely that you already have an account if you have already registered for VAT. It is also possible to access the portal via the UAE Pass if you do not have an FTA  account.

Corporate tax registration services in Dubai can be conveniently completed through the Emara Tax Portal. Firstly, login to the portal and then add taxable person. As the next step, open the corporate tax registration portal and fill all the necessary fields. Review the details and click the check box to confirm the details. Finally, click submit button to complete the registration process. You can refer our article for more detials on the step-by-step corporate tax registration process .  

Download Official Corporate Tax Registration Guide

What Happens After Submitting Your UAE Corporate Tax Registration?  

Following the submission of an application, FTA will approve, reject, or request resubmission of all necessary information and subsequently inform the applicant.

• A notification will be sent to you by email if the FTA requires any additional information concerning your application.
• On Acceptance of your Corporate Tax Registration, the FTA would inform you of the decision.
• Your Application Status on the Dashboard would be updated accordingly. Check your Corporate Tax Registration dashboard subsequently.

Corporate Tax Registration Deadlines  

Important Note  

Failure to register within the above timelines will attract administrative penalties under Cabinet Decision No. 75 of 2023

Exempt Persons:   

Entities Exempt from Corporate Tax:   Certain exempt entities are still required to register for CT. The deadlines for these entities are specified in the FTA's Decision No. 3 of 2024.

Upcoming Corporate Tax Registration Deadline UAE  

The United Arab Emirates' Federal Tax Authority (FTA) has set the corporate tax registration last date as March 31, 2025, for natural persons conducting business activities within the UAE to register for Corporate Tax. It's always advised to refer the FTA website for latest news and updates on Corporate Tax.

Penalties for Non-Compliance with Corporate Tax Registration in UAE  

In February 2024, the Ministry of Finance (MoF) issued Cabinet Decision No. 10 of 2024, which published an adjustment to the Violations and Penalties concerning the terms of Cabinet Decision No. 75 of 2023 on the administrative penalties for violations of the application of Federal Decree-Law No. 47 of 2022. According to Cabinet Decision No. 10 of 2024, the Corporate Tax registration penalties will take effect on March 1, 2024. 

Businesses that do to comply with the Corporate Tax registration in the UAE will face an AED 10,000 penalty from March 1, 2024. For businesses with tax periods in January or February, registration must be completed by May 31, 2024. This would be the first tax period undergoing the registration process, and subsequently will be followed by other dates.

Penalties for not completing corporate tax registration in the UAE

Expert Corporate Tax Registration Services in UAE  

Get expert guidance and support from Reyson Badger, one of the top corporate tax registration service provider. Our team of seasoned professionals will help you navigate the complexities of Corporate Tax registration, ensuring you avoid penalties and focus on growing your business. Don't miss the deadline! Register for Corporate Tax today and secure your business's future. Get in touch with us to learn more about our Corporate Tax registration services in Dubai, and let us handle the complexities for you. Register now and ensure compliance with confidence!