What is EmaraTax & Its Role in Corporate Tax
EmaraTax is the official online tax platform that has been launched by the Federal Tax Authority (FTA) in the UAE. It simplifies all the tax related procedures, such as registering, filing, and compliance of corporate tax. Businesses are also enabled to handle their tax obligations through the system, which provides an end-to-end experience with UAE Pass to ensure a safe experience.
Companies can also pay their corporate taxes via EmaraTax, renew their information, submit returns and pay them in a single portal. Its duty is mainly to ease the compliance of taxation and transparency in the corporate taxation within the UAE. To further streamline financial operations and compliance, many organizations are now adopting the best ERP Dubai to integrate tax management and business processes efficiently.
Who is required to register to the corporate tax in the UAE.
Most businesses in the UAE have to be registered under corporate tax. All juridical persons (company or any other entity) created in accordance with the laws of the UAE, such as those in free zones, are required to register with EmaraTax to obtain corporate tax. Also, foreign organizations that receive income due to business activities in the UAE can be also registered.
Registration Threshold
Corporate tax in the UAE is 9%, which is paid by taxable profits that are over AED 375,000 per financial year. Any company that earns less than this amount is only obliged to register but will not pay any tax unless the profits accrue below the exempt limit.
Exempted Entities
There are also some entities, which do not need to be registered under the corporate tax, including:
- Government organizations and government sponsored organizations that are undertaking sovereign activities.
- Extractive and non-extractive natural resource businesses, which are taxed by the local emirates.
- Authorized public benefit groups, charities and investment funds granted by the FTA.
Pension or social security funds which are government-identified.
Such entities are not required to be registered unless they carry out non-exempt business that would result in taxable income.
Registration Process in EmiraTax step-by-step.
Corporate tax registration through EmaraTax is a well-organized process that is meant to be accurate and compliant. The step-by-step guide is provided below:
Step 1: Log-in through UAE Pass.
Visit the EmaraTax site and enter UAE Pass the single digital identity to access the services of the government. This is a safe user login where your identity and business information is automatically checked on the FTA system.
Step 2: Dashboard Overview
After entering, go to your EmaraTax dashboard. Various types of taxes will be found here including VAT, Excise and Corporate Tax. Choose Corporate Tax among the possible options.
Step 3: Choose to register Corporate Tax.
Under Corporate Tax, click on Register. The system will take you through a few forms where you will be required to enter the information regarding your business, finances, and ownership.
Step 4: Complete Business Information.
Provide details such as:
- Trade license number and the authority in which it is issued.
- Name and type of establishment as a legal entity.
- Business activity details
- Start and end dates of the financial year.
- Contact and address details registered.
- Existing Tax Registration Number (TRN) where possible.
Step 5: Provide Supportive Evidence.
Add the necessary documents (mentioned in the following list). Make certain that all files are clear, current and reflect the information typed in the form.
Step 6: Review & Submit:
Once you have completed all the sections take a closer look at your application. After confirmation, press submit and send your registration request to the FTA. After the submission, you will be acknowledged by receiving a confirmation message.
Forms to be filled to register EmaraTax Corporate Tax.
You will need the following documents in digital form (PDF or JPEG) before you begin to register:
- Trade License- issued by your respective government or free zone.
- Memorandum of Association (MOA) or Articles of Association- displaying ownership and business structure.
- Emirates ID and Passport of the owner, partners or the authorized signatories.
- Financial Records- to back profit information- such as income statements or a balance sheet.
- Business Contact Information- address, phone number, email.
- Any other documents in FTA specifications to your type of business.
The availability of these documents in order will eliminate time wastage and make registration process easier.
FTA Checking and Issuing TRN.
The application is submitted to the Federal Tax Authority where the application is reviewed to ensure accuracy and eligibility. The validation is done by checking trade licenses, ownership and financial data.
The business will be assigned with a Corporate Tax Registration Number (TRN) in case it is approved and this will be a unique number which is used in all tax related operations.
How Long It Takes
Generally, FTA verification and issuance of TRN can be done within 2025 working days. Nevertheless, unfinished or wrongful documentation can prolong the time frame.
Common Errors to Avoid
- Giving irregular trade license information.
- Submission of documents that have expired or are not clear.
- Manipulation of the financial year dates.
- Lack of connecting the correct UAE Pass account to registered entity.
The accuracy in the application will save time and prevent the rejection or revision requests.
What Are the Next Steps after Registration.
When you have your corporate TRN, then you will have your own company as a registered taxpayer in the UAE. But, you are still required to pay taxes even after registration.
Getting access to Your Corporate Tax Account.
Once approved, your corporate tax account would be shown in your EmaraTax dashboard. Here you can control your filings, and see payment records as well as amend company details where necessary.
Filing Obligations
The registered businesses are required to submit annual corporate tax returns using EmaraTax, and normally within a 9-month period of the financial year to which the returns are relevant. As an illustration, in case your financial year is until December 31, your corporate tax filing is to be done before the end of September the following year.
Refreshing Business Information.
The information that you have on the EmiratesTax should be updated in case your company is experiencing any changes like change of address, change of owners, or renewal of the license to keep up with the compliance. The FTA stipulates that all the registered entities must maintain information that is relevant and accurate.
How SowaanERP Helps
With the help of SowaanERP and EmaraTax, it is possible to simplify the management of your corporate taxes.
Auto-Data Sync with EmaraTax
SowaanERP is a system that automatically links your business data- invoices, financial records and tax calculations directly into EmaraTax. This makes your information always up to date and correct before submission.
Minimizes Manualizing and Control Risk.
Errors on manual entries may result in fines or delays. SowaanERP reduces these risks by automating the process of sharing of data and making sure that your financial records are a perfect match to the requirements of FTA.
SowaanERP allows quick and stress-free registration, filing and reporting of corporate taxes with real time updates and compliance.
Get an ERP demo EmaraTax ready today and be sure that your business does not go out of compliance with the UAE tax laws.
The FTA has stipulated certain registration dates on the basis of the month of issuing the license of the company. To prevent punishments, most entities have to be registered in their corporate tax by mid-2025. Businesses are advised to look at FTA portal to know their allotted deadline.
EmaraTax is the virtual governmental system of online taxation by the Federal Tax Authority which enables companies to register, file and manage tax like VAT, Excise and Corporate Tax. It is linked to the UAE Pass to have access to it securely and conveniently.
At the moment, corporate registration is free using EmaraTax. Nevertheless, there are fines in the case of late registration or the failure to adhere to FTA rules.
