Introduction of the corporate Tax (CT) for the United Arab Emirates (UAE) represents a significant change in the business environment of the country. This tax applies to corporations and other legal entities doing activities in the UAE. In the UAE, the Federal Tax Authority (FTA) requires companies to sign up for corporate tax so that they can comply with UAE’s tax laws.
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Documents Required for Corporate Tax Registration in UAE
Prior to beginning the corporate tax registration process, companies must make sure they have the required documents in their possession. The FTA has established specific requirements for documents to facilitate seamless registration. Below is a listing of the necessary documents required:
For Individuals:
Passport Copy (of the individual)
Emirates ID Copy (if applicable)
Trade License (if the individual operates under a sole proprietorship)
Memorandum of Association (MOA) (if applicable)
Tenancy Contract / Ejari Certificate (to confirm business address)
Bank Account Details (used for business transactions)
Financial Statements (recent financial records to assess taxable income
For Corporate Entities:
Trade License: A valid trade license of the business.
Emirates ID If it is applicable: The Emirates identification number of the business’s owner or a signatory authorized by the business owner.
Passport Copy – The passport duplicate of the business’s owner directors, shareholders and shareholders.
Memorandum of Association (MOA): A firm’s MOA as well as Articles of Association to verify the structure of the company.
Tenancy Contract / Ejari Certificate
Contact Information for the Company – The registered address of the business along with email address, as well as telephone number.
Bank Account Details – UAE corporate bank account details.
Financial Statements – The most recent financial statements (if there is one).
Tax Identification Number (if required)- The Tax Identification Number (if applicable) is required if the business is registered for VAT or other tax.
Additional Supporting Documents – Any document that is required by the FTA in accordance with how the firm operates.
How to Register for Corporate Tax in UAE: Step-by-Step Guide
Businesses must register for Corporate Tax (CT) in the UAE to meet the taxable income threshold. Ensure that your business falls within the scope of UAE Corporate Tax and register to pay corporate tax in uae by logging into the FTA’s web portal.
Step 1: Create an Account on the Federal Tax Authority (FTA) Portal
Visit the FTA website at eservices.tax.gov.ae.
Select “Sign Up” if you don’t have an account already for uae corporate tax registration.
Fill in the required information like:
Business Name
Email Address
Phone Number
Trade License Number
Verify your email address by clicking the link that was sent to your registered email address.
Step 2: Login to the FTA Portal
Utilize the credentials you have set (email as well as password) to login into the FTA account.
Click on corporate tax section.
Step 3: Start the Corporate Tax Registration Application
Click on “Register for corporate tax.”
Input the details of your business:
Trade License Information
Corporate Organization Structure (Sole Proprietorship LLC, Free Zone Entity and more.)
Shareholders Information
Company Address & Contact Details
Step 4: Upload Required Documents
Upload scanned copies the documents required by law (refer to the above list).
Check that the documents are clean and are in the format PDF.
Step 5: Review and Submit the Application
Take the time to read all the information entered.
Double-check the documents you have uploaded.
Hit “Submit” to complete the application.
Step 6: Receive confirmation from FTA
Once you have submitted your form, you will be sent an acknowledgement email from FTA.
The FTA will examine the application and request additional documents if necessary.
After approval The corporate Tax Registration Number (TRN) will be issued.
Corporate Tax Registration Deadline in UAE
The Federal Tax Authority (FTA) has set a corporate tax registration deadline uae in order to ensure compliance. The deadlines are depending on the date of establishment of the business:
For Businesses Established Before 1 June 2023:
Businesses must apply for registration within 9 months from the close of their first fiscal year beginning after June 1, 2023.
Example: If you’re fiscal year closes on December 31 2023, you have to be registered on or before September 30, 2024.
For Businesses Established After 1 June 2023:
Companies must sign up prior to the due date for their tax return’s first installment.
Penalties for Late Registration
The FTA has introduced strict sanctions for companies that fail to complete their registration on time.
Businesses could be subject to sanctions, fines or other penalties for compliance.
Obligations After Corporate Tax Registration
Following successful registration for corporate tax Businesses must abide by FTA regulations to avoid penalty. The following are the main obligations post-registration:
1. Maintain Proper Accounting Records
Businesses are required to keep the financial records of their clients for at least seven years.
A proper accounting system ensures accurate tax filing, and helps avoid penalties.
2. File Corporate Tax Returns Annually
Businesses are required to file an annual tax return for their business within nine months of the close of the financial year.
The tax return should include information on revenue, expenses and net profit or loss.
3. Pay the Corporate Tax on Time
Corporate Tax Rate 9 percent on taxable income that is greater than AED 375,000.
Businesses must determine the tax due on their corporation and settle any obligations prior to the deadline.
4. Update the FTA in Case of Changes
If there are any changes to the ownership of the company, its trade license or address, companies must change their information on the FTA portal immediately.
5. Conformity with tax Audits
The FTA has the power to carry out tax audits after uae corporate tax reform 2025.
Businesses should cooperate and provide required financial documents.
Mistakes to Avoid During Corporate Tax Registration
In order to ensure a smooth corporate tax registration, businesses must be aware of the following common errors:
1. Providing Incorrect Information
Incorrectly entering information (e.g. number of Trade license, corporate structure) could result in delays or rejection.
2. Submitting Incomplete Documents
Make sure all documents required are correct and uploaded.Documents that are missing or not correct could cause delays in processing.
3. Failing to Register Before the Deadline
In the event of a late registration, it could result in fines and legal issues.
4. Not Maintaining Proper Financial Records
Inadequate bookkeeping could lead to errors in tax filing which can result in penalties.
5. Ignoring FTA Notifications
The FTA may require additional information or updates to documents.Businesses must check regularly for updates to their FTA portal account and emails.
Conclusion
Registering for corporate tax is a legal requirement for all businesses operating in the UAE. Understanding the process for how to calculate corporate tax in uae, registration and the required documentation deadlines, and post-registration obligations is crucial to make sure that you are in compliance. Follow the corporate tax registration guide, avoid common errors and finish the registration to fulfill compliance with UAE Tax laws.
FAQs
The corporate tax applies to businesses with a taxable profit exceeding 375,000 AED. It also applies to freelancers, sole proprietors, and self-employed individuals and international companies with a physical presence or operations generating UAE-sourced income.
Corporate tax registration is mandatory for all companies operating in the UAE and includes Free Zone companies regardless of whether they are eligible for the tax rate of 0%.
Free Zone entities are eligible for their “Qualifying Free Zone Person” (QFZP) status that allows companies to receive tax exemptions for corporate entities when they meet the Federal Tax Authority (FTA) standards.
Corporate Tax registration status can be checked by logging into the Federal Tax Authority (FTA) portal at eservices.tax.gov.ae. Login and input the Tax Registration Number (TRN) or Business License Number to check the status of registration.
To sign up to pay Corporation Tax registration in UAE,
- Businesses should go to the FTA online portal and register an account.
- After having logged in, go to the Corporate Tax section
- Then click “Register for Corporate Tax”.
Businesses must also upload the required documents, such as permits for trade, Emirates ID, passport copies, as well as copies of passports, and the Memorandum of Association (MOA).
VAT and Corporate Tax are two different kinds of taxes to the UAE. VAT is a 5% consumption tax that is imposed on goods and services. Businesses collect the tax from customers before paying it back to the FTA.
However, Corporate Tax is a tax of 9% on profits of businesses over the amount of AED 375,000 that is paid directly to businesses, not consumers.