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UAE Corporate Tax Registration - How to register and filing

 The UAE has introduced a Corporate Tax (CT) regime, marking a significant shift in the country’s fiscal landscape. As businesses adapt to this new requirement, understanding the registration and filing process is crucial. Here’s a detailed guide to help you navigate through UAE Corporate Tax registration and filing.



Understanding UAE Corporate Tax

Corporate Tax in the UAE is a federal tax levied on the net income of corporations and other businesses. The main objectives are to cement the UAE's position as a leading global hub for business and investment, accelerate the UAE’s development and transformation to achieve its strategic objectives, and reaffirm its commitment to meeting international standards for tax transparency and preventing harmful tax practices.

Who Needs to Register?

Businesses operating in the UAE, including those within free zones, are required to register for Corporate Tax if they exceed the threshold income set by the Ministry of Finance. This applies to:

  • UAE companies

  • Foreign entities with a permanent establishment in the UAE

  • Individuals conducting business in the UAE as specified in the relevant legislation

Steps for Corporate Tax Registration

1. Prepare Required Documents

Before you begin the registration process, gather the necessary documents:

  • Trade license

  • Certificate of incorporation or registration

  • Memorandum of Association (MOA)

  • Articles of Association (AOA)

  • Passport copies and Emirates ID of shareholders and directors

2. Access the Federal Tax Authority (FTA) Portal

Visit the Federal Tax Authority (FTA) website (www.tax.gov.ae) and log in using your credentials. If you don’t have an account, you will need to create one.

3. Complete the Online Registration Form

Fill out the Corporate Tax registration form available on the FTA portal. You will need to provide:

  • Company details (name, address, contact information)

  • Details of the business activities

  • Financial information

  • Ownership details

4. Submit the Registration Form

After filling out the form, review all the information for accuracy and submit the form. You will receive an acknowledgment receipt.

5. Receive the Tax Registration Number (TRN)

Once your application is processed, you will receive a Tax Registration Number (TRN). This number is crucial for all your future tax filings and correspondence with the FTA.

Filing Corporate Tax Returns

1. Determine the Financial Year

The financial year for Corporate Tax purposes in the UAE typically aligns with the Gregorian calendar, i.e., from January 1 to December 31. However, businesses can choose a different fiscal year subject to approval.

2. Maintain Accurate Financial Records

Ensure that your business maintains accurate and up-to-date financial records. This includes income statements, balance sheets, and records of expenses and deductions.

3. Calculate Taxable Income

Calculate your taxable income by deducting allowable expenses from your gross income. The Corporate Tax rate is applied to this taxable income to determine the tax liability.

4. Complete the Corporate Tax Return

Log in to the FTA portal and access the Corporate Tax return form. Fill in the required information, including:

  • Financial statements

  • Details of income and deductions

  • Tax liability calculation

5. Submit the Tax Return

Review the completed tax return for accuracy and submit it before the deadline. The deadline for filing the Corporate Tax return is usually six months after the end of the relevant financial period.

6. Pay the Tax Due

Upon submission of the tax return, you will be required to pay any tax due. Payment can be made via the methods specified by the FTA, including bank transfers and online payment options.

Important Considerations

  • Penalties for Non-Compliance: Failure to register, file returns, or pay taxes on time can result in significant penalties.

  • Audits: The FTA may audit your financial records to ensure compliance. Maintaining thorough and accurate records is essential.

  • Professional Assistance: Given the complexities involved, consider engaging a tax professional or consultant to assist with registration and filing.

Conclusion

Navigating the UAE Corporate Tax registration and filing process can be straightforward with proper preparation and understanding of the requirements. By ensuring compliance, businesses can avoid penalties and contribute to the country’s economic growth. For further details and updates, always refer to the FTA’s official website and guidelines.
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