In recent years, the UAE has made significant strides in aligning its tax system with global standards, and one of the most important changes is the introduction of corporate tax under Federal Decree Law 47. Whether you’re a business owner in a Free Zone or a local enterprise, understanding how to properly register for corporate tax is now essential for staying compliant and avoiding penalties. As a result, corporate tax registration services in Dubai are now essential for many firms looking to comply with the new regulations.
If you’re ready to ensure your company is fully compliant and avoid costly mistakes, read on for a step-by-step guide to getting your Corporate Tax Registration Number—and setting your business up for success in the UAE’s rapidly evolving tax landscape.
What Is Corporate Tax Registration?
Corporate tax registration involves businesses becoming officially recognized as taxable entities by the UAE tax authority. A Tax Registration Number (TRN) is required for all taxable persons, whether individual or a partnership. This number ensures that the business is identified by the Federal Tax Authority (FTA) and is subject to corporate tax in Dubai and across the UAE.
Once registered, the business is obligated to adhere to corporate tax laws, including filing returns and paying taxes on taxable income over AED 375,000. Companies with income below this threshold are not subject to corporate tax.
For assistance, many businesses turn to corporate tax advisors or corporate tax accountants to navigate this process efficiently and ensure full compliance with UAE corporate tax law.
How to Register for Corporate Tax in UAE: A Step-by-Step Guide
Under Federal Decree Law 47, as mandated by the Federal Tax Authority (FTA), all businesses in the UAE, including those located in Free Zones, are required to obtain a Corporate Tax Registration Number. This includes both regular taxable persons and exempted persons who are also obligated to register.
In addition, businesses must submit their corporate tax returns and pay any due taxes within nine months of the end of the tax period. To streamline the registration process, the EmaraTax platform has been set up by the FTA, allowing businesses to complete their corporate tax registration easily and efficiently.
Here’s a simple step-by-step guide to help you complete your corporate tax registration in UAE:
Step 1: Log into EmaraTax
If you already have an account, simply log in using your credentials or access the platform via UAE Pass. If you’re new to the system, click the ‘Sign Up’ button to create a new account.
Step 2: Link Your Taxable Person
Once logged in, you’ll see a list of Taxable Persons associated with your profile. If none are linked yet, you’ll need to add one. This is an essential step to ensure your registration is connected to the correct business entity.
Step 3: Start Corporate Tax Registration
From your dashboard, locate the Corporate Tax section and click ‘Register’. You’ll be directed to a new page outlining the registration guidelines. Read through the instructions, check the box to accept the guidelines, and then click ‘Start’ to begin the application process.
Step 4: Choose Your Entity Type
Select your business’s Entity Type from the dropdown menu. This will help tailor the form fields according to your business structure. Make sure to fill out all the necessary details before proceeding to the next step.
Step 5: Provide Business Activity Details
In the ‘Business Activities’ section, click ‘Add Business Activities’ and input the relevant activities related to your trade license. Ensure all required information is complete before submitting this section.
Step 6: Add Ownership Details (If Applicable)
If your business is owned by individuals or entities with 25% or more ownership, click ‘Add Owners’. You’ll need to provide the mandatory information for each owner before continuing.
Step 7: Add Branch Details (If Applicable)
Does your business operate through local branches? If so, click ‘Yes’ and provide the relevant details for each branch, including the associated trade license information, business activities, and owners.
Step 8: Enter Contact Information
Next, you’ll reach the ‘Contact Details’ section. Enter your business’s registered address and any other contact information required. This ensures the FTA has up-to-date information for communication.
Step 9: Add Authorized Signatories
Move on to the ‘Authorized Signatory’ section. Click ‘Add Authorized Signatory’ to include details of individuals who are authorized to act on behalf of your business. Ensure you provide all necessary information for each signatory.
Step 10: Review Your Information
Once all sections are complete, click ‘Next Step’ to reach the ‘Review and Declaration’ page. Double-check all the information you’ve entered. Mark the checkbox to confirm that the information is accurate and complete.
Step 11: Submit Your Application
Finally, click ‘Submit’ to send your corporate tax registration application through the EmaraTax portal. Once submitted, the FTA will review your application, and you’ll receive your Corporate Tax Registration Number once approved.
If you need assistance with the corporate tax registration process, don’t hesitate to contact corporate tax experts who can guide you through the complexities and ensure your business complies with all UAE corporate tax laws.
Fees for Corporate Tax Registration
Once registered, businesses will need to pay a 9% corporate tax on taxable income exceeding AED 375,000. Any income below this threshold is exempt from corporate tax. For further assistance, businesses can consult corporate tax advisors to optimize tax planning and ensure that they are in full compliance with all regulations.
Required Documents for Corporate Tax Registration:
The documents required for corporate tax registration vary based on whether the applicant is a natural person or a legal entity.
For Natural Persons:
- Trade License (if applicable)
- Emirates ID or Passport of the applicant
For Legal Persons:
- Trade License
- Emirates ID or Passport of the authorized signatory
- Proof of authorization for the authorized signatory
Accepted file types for document submissions include PDF and Word, with a file size limit of 5MB.
Exemptions from Corporate Tax Registration Services in UAE
Not all businesses are required to register for corporate tax in the UAE. The following entities may be exempt:
- Governmental Organizations: Exempt from corporate tax.
- Entities Under Government Control: Certain entities may be exempt based on Cabinet Decisions.
- Natural Resource Companies: Companies involved in the extraction of natural resources may be exempt if approved by the Ministry of Finance.
- Public Entities: Organizations that benefit the public, including certain investment funds and pensions, may be exempt with approval from the Federal Tax Authority (FTA).
- Government-Owned Subsidiaries: If a business is fully owned and managed by a government entity, it may be exempt from corporate tax.
For further details and professional support, consider consulting with corporate tax services in UAE to clarify specific exemptions or requirements that may apply to your business.
Conclusion
Navigating the complexities of corporate tax registration in UAE can be challenging for many businesses. However, by seeking professional guidance from corporate tax advisors like Bestax Chartered Accountants, businesses can ensure they are compliant with UAE corporate tax law while optimizing their tax strategy. With their expertise, businesses can achieve success and stay ahead in a competitive market, while also meeting their corporate tax obligations in Dubai and the UAE.
FAQs
Can Overseas Companies Register for Corporate Tax in Dubai?
Yes, if a foreign company has taxable income in Dubai, it must register for corporate tax. Understanding the requirements for foreign entities is essential, and seeking advice from a tax expert is recommended.
How Does a Business Start the Corporate Tax Registration Process in Dubai?
To begin, businesses must submit the required documents and financial details to the Federal Tax Authority through the Emaratax platform. The process involves filling out a registration form and complying with the necessary tax procedures.
Are There Any Corporate Tax Exemptions or Incentives Offered in Dubai?
Yes, certain sectors or activities may qualify for exemptions or incentives under UAE corporate tax law. These exemptions can vary and may depend on the nature of the business and any applicable government decisions. Consulting a corporate tax advisor is essential to understand potential exemptions.