How can a business deregister from corporate tax in UAE?
Businesses are required to apply for tax deregistration when they cease to be subject to corporate tax. The reason for deregistration can range from cessation to company liquidation. Such companies need to apply to the FTA within three months from the date of cessation.
The FTA will deregister your business if you have filed corporate tax returns, settled all of its corporate tax liabilities, and settled any penalties due for periods up to and including the date of cessation. The FTA may deregister a business based on available information if the person doesn’t apply for deregistration within the time frame or comply with the payment and filing obligations.
Any exemptions from UAE corporate tax?
Yes, the exemptions are :
- Businesses engaged in the extraction of natural resources are exempt from CT as these businesses will remain subject to the current Emirate-level corporate taxation.
- Dividends and capital gains earned by a UAE business from its qualifying shareholdings will be exempt from CT.
- Qualifying intra-group transactions and reorganizations will not be subject to CT, provided the necessary conditions are met.
What is the UAE corporate tax deadline for filing returns?
Taxable persons are required to file a corporate tax return for each tax period within 9 months from the end of the relevant period. The same deadline would generally apply for the payment of any corporate tax due in respect of the Tax Period for which a return is filed. E.g For a business whose first tax period begins on January 1, 2024 and ends on December 31, 2024, the return and payment must be filed between January 1 and September 30, 2025.
From where can I access a step-by-step guide to register for corporate tax in UAE?
The FTA has released a manual to help you navigate through the portal and submit the Corporate Tax Registration application. Click here to download the Corporate Tax Registration User Manual.
Where do I register for corporate tax in UAE?
You can log in into the EmaraTax account (https://eservices.tax.gov.ae/#/Logon) using your login credentials or using UAE Pass. If you do not have an EmaraTax account, you can sign-up for an account by clicking the ‘sign up’ button. If you have forgotten your password, you can use the “forgot password” feature to reset your password.
If you log in via your registered email and password, the EmaraTax online user dashboard will be displayed on successful login. If you had opted for 2-factor authentication, you would be required to enter the OTP received in your registered email and mobile number to successfully log in.
If you wish to log in via UAE Pass, you will be redirected to UAE Pass. On successful UAE Pass login, you will be redirected to the EmaraTax online user dashboard.
What documents are required to register for corporate tax in UAE?
To register for corporate tax in UAE, businesses must be ready to submit the required documents. The process for corporate tax registration and fee submission will be done online. The following documents are required for corporate tax registration in UAE.
- Copy of Trade License (must not be expired).
- Passport copy of the owner/partners who own the license (must not be expired).
- Emirates ID of the owner/partners who own the license (must not be expired).
- Memorandum of Association (MOA) – Or – Power of Attorney (POA).
- Concerned person’s contact details (Mobile Number and E-mail).
- Contact details of the company (complete address and P.O. Box).
- Annual Financial Audit Report.
Who needs to register for corporate tax in UAE?
Corporate tax in the UAE shall be imposed on the taxable income of businesses at the following rates:
- A 0% corporate tax rate applies to taxable income up to AED 375,000
- A 9% corporate tax rate applies to taxable income over AED 375,000
- A 15% corporate tax rate applies to all multinational corporations subject to OECD Base Erosion and Profit-Sharing laws that belong within Pillar 2 of the BEPS 2.0 framework (combined worldwide revenues in excess of AED 3.15 billion).
What is the aim of introducing corporate tax in the UAE?
Ever since the UAE announced the introduction of corporate tax from 1st June,23, it has created a buzz among businesses and tax professionals. With its introduction, UAE is set to become 4th among the GCC countries to introduce a federal corporate tax.
The aim of introducing the federal corporate tax in UAE is to further strengthen the country’s position as a world-leading hub for businesses and investment and accelerate the strategic objective towards development and transformation. Also, the corporate tax concept helps meet international standards for tax transparency and avoids harmful tax practices.
View the MoF’s newly released Frequently Asked Questions that supplement your queries.
How is corporate tax in UAE calculated?
Corporate tax in UAE is calculated at 9% of the net profit shown in the company’s financial statements. The 9 % corporate tax will be levied only if the taxable net profit exceeds 375,000 AED. In other words, the net profit up to 3,75,000 AED is taxed at 0%. For example, If the net profit is 4,75,000 AED, the corporate tax will be 9,000 AED (4,75,000-3,75,000 X 9/100)
What are the businesses or incomes that are outside the scope of corporate tax?
Given the profit threshold of 3,75,000 AED, all businesses that exceed the threshold have to pay the corporate tax. However, certain types of business or income are exempt from corporate tax. Below is the list of companies or income exempt from corporate tax:
- Individuals will not be subject to corporate tax. As a result, any income from employment, real estate, investments in shares, and other personal income unrelated to a trade or business in the UAE will be exempt from corporate tax.
- Not applicable to foreign investors who do not carry on business in UAE.
- Corporate tax incentives are currently being offered to free zone businesses that comply with all regulatory requirements will continue.
- Capital gains and dividends received by UAE businesses from its qualifying shareholdings are exempt from corporate tax.
- Not applicable for qualifying intragroup transactions and restructurings.