The UAE Corporate Tax Registration deadline is here! Here is the step-by-step guide through the entire process of registering for corporate tax in UAE to ensure the right compliance with the law and to boost your financial business potential.
In this blog, we shall cover the in-depth understanding of UAE Corporate Tax Registration- How, When, and Who?
The Timeline for Corporate Tax Registration
As Per the Federal Tax Authority (FTA), Decision No. 3 of 2024, issued on 26th February 2024, on the timeline specified for registration of the taxable persons for corporate tax purposes, the FTA urges taxable persons subject to Corporate Tax to register in the system as soon as possible to avoid administrative penalties.
The Corporate Tax Registration deadline is starting from 1 May 2024 based on License Issuance date. Refer to our earlier blog for exact date for registration deadline:
Who needs Corporate Tax Registration in the UAE?
Before taking a deep dive into the complete registration process, it is important to know who is required to register for corporate tax in the UAE. All companies and establishments conducting business in the UAE are subject to corporate tax. This includes both resident and non-resident companies, as well as free zone and mainland entities. There may be certain exemptions that may apply depending on the type and size of the business. In such cases, it is recommended to consult the best corporate tax professional in UAE to determine your eligibility for Corporate Tax Registration.
Understanding the technical know-how of the entire tax registration process in the UAE
The corporate tax registration process in the UAE involves multiple steps which are listed below.
- Obtain Tax Registration Number (TRN)
The Tax Registration Number (TRN) is a unique number for your business and is required for all tax-related transactions in the country. For this, you will need to visit the FTA (Federal Tax Authority) website to fill in the form with the help of important documents which we will see in the next part of the article.
- Gathering required documents for registration
This includes –
In case of registrant is Natural Person:
- Emirates ID / Passport copy of the Taxable Person
In case of registrant is Legal Person:
- Emirates ID / Passport copy of the Authorized signatories
- A copy of a valid trade license issued by relevant authorities in the UAE
- Memorandum of Association (MOA) or Articles of Association (AoA) which outlines the company’s activities, shareholders, and share capital.
Accepted file types are PDF,DOC and Docx. The individual file size limit is 15 MB
- Submitting tax registration application
Submit your tax registration application through FTA’s portal online which requires the following information as details about your business including activities, turnover, and financial period, special considerations, if any. It is important to pay closer attention and double-check all information before applying to avoid any delay or complications in the later stage during the approval process.
- Review by the FTA for final approval
The approval by FTA would take some time to undergo a complete review to verify the information. It is crucial to respond immediately to any request issued by FTA for a hassle-free and smooth approval process.
- Obtaining TRN for Corporate tax
Tax Registration Number is a unique 15-digit number after finishing the VAT registration process by visiting the website. This involves applying for an account for login credentials. Follow the 8-step VAT registration which includes form filling, reviewing details, and submitting the form for FTA approval. Check the status of the VAT application, once approved, view your TRN.
- File for Corporate Tax in your tax period
Once the application is approved, you will be issued a tax registration certificate which confirms that your business is now registered for corporate tax in UAE. With this certificate, you can go ahead to pay your corporate taxes. This will depend upon business activities and turnover. Consult with a tax professional to calculate your corporate tax accordingly.
Conclusion
At Auditac International, we have an expert team in place with rich experience in assisting businesses with their tax needs. We aim to simplify the entire process of Corporate Tax Registration with precise instructions that will help you navigate the corporate tax registration process smoothly to achieve financial success and avoid any pitfalls during the journey.
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