Navigating the Maze of Corporate Tax Registration in the UAE: A Simple Guide for Business Owners

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Navigating the Maze of Corporate Tax Registration in the UAE: A Simple Guide for Business Owners

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by Aswani

FTA implemented corporate tax registration through EmaraTax on January 22, 2023, under the federal degree decree legislation no 47 of 2022 on taxation of corporations and businesses CT law. Under the new law, all enterprises operating within the nation are required to register for corporation tax.

  • The FTA requires all taxable persons, whether legal or natural, to register for corporate tax and get a tax registration number. Experts at Buchprufer can assist you with corporate tax registration in UAE.
  • It includes local companies and foreign companies with a presence in the UAE. The registration process is under and managed by the Federal Tax Authority (FTA), and businesses will be required to submit all relevant documentation and information to the FTA.

The Corporate Tax and its objectives

  • The Corporate Tax aim for achieving the development goals of the UAE for accelerating transformation.
  • The assurance of a competitive Corporate Tax framework adhering to international norms, along with the UAE’s wide network of double tax treaties, will strengthen the UAE’s position as a premier business and investment location.
  • The new law is part of ongoing efforts by the UAE government to diversify the economy and increase revenue sources.
  • It is expected that the implementation of corporate tax will generate significant revenue for the government, which can then be reinvested in public services and infrastructure.

Non-compliance and Fines

  • Businesses operating in the UAE should begin preparing now for the new registration requirements. It may include preparing and reviewing financial records, ensuring compliance with tax laws and regulations, and seeking professional assistance if necessary. Experts at Buchprufer can assist you with corporate tax registration in UAE.
  • Failure to comply with the new law could result in penalties and fines. Therefore, businesses need to take the necessary steps to ensure timely and accurate registration.

Registration timeline for businesses with the financial year of January 1st to December 31st

Steps to follow for Corporate Tax Registration in the UAE

  • Log in to the EmaraTax portal by going to eservices.tax.gov.ae using your registered email address and password. If you are new to this and don’t already have an account, create one by clicking the ‘sign up button’. You must reset your password if you have an FTA account but have not migrated. You may also use your UAE pass for accessing the EmaraTax portal.
  • Now, a list of taxable individuals is shown, and if it is empty, you will need to generate a new one. To do so, provide the profile name in English and Arabic, your preferred language, and your communication channel, and then click ‘create’.
  • Select the taxable individual from the list and click ‘view’ to view the dashboard.
  • On the taxable person dashboard, click ‘register’ on the corporate tax icon.
  • Read the guidelines and instructions, confirm by ticking the box, and then click ‘start’ to begin the corporate tax registration application.
  • Submit information about the entity type, subtype, and date of incorporation in the entity details section. If you are VAT registered, some get filled in automatically. After filling out all essential fields, click ‘next step’ to go on to the ‘identification details’ section.
  • Submit information about the license, business operations, ownership, and local branch details in the ‘identification details’ section. After filling out all essential information, click ‘next step’ to go to the ‘contact’ details section.
  • Enter the business’s registered address in the ‘contact’ details section. If the company has several addresses, include information about the location where a majority of the day-to-day operations are held. To proceed to the ‘authorized signatory’ area, click ‘next step’ after filling out all essential data.
  • Enter the authorized signatory’s information in the ‘approved signatory’ section and upload the relevant documents, such as an Emirates ID passport copy and evidence of authorization. If required, you can add more than one authorized signatory. After filling out all essential fields, click ‘next step’ to move on to the ‘review and declaration’ section.
  • In the ‘review and declaration’ area, carefully verify all of the information submitted on the application, tick the box to declare that the details are correct, and then click ‘submit’ to finish the corporate tax registration application process.

Following submission, the FTA may accept, deny, or return the application for more information and notify the applicant accordingly.

Bottom line

  • In conclusion, registering for corporate tax in the UAE is mandatory for all eligible businesses. By following the steps outlined in this guide, you can ensure compliance and avoid any penalties for non-compliance.
  • All legal businesses, including those that operate as part of a group, must register for corporate tax. Before registering with the authorities, we advise entities with a common owner to determine which entity should be a part of “tax groups.” Single entities may register themselves, however.
  • One should be aware that the registration deadline also applies to the initial tax return filing date. Therefore, there is enough time for registration.

Buchprufer to Assist

Buchprufer assists middle-market organizations across UAE with finance and account outsourcing services. We have the people, processes, and technology to transform your finance department and company. Our experts are knowledgeable about corporate tax in UAE and its procedures. As the leading finance and accounting company in UAE, we offer comprehensive accounting and finance solutions.

Contact us right away to schedule a consultation on corporate tax and its registration procedures.