How to Register for Corporate Tax In the UAE: A Step-By-Step Guide!

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Businesses operating in the UAE often find it tricky to figure out how to register for corporate tax in the UAE. Entities within the Emirates must follow new corporate tax regulations with Federal Decree Law Number 47 of 2022. If you are not sure about registering with the corporate tax office in the UAE, we will help you.

Here’s the step-by-step guide to registering for corporate tax and the obligations you must undertake to register your business for corporate tax within the UAE. Continue to read to handle the corporate tax filing process confidently.

Documents Required for Corporate Tax Registration

The following are the essential documents required for corporate tax registration in the UAE:

  1. Financial Records and Statement

To register your company for corporate tax, you must supply detailed financial records and statements. Secondly, these should be extremely detailed, narrating your company’s income, expenditures, credits, and all else involved in the financial transaction. All of these facts are essential in correctly computing your tax liability.

  1. Documents of Company Legals

You also have to provide legal documentation such as the current Trade Licensee and the MOA /AOA (document principles and operation guidelines of your company).

Annual Financial Audit Report must be provided by entities required to maintain audited books and records. This report is an independent evaluation of your company’s financial condition, which is important to FTA qualification. Such audited records must be kept only in some organisations specified by the minister.

  1. Information About Business Owners

In addition, the FTA requires business owners to submit identifying information. This includes a valid copy of the passport of each owner, partner, or partner. To add to that, they also need to confirm their identity and legal status in the country: their Emirates ID.

In addition, you need to provide contact details for the person responsible, a mobile number, and an email address. You must also give the company’s full address and PO Box so the FTA can easily contact your representatives.

Corporate tax registration in UAE will be easier with proper documentation that is updated and readily available. You must know and anticipate these prerequisites to handle your tax responsibilities effectively.

Steps to Register for Corporate Tax In the UAE

Now, let’s move on to how to register for corporate tax in the UAE. Follow these steps to register your new business or company for corporate tax

Step 1: Login to EmaratTax

The first step is to visit the EmaratTax website, where you need to read and log into your previous account. If you don’t have an EmaratTax account, you must create an account, and you can do that by clicking on the ‘Sign Up’ link on the login page. 

EmaratTax account can also be logged in using the UAE Pass account details. UAE Pass is an identity service provided by the Government of the UAE to access the UAE government’s online services. 

When you log in successfully, you will be redirected to the Taxable Person List on the EmaratTax system. You can see all the taxable persons/companies with whom you are linked with your EmaratTax account on this screen. 

Step 2: Add Taxable Person

Assuming you don’t have any taxable persons registered against your profile, you must add a taxable person in this case. Don’t worry! It’s an easy process. You just need to enter minimum information like the company name, license number, etc. and click the ‘Create’ button to create a new taxpayer. 

A new entry will be shown in the Taxable Person List upon adding the new person as a taxable person. Select the taxable person account you wish to proceed with and click ‘View’ for Taxable Person Account Dashboard. 

Step 3: Taxable Person Dashboard

The Corporate Taxable Person Dashboard comprises all corporate tax-based options, including registration, return filing, payment, etc. Go to the Corporate Tax tab, and the submenu ‘Register’ will take you to the ‘Register’ option. 

Step 4: Look through the Instructions and Guidelines

Regarding Corporate Tax Registration UAE, we provide information and the necessary procedures to be followed on the next screen. This information will allow registered users to understand the process and the UAE corporate tax. Reading through the instructions, tick the box as a statement of comprehension.

Step 5: Start Registration Process

Once you have completed the reading of instructions, you are supposed to click on ‘Start’ to start doing the online registration application form. The form has been divided into sections at the form, making it easy and efficient to fill. 

Step 6: Entity Details

There are two sections, and the first is Entity Details. Choose the correct entity type from the dropdown list per the company, partnership, charity, etc. 

The reason for this is that the basic entity information depends upon the entity type that was selected. The application can be saved as a draft, and the user can return it later only by clicking on ‘Save as Draft’. 

Step 7: Identification Details

The trade license information, such as license number, expiry date, business activity, and owner information, is included in this section (if any). 

Click ‘Add Business Activity’ so that all the other relevant business activities can be linked and bound to the standard format of the trade license. Likewise, to put an owner, simply click add owner where you can set the owner’s details. 

Check if the company has any branches. If so, find the local branch license number. 

Step 8: Contact Details

This section requires the details to file tax, such as the entity’s registered office address. 

Step 9: Authorized Signatory

Click on ‘Authorized Signatory,’ then click on ‘Add Authorized Signatory,’ and put in the name of that authorised person who can handle tax matters at the entity. Power of Attorney is a must document for a Legal person entity. 

Step 10: Review and Submit

Make sure that the information provided in this section complies with the accuracy of the rest of the sections. Give the declaration and tick the box to fill in the application. 

A unique reference number will be sent to candidates after they apply, enabling them to track their status. The corporate tax registration process has the below steps with taxable persons:

  1. To receive a Tax Registration Number (TRN), a corporation must register its business with the Federal Tax Authority. Any company undertaking taxable workouts in the UAE requires a unique identification number known as the TRN.
  2. Apart from obtaining their trade license, corporations must also fill out an online form from the FTA. The registration form must also provide information regarding the corporation, such as name, address, and enterprise activity. Additionally, the FTA requires supporting documents, including trade licenses and articles of incorporation.
  3. After the registration process is completed, the corporation gets a UAE Tax Registration number. This number must be used in every tax record and filing, including corporate tax returns and invoices. The TRN should be kept safe and secure because it is a unique Identification number linked to the UAE Corporation’s financial activities.
  4. Once you have the TRN, corporations must also check certain other tax-related experiences, like keeping your financial records and submitting the necessary taxes within the tax period. Be careful! If the corporation fails to comply with these obligations, the FTA can levy penalties and fines, which can impact the corporation’s financial health.

Don’t you know much about the new tax regulations in Dubai? Xpert Advisory tax consultants can help you with Dubai corporate tax registration. We can also help you comply with the ever-changing global tax standards with our accounting and bookkeeping expertise. 

Common Mistakes When Registering Corporate Tax In UAE

Corporate income tax registration can seem simple, but there are common pitfalls to avoid while filling out a form, which is as follows:

  • Incomplete or Inaccurate Documents: Make certain that all necessary documents are full and contain accurate information. It could include trade licenses, ownership details, and financial statements.
  • Arabic Spelling Mistakes: Double-check the spelling of Arabic characters used if you are not an Arabic speaker when submitting documents to register for corporate tax. 
  • Misclassifying Your Business Activity: Your business activity may determine which tax rate or exemptions are applicable. Get yourself to ensure you do not mark your operations wrongly.

Final Words

To be tax compliant for any business in the UAE, knowing how to register the corporate tax is essential. If you follow the outlined steps carefully and  avoid the common mistakes of no documentation or misclassification of business activities, you can easily obtain your Tax Registration Number (TRN). By being prepared and organised, you can easily manage corporate tax obligations and avoid penalties.

Do you want more information on corporate tax registration? Are you unsure when your corporate tax registration and other tax obligations are due? Contact Xpert Advisory’s certified tax advisors for expert guidance on navigating corporate tax compliance and tax laws in UAE.

FAQs

Is It Necessary to file for Corporate Tax Registration In the UAE?

Yes, corporate tax registration on the EmaratTax portal is compulsory for all taxable entities under the UAE corporate tax guide law.

What’s the Penalty to File Tax After Deadline?

Registration after the deadline can cost you a penalty of up to AED 10,000*.

Are UAE Freezone Companies Required to Pay Corporate Tax?

Yes, UAE Freezone companies are subject to corporate tax. Still, if you meet certain requirements, your company may be eligible for a 0% tax rate on your Qualifying Income. The standard 9% corporate tax rate applies otherwise. 

This blog is intended for informational purposes only. The content is provided “as is” and we make no representations or warranties of any kind regarding its accuracy, completeness, or suitability. Any reliance on the information is at your own risk. We are not liable for any losses or damages arising from the use of this blog.

* – Fees and Costs Mentioned are for Reference Only.

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