Corporate Tax in UAE is a direct tax imposed on the net income or profit of corporations and businesses introduced by the UAE Ministry of Finance. This tax reform is designed to support medium and small enterprises by instituting an initial statutory tax rate of 9% on corporate profits exceeding AED 375,000. It is obligatory to comply with the corporate tax regulations for all eligible Taxable Persons in the UAE. This involves corporate tax registration, filing annual tax returns, and maintaining accurate accounting records.
Moreover, the introduction of corporate tax in UAE is to meet the international standards of tax. Providing the best corporate tax services, ebs assures a timely corporate tax registration in UAE to comply with the corporate tax regime. In this blog, we will discuss how you can register for corporate tax.
Registration For Corporate Tax In UAE
As per the FTA’s Federal Degree Law 47, the corporate tax regime demands that every taxable person, which includes a Free Zone Person requires corporate tax registration and get a Registration Number. The Federal Tax Authority also requested that even the Exempted Persons must register for Corporate Tax.
Taxable Persons must file Corporate Tax returns for a Tax Period within 9 months from the end of a particular period. This deadline is normally applied for the payment of all the Corporate Taxes due in terms of the Tax Period the return is filed.
In the cases excluded as declared by the Minister, a Taxable Person is required to register for the Corporate Tax with the Federal Tax Authority in a specific in a specific format, within a timeline declared by the authority.
The Authority needs the Taxable Person or the Independent Partnership, to register for Corporate Tax and get the Tax Registration Number. The Tax Authority should have a unique judgment for Corporate Tax Registration from the day an individual becomes a Taxable Person. Once the registration of corporate tax is done, the tax persons have to pay a standard rate of Corporate Tax of 9% on taxable income above AED 375,000, while taxable income up to AED 375,000 is charged 0%.
How to register for the UAE corporate tax?
The Federal Tax Authority has announced pre-registration of corporate tax in the EmaraTax platform. It is an online portal for taxpayers to handle all the Tax registrations, deregistration, returns, refunds, and payments in one platform. One can also make VAT Payments using the EmaraTax user-friendly portal.
You can create an account or migrate your FTA Account to EmaraTax easily with the help of experts. You may need to submit all the documents required for the corporate tax UAE and register for corporate tax easily.
The Procedure for Corporate Tax Registration in the UAE
- Determine tax liability
- Fix the entity type
- Plan the Business Activity
- Prepare required document
- Register for Corporate Tax
Need for Corporate Tax Registration in UAE
The UAE Ministry of Finance has come up with a tax structure and laws that could benefit the companies that pay corporate tax. If you are a business who are subjected to corporate tax, you can have the following advantages.
- Identify malicious tax practices
- Staying compliant with the tax law and following up on changes
- Following world-class tax standards
Corporate Tax registration is also important to minimize the after-tax revenue of the companies, thus return to shareholders. This not only impacts the individuals with direct shareholdings but also the indirect shareholders via investment funds or private pensions.
Corporate tax payments provide more advantages to business owners rather than paying additional income tax individually.
Who is exempt from UAE corporate tax?
The Federal Tax Authority requested that the Exempted Persons should register for Corporate Tax. Also, the exempted business has to pay 0% of corporate tax.
There are categories that are exempted from the UAE CT. Let us look at some of them:
The employee’s pay will not be affected by the UAE corporate tax. However, if the individual gets income from activities conducted under a freelancing license. Then he or she will be charged with the company tax.
Share or any similar assets resulted in dividends, capital gains, or any income earned by personal potential.
Investments in real estate are legal in the UAE until the investor has no business license.
Corporate Tax will not charged on the foreign investor’s income from gains, dividends, royalties, and similar investment returns unless got through business activity.
Potential intra-group reorganizations or transactions will not be affected by the corporate tax.
Who should register for corporate tax?
Every Taxable person, including Free Zone person, is required to register for Corporate Tax and get a Registration Number.
As per the UAE Law for corporate tax, there are a few conditions for tax registration, which are as follows:
- Registration at the choice of FTA
- Mandatory Registration
If your business is taxable under the corporate tax policy, you should apply for corporate tax registration in UAE. Once registered you must get a Registration Number with the specific period. Tax consultants at ebs assist businesses with the registration process for Corporate Tax. The Federal Tax Authority requests certain individuals like autonomous partnerships or exempt persons, etc to register under the Corporate tax policy and get the Tax registration number.
Conclusion
ebs has the most experienced and qualified tax consultants with the best expertise in Corporate Tax registration. ebs has tax advisors who provide the best quality services in the registration process for corporate tax. ebs assists you with the updates on corporate tax registration and filing corporate tax returns.
Don’t let the complexities of the UAE’s corporate tax regime anchor you down. With ebs as your trusted guide, you can navigate the new tax landscape with confidence, focusing on growth and steering your business towards a prosperous future. Contact us today for a free consultation and discover how we can help your financial voyage smooth sailing. We also provide services such as accounting and bookkeeping services, Auditing, Due Diligence audit services, and many more. So, you should get in touch with our experts to discuss our services and contact us today.
FAQ’s
Do I need to register for corporate tax in UAE?
All taxable persons are needed to register for UAE Corporate Tax and get a Corporate Tax Registration Number according to the UAE Corporate tax law. As per the FTA’s Federal Degree Law 47, the corporate tax regime demands that every taxable person, which includes a Free Zone Person requires corporate tax registration and get a Registration Number. The Federal Tax Authority also requested that even the Exempted Persons must register for Corporate Tax.
What is the deadline for corporate tax registration in UAE 2023?
Businesses with a financial year starting on June 1, 2023, and ending on 31, 2024, have time until February 28, 2025, to file their corporate tax returns and make their payments.
How can I register my tax number in UAE?
You can access your EmaraTax account using the UAE Pass or your registered email. After logging in, you will see the user dashboard for the EmaraTax online show-up. Select the Excise the excise, VAT, or corporate tax registration option from your dashboard. Ensure that you are eligible and have all the necessary proof of eligibility. After reading the directions, click “Proceed” to move ahead. Complete the application form and submit it.