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Guide to Tax Registration Procedures in the UAE for 2024

Tax Registration Dubai is significant because it allows tax-paying entities to comply with the latest changes that were made to the Federal Decree Law No 7/2017 regarding Excise Taxes within the United Arab Emirates through Ministerial Decision No. 108/2023. This blog provides guidelines and requirements that Taxable Persons must follow when completing tax registration. Tax Registration application process. In addition, it explains situations where taxpaying taxpayers may be eligible for exemptions, have rejections, or face cancellations during Tax Registration. Also learn how tax consultants Dubai can help you with your process of tax registration.  


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Demand for Tax Registration: 

The Taxable Person is expected to adhere to specific requirements and be subject to specific guidelines for registration in the following manner: 

  • Applying and Compliance 
  • Quick Response 
  • Effective Date 
  • Financial Guarantee Adjustment 
  • Warehouse Keeper Registration 

The conditions for exemption: The authority can exempt an individual from tax registration if they can prove they are not planning to import or export Excise Goods out of a Designated Zone for use on a regular basis. 

The term “On Regular Basis”: “on regular basis” refers to the importation or taking Excise Goods outside of the designated Zone greater than twice per six months. 

Notification of Changes: Individuals who are exempt from Tax Registration are required to inform the authority immediately within 20 days, if something changes which requires them to be registered for tax. 

Permanence of Exemption: If an individual does not satisfy the requirements of exemption any longer the authority will be able to register them as taxpayers at the time they stopped fulfilling the requirements. 

Tax Payment: If an individual who is exempt from Tax Registration must pay tax on the import of Excise Goods, they need to pay the tax prior to or at the time of importing the item, together the methods that the authority determines. 

Rejection basis: The authority may refuse Tax Registration applications if it determines that the applicant doesn’t wish to undertake the actions they are required to perform or if they do not provide the details and information that they must provide. 

Reasons for request cancellation: If you want to cancel your tax registration, you must apply to cancel taxes within 30 days of the day you cease to be responsible for taxes such as the stockpiling of excise-related goods or producing and imports. But you must be patient for a minimum of six months following your registration date to request cancellation except if the authority accepts a different timeframe. 

How to apply for cancellation: If you want to apply for cancelling your tax number you must make an application for cancellation to the authority with all the information required and supporting documents. The authority will examine your application and determine whether to accept or deny the application within 20 days. The authority must inform you of its decision, whether acceptance or rejection, within 5 business days. 

What is the registration request rejected: The authority could deny your request to revoke your tax registration if there is inability to establish tax obligation and you haven’t completed the six-month period from the date of your registration. 

When to register for tax: You must apply for tax registration before the date the authority proclaims to be the beginning date for the tax. This is when the tax is effective and is applicable to taxpayer’s activities that are tax deductible. 

Consequences for not registering for tax:  If you do not make an application for tax registration prior to the date of commencement on that date, the authority can register you automatically starting on that date. This means that you’ll be tax liable at the time of registration regardless of whether you didn’t apply for registration. 

Dubai tax consultants are the best option for your business if you want perfect results, ebs Chartered Accountants are the top tax consultants if you want to register for tax in Dubai and consider all its obligations. 

 


FAQs 


What is the VAT rate in UAE 2024? 

What is the VAT rate in UAE? FTA announced a standard VAT rate of 5%. However, the FTA categorized a few goods and services under zero-rated supply and exempt supplies where no tax is charged. 

What is the income tax rate in Dubai 2024? 

The UAE Ministry of Finance introduces a tiered taxation policy: Tier 1: 0 percent Tax Rate for profits up to AED375,000. Tier 2: 9 percent Tax Rate for profits exceeding AED375,000. Tier 3: Different Tax Rate for large multinational companies with global revenue over AED3. 

What are the new taxes in Dubai 2024? 

The New Tax Law imposes a 20% tax on the annual taxable income of foreign banks operating in Dubai, except for foreign banks licensed in the Dubai International Financial Centre (DIFC). 

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