The UAE has recently adopted the Corporate tax to be effective from the financial year starting from June 2023. All business entities in UAE are currently subjected to the corporate tax which stands at 9% on the profits made. In this article, the process of how to register corporate tax in UAE through the EmaratTax online portal is explained in detail.
Step-by-step guide to UAE corporate tax registration
Step 1: Login to EmaratTax
The first process is to go to the EmaratTax website where you have to log in using your previous account details. If you do not posses an EmaratTax account then it will be required to create a new account and you can do this by clicking on the ‘Sign Up’ link on the log in page.
You can also even log in to the EmaratTax account by using the UAE Pass account details. UAE Pass is an identity service offered to the citizens of the UAE to facilitate their access to the online government services.
After logging in successfully you will be redirected to the Taxable Person List page on the EmaratTax system. This screen allows you to view all the taxable persons/companies associated with your EmaratTax account.
Step 2: Add Taxable Person
In case where there are no taxable persons associated with your profile, a new taxable person will need to be created. Enter the minimum required information like the name of the company, license number, etc., and click on the ‘Create’ button to create a new taxable person.
Upon its addition as a taxable person, the new entry will be shown in the Taxable Person List. Choose the taxable person account that you would like to proceed with and click on ‘View’ to open the Taxable Person Account Dashboard.
Step 3: Access Taxable Person Dashboard
The Taxable Person Dashboard shows all the corporate tax related options including registration, return filing, payment, etc. To register, go to the ‘Register’ option under the Corporate Tax tab.
Step 4: Read Instructions and Guidelines
The next screen provides crucial information and the necessary procedures to be followed, in regard to Corporate Tax Registration UAE. It will help the intended users to understand the registration process and the UAE corporate tax requirements. After reading through the instructions, make sure to tick the box as a sign of comprehension.
Step 5: Start Registration Process
On completing the reading of the instructions, one is supposed to click on the ‘Start’ button to initiate the online registration application form. The form is broken down into sections that make the filling of the form easier and much efficient.
Step 6: Entity Details
The first of these sections is Entity Details. Choose the correct entity type such as the company, the partnership, the charity and so on as provided in the dropdown list.
This is because the basic entity information depends on the entity type that has been chosen. The application can be saved as the draft and the user can come back at a later date simply by clicking on ‘Save as Draft’.
Step 7: Identification Details
This section may include trade license information such as, license number and expiry date, business activities, owners information and etc (if any).
To link all the other relevant business activities with the trade license to conform to the standard format, click ‘Add Business Activity’. In the same way, to add an owner click on ‘Add Owner’ where you can input the owner’s information.
Also, confirm if the company has any branches and if so, indicate the local branch license number.
Step 8: Contact Details
Enter details such as the registered office address of the entity in this section.
Step 9: Authorized Signatory
Go to ‘Authorized Signatory,’ click ‘Add Authorized Signatory,’ and add the name of the authorized person who is competent for tax issues at the entity. Legal person entity may require Power of Attorney document.
Step 10: Review and Submit
In this section ensure that all information provided complies with rest of the sections in terms of accuracy. Provide the declaration and tick the box in order to complete the application.
Candidates will receive a unique reference number to track status post submission of the application.
Taxable persons are compelled to register for corporate tax UAE, the registration process has the below steps.
- A corporation must register its business license with the Federal Tax Authority to receive a Tax Registration Number (TRN). The TRN is a unique identification number that is essential for any company executing taxable workouts in the UAE.
- In addition to registering their trade license, corporations must also complete an online registration form provided by the FTA. The registration form requires specific data about the corporation, such as its legal name, address, and the nature of the enterprise exercises. The FTA also requires supporting documents, which include the trade license and articles of incorporation.
- Once the registration process is completed, the corporation will be issued a Tax Registration Number. This number must be taken up in all tax-related records and filings, such as tax returns and invoices. It is crucial to keep the TRN safe and secure, as it is a unique identification number that is linked to the corporation's financial activities in the UAE.
- After obtaining the TRN, corporations must also comply with various tax-related obligations, including maintaining accurate financial records, submitting timely tax returns, and paying all applicable taxes. Failure to comply with these obligations can result in penalties and fines from the FTA, which can significantly impact the corporation's financial health.
Read more: How can a Tax Consultant Help Your Corporate Tax Preparation in UAE?
Post Submission Process
After the submission, the application will be considered by the Federal Tax Authority (FTA) and the applicant will move to the section of approval/rejection or require additional documents.
For more information about the application status, you can always log in to the dashboard. If there is anything that you need to further clear with FTA, then you will be informed or rather notified through the email.
Having discussed the corporate tax compliance approval process, your entity is registered for corporate tax compliance in UAE.
Table: Key benefits of Corporate Tax Registration in UAE:
| Benefit | Description |
|---|---|
| Corporate Tax Compliance UAE | Registering ensures the company is compliant with the new corporate tax regulations introduced in UAE. |
| Access to the latest updates | Registered companies can access any new circulars, clarifications or changes to tax rates directly from the tax authority. |
| Online tax services | Features like online filing of tax returns and making online tax payments are available for registered entities. |
| Query resolution | Registered taxpayers can directly contact the tax authority to clarify any doubts or queries related to corporate tax compliance. |
| Avoid penalties | Non-registration may attract financial penalties as per the tax laws. Timely registration helps avoid such penalties. |
| Access to tax rulings | Advanced tax rulings on taxation of special transactions can be obtained from the authority for compliance assurance. |
Read more: Key Factors to consider when selecting a corporate tax consultant in Dubai
FAQs
Q1. What is the corporate tax rate in UAE?
A1. UAE, which had previously adopted a flat tax rate of 0%, started implementing a new corporate tax rate of 9% on the taxable profit from June 2023.
Q2. Is corporate tax registration mandatory?
A2. Yes it is true that corporate tax registration on EmaratTax portal is compulsory for all taxable entities in UAE as per UAE tax registration guide.
Q3. What are the key documents required?
A3. Key documents required in case of applicant is a Natural person are:
- Trade license, where applicable
- Emirates ID / Passport of the applicant
In case of application is a Legal Person:
- Trade license
- Emirates ID / Passport of authorized signatory
- Proof of authorization for the authorized signatory.
Conclusion
In conclusion, the EmaratTax is a convenient online tool that helps to pass through the process of UAE corporate tax registration step by step. To ensure Corporate tax compliance UAE, it is recommended to seek guidance of expert corporate tax consultants in UAE so as to meet accurately with the UAE corporate tax requirements.
