Corporate tax registration is essential for businesses operating in the UAE. Failure to comply with the Federal Tax Authority’s regulations and standards accrues hefty fines upon taxable persons. Thus, it is advisable to seek the services of tax consultants in the UAE to prepare for corporate tax registration and filing and to stay compliant with tax standards.
How to Register for Corporate Tax in the UAE?
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.
What are the required documents for UAE tax registration?
To prepare for corporate tax registration, taxable persons need to prepare the relevant documents. Taxable persons need to provide a copy of a valid Trade License, valid Passport copies and Emirates IDs of the license-owning owner/partners, either a Memorandum of Association (MOA) or Power of Attorney (POA), as well as contact details for both the concerned person and the company, including mobile number, email, complete address, and P.O. Box. Additionally, you'll also need to submit an Annual Financial Audit Report. For this, UAE tax consultants assist taxable persons to seamlessly prepare for corporate tax registration, compliant with the prevalent UAE tax law.
Who needs to go through the registration process?
Corporate tax UAE is imposed on the taxable income of businesses. For taxable income up to AED 375,000, the corporate tax rate is 0%. For taxable income above AED 375,000, the corporate tax rate is nine percent (9%). However, the UAE corporate tax exempts distinct qualifying persons.
Is there any specific timeline for the registration process?
According to the UAE Ministry of Finance, corporations in the country have up to 9 months from the conclusion of the applicable tax period to file their tax returns and ensure the registration process.
Choose tax consultants UAE
Corporate tax advisors provide businesses with the knowledge and expertise required to complete the registration process efficiently and accurately. They assist to ensure that all the necessary documents are in order and that the registration process is completed promptly. Moreover, they can also provide guidance on tax planning and compliance measures, which is crucial for businesses to operate smoothly in the UAE.
Ahmad Al Zain
Ahmad is an accomplished legal associate with more than 5 years of experience, he is adept in navigating the complex tax codes at federal, state and local levels. He has an immense aptitude for conducting tax investigations and tax litigation. He is well-versed in offering expert tax advisory and handling tax arbitration procedures in international and local jurisdictions. Further, he has comprehensive expertise in drafting a wide scope of tax documents and negotiating intricate tax disputes with the Federal Tax Authority.