Effortless Corporate Tax Registration UAE for Your Business
You would be surprised to know that, from June 2023, the UAE has introduced a Corporate Tax rate of 9% on business profits. This applies to earnings above AED 375,000. Such a landmark decision encourages transparency and ensures sustainable economic growth in the UAE. As businesses adapt to this new tax environment, Corporate Tax Registration is a vital step to meet Federal Tax Authority (FTA) regulations.
This guide will give you the complete guide for Corporate Tax Registration in the UAE. It will also help you avoid common errors during registration.
What is Corporate Tax in the UAE?
The UAE Corporate Tax is a direct tax based on the net profit gained by companies operating in the country. It is charged to corporations and other business enterprises carrying out trade. The tax takes effect for fiscal years starting on or after June 1, 2023. It is called corporate income tax or business profits tax. It mandates businesses pay a percentage of their profits as tax. This framework promotes economic transparency and aligns the UAE with global tax systems.
Who Must Register for UAE Corporate Tax?
Businesses in the UAE must be registered for corporate tax if they satisfy specified conditions. Here’s who needs to register
Mainland Companies
All kind of business operating in the mainland holding the trade license.
Free Zone Entities
Businesses registered and operating from the free zones.
Foreign Businesses
Foreign companies with a branch or permanent establishment in the UAE.
Partnerships and Joint Ventures
All partnership ventures engage in commercial activities.
Natural person
Business or Business Activities conducted by a natural person in the UAE are subject to Corporate Tax if the total Turnover exceeds AED 1 million within a Gregorian calendar year.
Key Documents Required for Corporate Tax Registration
To successfully register for corporate tax in the UAE, businesses must prepare and submit some of the following essential documents. The list of mandatory documents follows
Trade License
Original trade license issued by the relevant authority for the business activity.
Memorandum of Association (MOA)
Document of the legal structure, ownership, and operations of the business.
Passport copy of Owners/Partners/Shareholders
Copy of passports of all individuals who own the business license.
Identification of Owners/Authorized Representatives
Copy of Emirates ID & Passport of the license holders and authorized representatives.
Lease Agreement
Showing a physical office or business address in the UAE.
Power of Attorney
If a representative or tax agent is making the application on behalf of the business.
Contact Information
Phone number and Email contact details of the company.
Ensure that all documents submitted are latest, clearly scanned, and meet the FTA’s requirements. Submissions are completed, and accurate documentation helps avoid delays in the registration process.
Step-By-Step Guide to Corporate Tax Registration
Corporate Tax Registration is a vital procedure followed by businesses in the UAE. The following step-by-step helps process it in no time.
Step 1: Access the Emara Tax Portal
Step one is to go to the Federal Tax Authority – Emara tax portal, where first-time users register by creating an account on this portal using a valid e-mail address and phone number. The already registered users log in to their portals using their login credentials. Make sure your login details are secure, as this account will be used for tax-related processes.
Step 2: Create a Taxable Person Profile
Once logged in, you need to create a Taxable Person Profile. This profile represents your business entity in the tax system. Enter accurate details about your business, such as trade name.
Step 3: Fill out the Corporate Tax Registration Form
After setting up the profile, you can access the Corporate Tax Registration form. Provide critical details such as:
- The legal structure of your business.
- Information about the owners, shareholders, or partners.
- Company address and contact information of the company.
Step 4: Upload Supporting Documents
Add the supporting documents required for your application. These include your trade license, passport copies of owners or shareholders, Emirates ID, and financial statements. Include other documents like lease agreement if applicable. Use clear scanned copies to prevent delays in the processing process.
Step 5: Submit the Application
Once everything is complete, carefully review the form and documents. Confirm that all details are correct and match your business records. Apply through the Emara tax portal. Once the application has successfully been submitted, you will receive an email confirmation.
Step 6: Track Registration Status
Following this, you can check your application status on the Emara Tax portal. It shows that the application is under review, additional information required or approved. Respond to any FTA requests promptly to avoid delays.
Common Mistakes to Avoid During Registration
Here are some common mistakes in corporate tax registration for businesses in the UAE that can cause delays or rejections of their process
Incomplete Information
Omitting key details or leaving sections of the registration form incomplete can cause your application to be rejected. Always review the form to ensure all fields are filled.
Incorrect Documents Submission
Uploading outdated, or unclear documents, such as expired trade licenses or illegible scans, can delay approval. Make sure all documents are current, clear, and accurate.
Inaccurate Business Details
Mistakes in the trade name, license number, business activity, company address and contact information can cause discrepancies with the Federal Tax Authority (FTA). Verify that all business information matches your official records.
Never Ignore Deadlines
Failure to register on time might subject to pay penalties and compliance issues. Make sure you complete your registration before the deadline.
Not Responding to FTA Requests
Respond promptly to any questions or clarifications the FTA may require for additional information. Delays can further extend the approval timeline.
Lack of Professional Assistance
Registration could be managed with professional support to avoid errors. The best thing is to hire a Tax Consultant in Dubai, such as Premier Auditing and Accounting, to ensure that they prevent costly mistakes and maintain the smooth flow of compliance.
Staying Current With UAE Corporate Tax Laws
Corporate Tax Registration in the UAE is a significant step forward for businesses to stay as per the regulations of the Federal Tax Authority. The registration process, documentation requirements, and common mistakes can be identified and avoided to make the experience smooth. This new tax structure aligns the UAE with global standards while ensuring transparency and sustainable economic growth.
It may also make things much more manageable and provide peace of mind to business owners if they seek professional help through a professional Tax Consulting Firm in Dubai, like Premier Auditing and Accounting, one of the Best Tax Consultants in Dubai. Get your registration today and secure compliance with ease.