Corporate Tax Registration

UAE Corporate Tax: Effective June 1, 2023

As the UAE corporate tax comes into effect on June 1, 2023, it’s essential for businesses to understand the registration process and the associated administrative requirements, such as deregistration, filing tax returns, and payment obligations.

The UAE has already begun early corporate tax registration for specific business categories. These selected companies will receive invitations from the Federal Tax Authority to register through the EmaraTax platform, the digital service used for tax-related activities.

According to the Federal Decree-Law No. 47 of 2022, corporate tax will be introduced at a 9% rate for financial years beginning on or after June 1, 2023. This tax applies to businesses with taxable profits exceeding AED 375,000, while those below this threshold will benefit from a 0% corporate tax rate.

UAE Corporate Tax Registration: User Manual

The Federal Tax Authority has released a user manual for corporate tax registration. To complete the registration application, you’ll need the following details:

You can download the corporate tax registration user manual and complete your registration. All businesses, including free zones, individuals, and companies, must register—even if their taxable income is below the AED 375,000 threshold. However, businesses are not required to take any immediate action unless they receive an “invitation to register” during the January-May period.

There are no penalties for registration if businesses ensure they register before the due date for tax return submission.

If your entity is already registered for VAT, the corporate tax registration process becomes much simpler. Most of your data will already be pre-filled in the form, making the registration process faster and easier. Corporate tax registration is now open on the Federal Tax Authority (FTA) portal.

How and When to Register for Corporate Tax in UAE

All businesses in the UAE must register with the Federal Tax Authority to receive a corporate tax registration number or ID. This applies to corporations subject to either the 0% or 9% corporate tax rates.

The registration process is electronic and must be completed via the Federal Tax Authority website.

Corporate Tax Deregistration and Tax Return Filing

If your business is registered for corporate tax, you can deregister once it is no longer subject to corporate tax. After submitting corporate tax returns and settling all liabilities and penalties, the FTA will deregister your business.

Businesses are required to file a single consolidated tax return for each relevant tax period, rather than multiple returns. The consolidated return must be filed within nine months after the end of the tax period.

FAQ Question ❓

Frequently Asked Questions

What are the deadlines for corporate tax in the UAE?

Under the UAE corporate tax system, taxpayers have up to 21 months from the beginning of their financial year to file their tax returns and make payments. For businesses with a financial year starting on June 1, 2023, the filing deadline is February 28, 2025.

Do I need to register for corporate tax?

Yes, if a company is registered in the UAE, it must register for corporate tax, regardless of whether it falls under the 0% or 9% tax rate.

Can I file corporate tax myself?

Yes, you can file your company’s corporate tax returns on your own. Alternatively, you can appoint an accountant to handle the preparation and submission. After registering electronically for corporate tax, you’ll receive a notification when it’s time to file.

When to Register for Corporate Tax in UAE?

All businesses in the UAE must register with the Federal Tax Authority (FTA) and obtain a corporate tax registration ID or number. The corporate tax registration requirement applies to all businesses, whether they fall under the 9% or 0% corporate tax rate. Registration must be completed electronically through the Federal Tax Authority’s website.