The process of Corporate Tax registration in the UAE has begun since the direct tax took effect on June 1^st 2023. Corporate tax advisers in Dubai advise businesses that come within the scope of corporate tax to register as soon as possible to avoid any last-minute surprises. However, they need to assess the eligibility for UAE corporate tax registration and other relevant requirements.

To help taxable persons with the UAE corporate tax registration requirements, the Federal Tax Authority (FTA) has released a Guide (CTGRJP1). The guide is intended to be used by juridical persons (not natural persons) and it provides them with clear-cut instructions on key issues such as Corporate Tax Registration rules; How a Person can determine whether they need to register for Corporate Tax; and the Corporate Tax Deregistration process.

Read the following blog to get an accurate interpretation of the UAE corporate tax registration guide for juridical persons.

Who can register for Corporate Tax in UAE?

As per the UAE corporate tax law, all taxable persons are required to register. The guide provides the following information regarding the types of taxable persons who must register for the UAE corporate tax:

• Resident juridical person
• Non-resident juridical person with a Permanent Establishment in the UAE
• Non-resident juridical person with a nexus in the UAE
• A natural person subject to certain conditions

Are Exempt Persons required to register corporate tax?

Qualifying Public Benefit Entities, Qualifying Investment Funds, Pension and Social Security Funds and Juridical Persons wholly Owned and Controlled by certain other Exempt Persons are required to register for corporate tax even though they are exempt persons. Based on relevant provisions of the UAE corporate tax law, the guide sheds light on the registration requirements for the following types of exempt persons.

• Government Entity: not required to register unless they conduct a Business or Business Activity under a License issued by a Licensing Authority
• Government Controlled Entity: need not register unless they conduct a Business or Business Activity which is not their Mandated Activity
• Extractive Business: no need to register unless they conduct a Business which is within the scope of UAE Corporate Tax
• Non-Extractive Natural Resource Business: not required to register unless they conduct a Business which is within the scope of Corporate Tax

Corporate tax registration for VAT & Excise Tax Registrants

People who are already registered for VAT and Excise Tax are required to register if they fall within the scope of corporate tax in the UAE. Taxable Persons who are not subject to VAT or Excise Tax but are within the scope of the Corporate Tax will also be required to register for corporate tax. It means the eligibility for corporate tax registration is not determined based on a person’s VAT or Excise Tax registration status.

How to register for corporate tax in the UAE?

A person wishing to register for UAE Corporate Tax is required to submit an application along with the supporting documents to the FTA. The FTA will review every application it receives and issue either a rejection or an approval decision. If approved, the FTA will issue a Tax Registration Number (TRN). If rejected, the person can re-apply after addressing and resolving the reasons for rejecting the UAE corporate tax registration application.

If the FTA feels the documentation is inadequate, it may ask the person to submit additional documents or information. The application will be approved only after the FTA reviews the additional documents/information. Corporate tax consultants in Dubai can help you with the registration process.

Documents  for Corporate Tax Registration UAE

The FTA Guide lists a list of key documents taxable persons should submit while applying for corporate tax registration in the UAE. Companies providing corporate tax registration services in Dubai can assist you in preparing the documents. The following are the essential corporate tax registration documents:

• Trade License / Business License details
• Passport of the immediate owner who directly owns at least 25% of the shares of the juridical or Exempt Person (Mandatory if the owner is an individual)
• Emirates ID of the immediate owner who directly owns at least 25% of the shares of the juridical person (Mandatory if the owner is an individual and a UAE resident)
• Passport of authorized signatory
• Emirates ID of authorized signatory
• Proof of authorization for the authorized signatory

UAE Tax Agents for Corporate Tax Registration

Tax agents in the UAE can help taxable persons register for corporate tax with the FTA. The same agents who assist the taxpayers in meeting their VAT and Excise Tax obligations can help with corporate tax registration. However, such agents should register with the FTA for corporate tax purposes.

Corporate Tax Deregistration in the UAE

Juridical persons who are no longer subject to Corporate Tax need to deregister. The reasons for deregistration commonly occur when a Business or Business Activity ceases, but could also occur due to dissolution liquidation or other circumstances. In order to deregister from Corporate Tax, a juridical person must make an application to the FTA. Once approved, the date of deregistration will be the date the Business or Business Activity ceased, unless the FTA determines that another date should be used.

In order to be deregistered, a Taxable Person must meet all of their tax compliance obligations such as filing all of the relevant Tax Returns and paying all Corporate Tax liabilities and administrative penalties due. A juridical person is required to file a Tax Deregistration application within 3 months of the date the entity ceases to exist, cessation of the Business, dissolution, liquidation or otherwise.

Hire the Best Corporate Tax Advisers in Dubai, UAE

Registering for corporate tax in the UAE is mandatory for all taxable persons as listed in the corporate tax law. The process can be complex but businesses can simplify it by hiring the best corporate tax consultants in Dubai such as Tax Gian. A brand of Jitendra Tax Consultants (JTC), Tax Gian’s tax experts carved a niche for being the top providers of reliable corporate tax services in Dubai, UAE. Consult us for any corporate tax-related matter that is vital to ensure compliance.