This corporate tax registration guide will help you understand the legal requirements of the Federal Tax Authority and how to get your tax registration number. Corporate tax is a type of direct tax imposed on companies’ net earnings or profits. It is also called corporate income tax.
The corporate tax authority aims to ensure that businesses meet international tax standards and avoid any harmful tax practices in the country. Whether a free zone or a mainland entity in the UAE, you must register for corporate tax regardless of your annual taxable income. You can register for tax through the government’s EmaraTax portal by providing trade license information, business activities and other required documents.
How Do I Register for Corporation Tax?
This guide will help you understand the Federal Tax Authority portal and submit your corporate tax registration application. According to Federal Decree-Law no.47 of 2022 (Taxation of Corporations and Businesses), you must be eligible to voluntarily register for corporate tax. The applicant can be an individual or a legal person, such as a Public Joint Stock Company, a government entity, or an incorporated person.
Corporate Tax Registration Guide – Step-by-Step
Here’s how you can do corporate tax registration in UAE,
Log in to the EmaraTax Portal – Corporate Tax Registration
Log in to your EmaraTax account using your UAE pass or credentials. If you don’t have an account, you can sign up for a new one by clicking on “sign up.”
Adding Taxable Persons – Corporate Tax Registration
After logging in, you will see the list of Taxable Persons linked to your EmaraTax user profile. You must add a new Taxable Person to proceed if there are no linked Taxable Persons.
Selecting Corporate Tax Registration – Corporate Tax Registration
On the Taxable Person dashboard, select “register” on the corporate tax tile to start your corporate tax registration application.
Check Registration Guidelines
Read carefully through the guidelines and instructions page to understand the UAE corporate registration requirements. Click on the agreement box and then proceed.
Provide Identification & Entity details
Add your name, trade license, and company trade name. Additionally, choose the appropriate type of entity and registration number. The input fields can be different according to the type of entity you select.
Add your business activities
Click “Add Business Activities” and add your business activities under the trade license.
Add Owners
Click “Add Owners” to add all the shareholders with 25% or more ownership in the registered company. Provide the necessary owner information and click on “Add.”
Enter Branch Details
Select “yes” and add the branch details if you have different branches. Include each branch’s owner list, trade license, and associated activities.
Add Contact Details
After completing the required details, select “next stop” and proceed to the “contact details” section. Provide your business’s registered address.
Add Authorized Signatory
Provide details of the authorized signatory and click “Add”. In the case of a legal person, evidence of authorization may include power of attorney or a Memorandum of Association.
Review your application
After completing all required fields, click “Next Stop” to proceed to the “Review and Declaration” section. Here, you will see the information you have added to the application, which you can review and confirm compliance by clicking on the declaration box.
Submitting Application
Click on “Submit” to submit your corporate tax registration application.
The Next Step After Registration – Corporate Tax Registration Guide
- After you submit your application, the Federal Tax Authority reviews it, and you’ll receive a Reference Number for it. You can use this Reference Number for future communication with the FTA.
- After the application is submitted, the FTA can approve, reject, or ask the applicant to resubmit with additional information.
- If the FTA requires further information, the customer will be notified through email.
- Your application will be approved, and your dashboard will be updated accordingly.
Channels and Working Hours EmaraTax Portal – Corporate Tax Registration Guide
The application process can be done through the EmaraTax portal 24 hours a day, 7 days a week.
Service Fee
The service is free of charge.
Estimated Time to Submit Application
About 30 minutes.
Estimated Time for Application Review by the FTA
Once the FTA receives your application, the review takes about 20 business days. However, if the FTA requires additional information, you must resubmit it, which will take another 20 business days. Your application will be rejected if you do not resubmit it with the necessary information within 60 days.
Documents Required for Corporate Tax Registration
The requirements for documents can differ depending on whether the applicant is legal or natural.
Legal Persons (Corporations or Entities)
(corporations or entities)Legal persons should submit the following documents,
- A valid business license
- A valid Emirates ID/passport of the authorized signatory
- Proof of authorization with power of attorney
Natural Persons (Individuals)
Natural persons should submit the following documents,
- Valid business license
- Valid Emirates ID/passport
Who Should Register for Corporate Tax?
You must register for corporate tax if,
- You are a mainland company with a valid UAE trade license. No matter your revenue, you must register for corporate tax.
- You are running a company in a free zone. While free zone companies get tax amenities, they must also register with the Federal Tax Authority to ensure compliance with the tax law.
Corporate Tax Registration Deadline UAE
The Federal Tax Authority has urged Resident Judicial Persons with licenses issued in October and November (regardless of the year of issuance) to submit their application for Corporate Tax Registration before 30 November 2024.
Registration of a Foreign Company under CT Law of UAE
The registration process for foreign companies on the EmaraTax portal has not been enabled yet. Therefore, foreign companies’ branches can not register for CT through this portal. The FTA will soon provide information regarding the process of CT registration of foreign companies through the EmaraTax portal.
Mistakes to Avoid During Corporate Tax Registration
Beware of the following mistakes during the CT registration process through EmaraTax Portal,
- Incomplete Documents. According to the documents, provide the correct information in the application. This step will help you avoid rejection or resubmission.
- Invalid Documents. Before submitting your application, make sure all legal documents, such as trade licenses, are up to date and not expired.
- Wrong Information. During the application process, you are required to provide the company’s “date of incorporation.” If you do not provide the right date, the FTA may reject your application.
- Delay in Registration. Make sure to submit your application before the due date, as failing to register for corporate tax can result in a fine of up to AED 10,000.
Responsibilities post-Corporate Tax Registration.
After your successful CT application registration, you must fulfil other obligations.
- Regular filing of Tax Returns. After the tax registration, companies must file tax returns online within 9 months from the tax period date.
- Keeping Accurate Records of Finances. Businesses must keep accurate financial records for the tax filing process and audits.
- Registration Application. If a company is ending its operations, it must file a tax return and submit its application of deregistration.
Endnotes
To summarize, this corporate tax registration guide includes all the necessary information regarding tax registration, its criteria, documents required by the FTA, and how to use the EmaraTax portal. Corporate Tax Registration is necessary for all businesses operating in the UAE; therefore, every business needs to comply with the FTA guidelines to run its business smoothly under UAE tax law.
Al-Riyady is here to provide expert tax consultation and help you understand the complete corporate tax registration process. Our experienced team can help you with the FTA regulations and how you can submit a full corporate tax application. Our team can also help you with business plan & feasibility studies, liquidation, accounting, auditing, and more.
