If you are wondering how do I register for corporate tax in the UAE in Emaratax? You are in the right place. This complete guide will help you understand the tax registration process, legal requirements, required documents and mistakes to avoid. As per the UAE law, businesses established in mainland and free zones must register for corporate tax, irrespective of their taxable income. There is a 0% tax if a company earns AED 375,000 and 9% if their income exceeds the threshold.
Businesses can register for corporate tax through the EmaraTax portal by providing details of trade licenses, business activities and other documents. After the registration process, a Tax Registration Number (TRN) is issued to the companies. A tax-registered company must fulfil legal obligations like filing tax returns within nine months of their tax period and keeping transparent financial records of the company. Let us look at the complete EmaraTax Corporate Tax Registration process in UAE.
Registration Process of Corporate Tax in the UAE in EmaraTax
The applicants can apply for corporate tax registration by following the given steps,
Login to EmaraTax Portal – Register for Corporate Tax in UAE
Login to the EmaraTax portal by providing your user information or UAE pass. If you are a new user, create an account by signing up.
Add Taxable Person – Register for Corporate Tax in UAE
After the EmaraTax login, add a new taxable person from the list and continue.
Corporate Tax Registration – Register for Corporate Tax in UAE
In the corporate tax registration section, choose “Register” to start your corporate tax registration application.
Registration Guidelines – Register for Corporate Tax in UAE
Review the given registration guidelines to understand the requirements related to corporate tax registration. After reviewing, mark the agreement box and click on “Start” to initiate the registration process of your corporate tax application.
Entity Details Section – Register for Corporate Tax in UAE
Select your business’s appropriate “Entity Type” and “Entity Subtype” from the drop-down list. The sections may differ according to the entity type you have selected. Provide your company’s trade license number, registration number, and legal structure.
Identification Details – Register for Corporate Tax in UAE
Add trade name, legal name in Arabic and English, license number, and upload supporting documents.
Business Activities – Register for Corporate Tax in UAE
Click “Add Business Activities” and enter business activities related to your business. After completing all required fields, click “Add”.
Add Owners (If Applicable)
If your company has owners with 25% ownership, provide their ownership details.
Branch Information (If Applicable)
If your company has multiple branches, select “Yes” and add branch details. If you do not have any branches in the UAE, select “No.”
Provide Contact Information
The next step in the EmaraTax registration process is entering the company address and contact details. Make sure to provide the right contact number and email address.
Authorized Signatory
Click “Add Authorized Signatory” to add the Emirates ID or passport details of the authorized signatory.
Review and Declaration
This section will show all the information you have provided in the application. You are required to review the information and submit your application. Click on “Submit” to submit your EmaraTax corporate tax registration application.
Post Application Submission. How do I Register for Corporate Tax in the UAE in EmaraTax?
After your EmaraTax corporate tax registration application is submitted, a reference number is generated for it. This reference number is called a Tax Registration Number (TRN), and it is necessary for future communication with the Federal Tax Authority (FTA) in the United Arab Emirates.
What’s Next?
- After you submit the EmaraTax corporate tax registration application, the FTA will either approve it or reject it and notify the applicant to provide additional information.
- If the FTA requires the applicant to provide additional information to verify your application, you will be notified through email to give the details.
- You will be notified if the FTA approves or rejects your application.
- The application status will be updated in your dashboard, and you can easily check it for any updates.
Corporate Tax Responsibilities
After successful registration, businesses must fulfil other corporate tax responsibilities such as,
Filing Tax Returns
Businesses must file their corporate tax returns within nine months after the end of their tax period.
Keeping Accurate Financial Records
Businesses must keep accurate and detailed tax filing and audit records.
Deregistration Process
If a company is closing down and stopping operations, it needs to file a tax return and submit a deregistration application.
Documents Required for Corporate Tax Registration
The required documents for corporate tax registration depend on whether the applicant is a legal or natural person.
For Legal Persons (Corporations or Entities)
- A valid and up-to-date trade license is required.
- They must provide an Emirates ID or passport of the authorized signatory.
- They must also provide proof of authorization, such as power of attorney (if applicable).
For Natural Persons (Individuals)
- A natural person is required to submit a valid and up-to-date trade license.
- They must provide an Emirates ID or passport for identification.
- The documents can be submitted as PDF or Word files. The file size must be 5 MB per document.
Who Should Register for Corporate Tax?
Knowing who must register for corporate tax in the UAE is important.
Under the corporate tax regime, every taxable person, including the free zone, must register with the Federal Tax Authority (FTA).
Every person running their business and business activities in the UAE under a trade license must register and get a Tax Registration Number (TRN).
Mistakes to Avoid During Corporate Tax Registration
Here are some common mistakes to avoid during the corporate tax registration process.
- If a company fails to register for corporate tax on time, it may face fines of up to AED 10,000.
- If the company’s information provided in the documents is incorrect, the application can be delayed or even rejected.
- If the records are insufficient, it can lead to audits or even penalties.
- If the company has selected the entity type as “legal persons-other” in the VAT registration, then at the time of the CT registration application process, the applicant can not edit the type of entity. If this mistake occurs, the application will be rejected by the FTA, and the company will have to wait for an update on the EmaraTax Portal.
Channels & Working Hours of EmaraTax Portal
You can apply for EmaraTax corporate tax registration application on the EmaraTax platform 24 hours a day and 7 days a week.
Service Fees
The corporate tax registration through the EmaraTax Portal is free of charge.
Estimated Time to Submit Application
It takes about 30 minutes to apply to the online platform.
Estimated Time to Complete the Application Process by FTA
After submitting the application, the Federal Tax Authority takes 20 days to process the corporate tax registration application. However, the FTA may take additional time if additional information is required. The applicant must provide the required information and resubmit the application, which can take another 20 days to complete. The registration application shall be rejected if the applicant does not resubmit the application within 60 days of receiving the notification.
Terms & Conditions
The terms and conditions set by the authorities are given below,
- All taxable persons should register for UAE corporate tax and get their Tax Registration Number (TRN) per the UAE corporate tax law.
- The FTA may also request certain exempt persons to register for the UAE Corporate Tax.
- Additionally, UAE branches of domestic companies are extensions of their head office and are not considered separate entities. Hence, the branches are not required to register separately for UAE CT.
Endnotes
In the end, we hope this article has answered the question, “How do I register for corporate tax in the UAE in Emaratax?” Understanding the corporate tax registration process is necessary to avoid fines and ensure smooth business operations in the UAE. It is also recommended that you consult professional tax consultants, as they can help you overcome business-related problems.
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