The Ministry of Finance UAE has previously announced the Corporate Tax in 2022. On 22 October 2023, the President of UAE, “Highness Sheikh Mohamed bin Zayed Al Nahyan,” issued a Corporate Tax Law. This law provides Federal Corporate Tax legislation for implementation, and its introduction is applicable from the financial year 1 June 2023.

UAE Corporate Tax 2023 now allows Dubai tax consultants and audit firms to offer Corporate Tax Registration and Advisory services. This announcement of Corporate Tax Registration has attracted many businesses at large. It is a significant step forward to transforming UAE businesses through Corporate Tax Registration transparency and implementing international standards. This initiative is a gateway to protect the system from fraudulent tax practices.

Also Check: Corporate Tax Services in UAE

What is Corporate Tax Registration in UAE?

Corporate Tax is a direct form of Tax levied on the net income of any business or corporation. Corporate Tax is also known as “Corporate Income Tax” or “Business Profit Tax”. FTA registers an eligible person for Corporate Tax and allows the individuals to receive a unique Corporate Tax Registration Number.

How to do Corporate Tax Registration in UAE?

The FTA has created a platform for online registration of Corporate Tax called “Emaratax Platforms.” They have started pre-registration as well on this platform. This online registration portal manages tax registration, payments, returns, and refunds, including de-registration. You can also make VAT payments through this single platform.

● Firstly, create your FTA account.
● Secondly, log into Emaratax platforms through the same information.
● Thirdly, upload and submit your required documents for Tax.
● After successful registration, get a registration number for corporate tax purposes.

Corporate Tax Registration Fees

● After the registration, the taxable person must pay a standard fee of 9% Corporate Tax on taxable income above AED 375,000.

● Whereas a person is exempted from the Corporate Tax with taxable income up to AED 375,000. In that case, 0% tax is applicable.

Corporate Tax Registration Documents and Forms

If the applicant is a Natural person, then the following documents are required;

● Trade license, where applicable

● Emirates ID / Passport of the applicant Whereas, in the case of Legal Persons, applicants must submit the following documents:

● Trade license

● Emirates ID / Passport of authorized signatory

● Proof of authorization for the authorized signatory.

Eligibility Criteria for Corporate Tax Services

The following taxable persons are eligible for Corporate Tax Services

● The UAE’s companies and juridical persons are appropriately managed and controlled.

● Under Cabinet Decisions, any individual carrying out business activities in the UAE.

● Any other foreign legal entity that is a non-resident, juridical individual with a Permanent Establishment in the UAE.

● Moreover, UAE Free Zone juridical persons also fall under the scope of the Corporate Tax as a Taxable Person.

● Whereas, the non-resident person with no Permanent Establishment in the UAE may be subject to Withholding Tax at 0%. Withholding Tax is a Corporate Tax to be collected by the payee on behalf of the income recipient.

Who Qualifies for Corporate Tax Registration Services?

● Under Federal Tax Authorities law 47, every taxable person falls in this corporate tax regime, even from a free zone.

● Taxable persons must register for Corporate Tax and receive a Registration Number.

● If a taxable person is considered exempted from UAE Corporate Tax 2023 by FTA, the individual must be registered in the declared time by authorities.

● Moreover, FTA requirements include registering a Taxable Person under Corporate Tax registration UAE. The authority requires them to own a unique registration number to be used by Tax Authorities for Tax implementation.

Also Check: What is Corporate Tax

Who is Exempted from Corporate Tax Registration Services UAE?

The following businesses and corporations are exempted from the Corporate Tax Registration services:

● Government Entities are automatically exempted.

● Controlled by Government Entities are exempted if specified from the Cabinet Decision.

● Extraction businesses or non-extraction natural corporations, if declared exempted by the Ministry of Finance

● Public benefit entities are exempted if listed under Cabinet Decisions.

● If the Federal Tax Authority approves, the exempted entities include public or private pensions, social security funds, and qualified investment funds.

● UAE subsidiaries, which are Wholly owned and controlled by the Government Entities, are exempted if FTA approves.

How Can We Help With Corporate Tax Registration Services?

Bestax offers various financial and business services covering Corporate Tax Registration, assessment, filling, and Corporate Tax Planning services. We have a qualified team of experts ready to assist you if you face any hurdles in understanding Corporate Tax Law, Corporate Tax Registration process, Corporate Tax filing in UAE, or Tax deductions in UAE. We also assist in other business taxation services, such as VAT, Corporate Tax Planning, filing Tax returns, and implementing tax planning.

No matter where your business stands, Bestax-qualified accountants know how to handle your tax implications well. We pride ourselves on providing not only Corporate Tax Consultancy services, Corporate Tax rates in UAE, and Corporate Tax filing in UAE but also Corporate Tax Compliance in UAE with the laws to improve the financial position of businesses.

Bestax emphasizes quality services regarding strategic planning of Corporate Tax and Taxation Consultancy in the UAE, aligning it with the business goal of achieving growth and success.

Also Check: Tax Planning Services

Final Thoughts

Bestax Chartered Accountants are authorized consultancy firms that provide the UAE’s highest Corporate Tax Registration services. With exceptional customer services, we not only locate the complexities of Corporate Tax Registration in UAE but also help your business thrive in the diverse market.

With Bestax quality Corporate Tax Registration Services, your business success is eminent. We help you determine where your business stands and provide relevant tax services promptly. You can count on us for your future Corporate Tax Planning and receive complete assistance to help you stand out among competitive businesses.

Frequently Asked Question

If I am already registered for VAT, must I register again for UAE Corporate Tax?

Yes. Taxpayers will be required to register for UAE CT (and update their details, if needed), even if they are already registered for VAT.

Will UAE business branches’ income be subject to UAE Corporate Tax?

Yes. The income of UAE branches will be included in the taxable income and UAE CT return of their UAE “parent” or “head office.”

Will the income of Foreign businesses be subject to UAE Corporate Tax?

Where no election is made, or the income of the foreign branch or permanent establishment is not eligible for an exemption from CT, the UAE CT payable on the payment of the foreign department or permanent establishment can be reduced by the corporate Tax (or similar) paid on the relevant income in the foreign jurisdiction.

Why has the UAE introduced UAE Corporate Tax?

A competitive CT regime based on international best practices is expected to cement the UAE’s position as a leading global hub for business and investment and accelerate the UAE’s development and transformation to achieve its strategic objectives. Introducing a CT regime also reaffirms the UAE’s commitment to meeting international standards for tax transparency and preventing harmful tax practices.

Will Corporate Tax replace VAT in the UAE?

No, CT and VAT are two different types of taxes. Both will continue to apply in the UAE.

Are you ready to fuel your business with our Corporate Tax Registration services in the UAE?

Contact us today for a personalized consultation if you need any help with Corporate Tax Registration Services. Let’s make your business grow with our top-notch Corporate Tax Registration Services.