Corporate Tax Registration Services in UAE
For corporate tax purposes, Taxable Persons in the UAE are required to register for Corporate Tax with the Federal Tax Authority (FTA). This tax is imposed on a company’s net income or business profits.
The statutory framework governing corporate tax in the UAE is Federal Decree-Law No. 47 of 2022, which defines the scope, conditions, and compliance standards applicable to all taxable entities.
To ensure accurate implementation and full compliance with the UAE Corporate Tax Law, it is highly recommended that businesses seek the assistance of qualified Tax Consultants in the UAE for expert advice and support.
Who Is Eligible for Corporate Tax in the UAE?
According to Federal Decree-Law No. 47 of 2022, all Taxable Persons in the UAE are required to register for Corporate Tax, unless they qualify for an exemption under specific conditions outlined in the Corporate Tax Regulations. Even entities that are eligible for tax exemption under Clause 1 of Article 4 of the Decree-Law — or those operating as unincorporated partnerships — must still register for Corporate Tax and obtain a Tax Registration Number (TRN) in order to be formally recognized as exempt.
Process for UAE Corporate Tax Registration
The corporate tax registration process in the UAE begins with businesses registering their trade license with the Federal Tax Authority (FTA) to obtain a Tax Registration Number (TRN).This process involves completing an online registration form through the FTA portal and submitting the required documents, including the trade license, articles of incorporation, and other supporting information.Once the registration is approved, the business will be issued a TRN, which must be used on all tax-related filings, correspondences, and official documents to ensure compliance with the UAE Corporate Tax Law.
Key Elements of Corporate Tax Registration in the UAE:
Key Components of Corporate Tax Registration in the UAE
For corporate tax registration purposes, Taxable Persons must consider several essential components to ensure full compliance with the UAE Corporate Tax Law. These elements help businesses maintain transparency, accuracy, and smooth tax operations.
1. Taxable Entities
Companies operating in the UAE must determine their tax liability based on their legal structure and business activities.
Entities subject to corporate tax include:
Limited Liability Companies (LLCs)
Partnerships
Branches of foreign companies
Free Zone companies (unless exempted under specific provisions)
2. Tax Registration
Businesses meeting the criteria for corporate tax are required to register with the Federal Tax Authority (FTA).
The process involves submitting:
Trade license details
Ownership and shareholder information
Financial records
Company contact information
3. Taxable Period
The FTA defines the taxable period for each registered entity, typically aligning with the company’s financial year. Businesses must maintain accurate records and ensure timely tax filings and payments within the designated period.
4. Taxable Profit Calculation
Registered businesses are required to calculate their taxable profits according to FTA guidelines.
This includes applying the applicable tax rate to net profits after making the necessary adjustments, deductions, and exemptions permitted under UAE tax laws.
5. Tax Returns and Payments
Companies must file corporate tax returns with the FTA within the prescribed timeframe.
This includes submitting:
Tax forms and financial statements
Supporting documentation of income, expenses, and liabilities
All tax dues must be settled within the specified deadlines to avoid penalties and fines.
6. Accounting and Record-Keeping
Businesses must maintain accurate accounting records and supporting documents to ensure compliance.
Records to be retained (for at least five years from the end of the taxable period) include:
Financial statements
Invoices and receipts
Bank statements
Tax correspondence
7. Auditing Requirements
Depending on turnover and regulatory requirements, certain companies must have their financial statements audited by an approved auditor.
The FTA may request these audited statements during tax assessments or investigations.
8. Penalties and Compliance
Failure to meet tax obligations can result in monetary penalties and other enforcement actions by the FTA.
Businesses should stay informed about current tax regulations, ensure timely submissions, and cooperate with FTA audits to maintain good standing.
Seek the expert services of Tax Consultants in UAE
To ensure full compliance with the UAE Corporate Tax Law, mitigate potential risks, and implement effective tax strategies, it is highly recommended that Taxable Persons consult experienced Tax Consultants in the UAE.At CorporateTaxUAE, we are dedicated to helping businesses and individuals fulfill their tax obligations while ensuring adherence to the Federal Tax Authority’s regulations and standards.
Contact us today to speak with our expert tax consultants — we’ll be glad to assist you with seamless corporate tax compliance and planning.