A guide about company tax registration in the UAE
Do you want to complete corporate tax registration?
If so, you may wonder how to register for UAE corporate tax. For CT registration in Dubai, there are a few steps you must take. However, you must first understand corporate tax and why the UAE government levies it on corporate profits before Prospr walks you through each step.
What is corporate tax?
A company’s corporate income is subject to a tax rate known as corporate tax. The UAE government imposed this tax to boost economic growth throughout the emirates. To show its dedication to upholding worldwide standards for tax clarity and avoiding unethical tax practices, the government began enforcing corporate tax in June 2023.
The following corporate tax rates are stipulated in the UAE CT tax law.
- If taxable income does not exceed AED 375,000, the corporate tax rate is 0%.
- The corporate tax rate for qualifying free zone persons (QFZPs) is 0% of their qualifying income.
- For taxable income beyond AED 375,000 or FZP non-qualifying income, a corporate tax rate of 9% is applicable.
- Multinational corporations pay 15% of corporate tax. MNE
Where can I register to pay corporate tax in the UAE?
The Federal Tax Authority (FTA) has set specific criteria for corporate tax registration in the UAE. The taxable individual must satisfy these criteria to be considered eligible for registration. In the UAE, some taxable individuals must register for corporate tax, while others may do so voluntarily.
The question now is, where do you have to register? Thanks to the Free Trade Agreement, the Emaratax platform has made registering for corporate tax in Dubai simpler for taxable individuals. You can log in to this portal using your FTA account details or UAE Pass.
The user-friendly EmaraTax platform helps you manage your tax, registration, compliance, and VAT payment needs from one convenient location. You can create a new account on the Emara Tax platform using the credentials from an FTA account or UAE pass.
In the UAE, how do I register for corporate tax?
Following your login to Emaratax, you will provide details about your business, including its legal structure, licence details, approval, and trading name. You will then apply for a tax registration number (TRN). As soon as this number is issued, you must pay the taxes set by the UAE government that apply to your business.
Corporate tax registration in the UAE can be done as follows.
Step 1: Create a user profile.
Use your UAE pass or FTA credentials to access your account. You will be directed to the user dashboard to find a list of tax-eligible individuals linked to your profile. Click “Create” to add a new taxable person to your Emara Tax user profile if there isn’t a list.
Start your registration application by selecting the register option beneath the corporate tax tile. On the screen, you’ll find comprehensive instructions and guidance. Carefully read them and tick the box to confirm. Then, click the start button to start the registration process.
Important note: The portal divided the entire application process into a few short stages to make it as simple as possible. You will see a progress bar that indicates the number of steps left to complete the process. You cannot move to another section before the current section is filled out, and you can omit specific optional fields. So, toto avoid having to submit your application again or having it rejected, ensure you include all necessary paperwork and all pertinent parts.
Also read about if Dubai is tax free or not?
Step 2: Select the kind of business entity
Select the appropriate business entity type from the provided list. Currently, the following entity categories are eligible for CT registration:
- UAE Public Joint Stock Company is the legal person.
- A UAE private company, including an establishment, is a legal person.
Within this entity section, you will soon find a variety of other alternatives.
Click the Next step after entering all the necessary details.
Step 3: Give your identification details
This is where you fill in the “Identification details” section with all the entity’s pertinent information. The primary trade licence details should be provided. The details of your trade license-related economic activity will be added when you click “Add business activities.” The Add button should be clicked. Once you add all the necessary details, an activation code will appear on the screen.
Step 4: Add owner details
Navigate to the “Add owners” button. If the owners of this entity you intend to register own 25 percent or more of it, they must now provide their details. Enter the pertinent owner details. Then, click the add button to add other owners.
Step 5: Adding Branch Details
Provide branch details, trade license, owners, and business activities details if your company has many branches. Though operations are carried out at the branch level, you must remember that the head office only needs one registration. Click “Next step” after filling up all branch details.
Step 6: Add Address/Contact Details
The “Contact details” section will be where you are directed. The details of your registered business address will be included here. Do not add any other information, please. You ought to use that address for business. You must designate a tax agent in the UAE if you plan to register a foreign company. This agent will provide the required details on your behalf once all the details have been submitted. For all the changes made in this section to be saved, click “Next step.”
Step 7: Include a valid signature
The “Authorized signatory section” will be the one you are directed to. Add pertinent details by selecting the “Add authorized signatory” button. Click “Add” once you’ve provided the legal signature. A signatory with authorization may be added. Click “Next step” after you’re done.
Step 8: Review and declaration
In this section, you will be directed towards “Review and Declaration,” where you will find the essential details you specify in your entire section. It enables you to review the details of each section thoroughly. After reviewing your application, you can tick the box indicating that you have done so and that the information you supplied is accurate. Press the “Submit” button.
Your corporate tax registration application has been submitted successfully. You will be given a reference number. This reference number should be kept secure, as it will be used for future interactions with the FTA.
What happens when a corporate tax registration application is submitted to the UAE?
Awaiting the FTA’s review of your application is required.
- FTA will send you an email requesting details and asking you to add more information to your user profile if they require additional information to verify your application.
- If a decision is made about your application, you will be notified by email.
- The EmaraTax portal is a convenient way to monitor the progress of your application.
Regarding the UAE corporate tax, who is exempt?
The individuals listed below are exempt from corporate tax in the United Arab Emirates as per the Federal UAE Corporate Tax Law:
- A person doing an extractive or non-extractive natural resource business in the UAE Government entity and any entity controlled by the UAE government
- Appropriate investment fund or public benefit entity
- A public pension or social security fund, or a private pension or social security fund that complies with the Minister’s specified conduct requirements or is subject to regulatory control by the state’s appropriate authority
- judicial person founded in a state, which is entirely owned and controlled by specified, exempt individuals
- When the Cabinet issues a decision based on the Minister’s recommendation, any other individual may be exempt from corporate tax.
What is the UAE’s deadline for CT registration?
The date of incorporation or the issuing of a trade license determines the deadline for corporate tax registration, regardless of the year, according to the timeframes given by the FTA. We encourage you to register for corporate tax promptly. Penalties will be imposed if you fail to register your company for corporate tax in the UAE on time.
Table: Corporate tax registration deadline 2024
Date of license issuance irrespective of year of issuance | Corporate tax registration deadline 2024 |
1 January -31 January | 31 May 2024 |
1 February- 28/29 February | 31 May 2024 |
1 March -31st March | 30 June 2024 |
1 April – 30 April | 30 June 2024 |
1 May -31What is the deadline for CT registration in the UAE?
May |
31st July 2024 |
1 June -30 June | 31st August 2024 |
1 July- 31st July | 30 September 2024 |
1 August- 31st August | 31st October 2024 |
1 September-30 September | 31st October 2024 |
1 October – 31st October | 30 November 2024 |
1 November – 30 November | 30 November 2024 |
1 December – 31st December | 31st December 2024 |
Entities incorporate on and after 1st March 2024 | 3 Months from the date of incorporation or from the end of the financial year if the entity is incorporated in a foreign jurisdiction but controlled in the UAE |
Let Prospr handle corporate tax registration process for you
We have walked you through each step of the corporate tax registration process in the UAE. We are here to speed up the regeneration process, which involves numerous steps and can be somewhat complex. For corporate tax in Dubai, our tax experts are available to answer all your questions and assist with the necessary paperwork.