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Corporate Tax Registration Explained

 

Corporate Tax Law Provisions

  • All Taxable Persons are required to register for Corporate Tax with the Federal Tax Authority (“the FTA”). There is no registration threshold.
  • Certain exempt persons such as a Qualifying Public Benefit Entity, a Qualifying Investment Fund, a pension or social security fund (public or private) and an Unincorporated Partnership also required to register for Corporate Tax.
  • As per Corporate Tax FAQs – Taxpayers are required to register before they file their first corporate tax return i.e. within 9 months after their financial year end. For ex: An Entity having Jan-Dec 2024 Financial Year can register on or before September 2025.

Recent Updates

Ministerial Decision No. 43 of 2023 – Exception from Tax Registration

Following Persons are not required to register for Corporate Tax:

  • Government Entity;
  • Government Controlled Entity;
  • Person engaged in an Extractive Business or Non-Extractive Natural Resource Business that are subject to Emirate-level taxation;
  • Non-Resident deriving only UAE Sourced Income and that does not have a Permanent Establishment in the UAE

The FTA Decision No. 7 of 2023 – Time lines specified for following exempt persons to obtain corporate tax registration

Sr No.Type of personDue date for obtaining corporate tax registration
1Qualifying Public Benefit Entity1st October 2023
2(i)        Qualifying Investment Fund, 1st June 2024
(ii)       Specified pension or social security fund (public or private) and 
(iii)     Specified juridical person wholly owned or controlled by an Exempt Person.

FTA Announcements / Initiatives

  • Corporate tax registration is currently available only for UAE Public Joint Stock Companies, Private Shareholding Companies and Private Companies i.e. LLC. The FTA is inviting these entities to begin with corporate tax registration.
  • The FTA has published “Corporate Tax Registration User Manual” to assist applicants in navigating through registration process. Various seminars are also being conducted to create awareness about registration process.
  • Foreign business applying to register for UAE corporate tax, may choose to appoint a tax agent in the UAE.
  • Documents required for registration – Trade License, Authorised Signatory Passport / Emirates ID, Power of Attorney etc. If already registered for VAT or Excise, relevant information would be pre-populated.

MCA Comments

  • Taxpayers can evaluate applying for corporate tax registration, upon receipt of invitation from the FTA.
  • An application for registration can be filed electronically through the website of the FTA i.e. EmaraTax.
  • It would be advisable to conduct impact assessment, before applying for corporate tax registration, so that the structure and basis of registration is clear prior to registration.
  • Qualifying Public Benefit Entities should initiate corporate tax registration as soon as available, considering that registration needs to be obtained before 1 Oct 2023.

Disclaimer: UAE Corporate Tax (CT) Law has been recently introduced. This is a summarised version of the CT legislation and it is advised to refer to the detailed law provisions prior to initiating any decisions.

Please feel free to contact us for any further clarification/impact assessment assignments.

Contact Details

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