Corporate tax registration for businesses aims to comply with legal obligations and avoid penalties. With the introduction of new tax protocols, the number of registered companies is swiftly increasing. In 2023 alone, over 10,000 new businesses registered for corporate tax. It reflects an upsurge in awareness of tax requirements. It is fundamental for companies to be properly registered because businesses can enjoy several benefits from countless tax incentives and uphold their credibility in the modest market of UAE.
Who is required to get registered for Corporate Tax in the UAE?
Corporate tax registration is compulsory for most businesses and legal entities involved in commercial activities in the UAE such as;
- UAE-based companies
All incorporated companies in the UAE, such as both onshore and offshore entities, have to be registered for corporate tax.
- Foreign companies
All the foreign entities that have a permanent establishment or produce income from the UAE are also mandatory to get registered.
- Branches of foreign companies
All the Branches of foreign companies that are conducting business in the UAE, are also mandatory to get registered for corporate tax.
- Free zone businesses
Companies working in free zones may get the advantage of specific exemptions. It is important to know that it all depends on the nature of their activities, they may still need to register. It is significant for free zone entities to verify their specific requirements, as qualifying free zone entities involved in non-exempt activities have to comply.
- Joint ventures and partnerships
Some legal structures such as partnerships engaged in commercial or business activities in the UAE have to be registered for corporate tax in the UAE.
What are the Steps for Corporate Tax Self-Registration in the UAE?
Corporate tax self-registration in the UAE is a straightforward process that ensures businesses comply with the latest tax regulations. Follow these clear steps to complete the registration:
- Collect all Required Documents
The primary step for registering corporate tax is to make sure you have the needed documents on hand such as;
- Trade license
- Emirates ID
- Additional documents depending on business type
- Company’s financial statements
- Articles of association
These documents provide important information for authenticating the company’s legal standing and financial position.
- Visit FTA Portal
The Federal Tax Authority supervises corporate tax registration in the UAE. After collecting the essential documents, access the official FTA portal and log in if you have an existing account. It is important to make sure that the email used for registration is regularly monitored. Your given email will be used for all official communication.
- Fill the Registration Form
After logging in, look for the corporate tax section of the portal. Select the Corporate Tax Registration option, which will direct you to the registration form. It is mandatory to fill in all the required fields on with precision. It includes;
- Company name, trade license number, and address
- Nature of business activities
- Details of company ownership (shareholders, partners, etc.)
- Annual revenue and financial figures
Make sure that all information is correct. Impression and errors can delay the registration process or lead to penalties.
- Submit required documents
After completing the form, submit all the previously collected documents to enhance your application. The FTA may demand supplementary documents if essential, so make sure to observe your email for any continuation requests.
- Review and Submit
The next step after filling out the form and submitting the documents is to fully review all the details before submission. Once gratified, submit the form for processing.
- Receive Confirmation
After submission, you will get an acknowledgment email from the FTA. It will prove as a receipt of your registration. The FTA will then evaluate your application. If all information is correct, they will issue your corporate tax registration number.
Conclusion
To ensure a smooth and obedient journey in self-managing your corporation tax registration, it is important to know the registration process and its importance. By registering for corporation tax, you are taking the essential steps to satisfy your legal requirements and contribute to the development of your business. Some businesses may face issues while registering for corporate taxation in the UAE. It is suggested to get help from FAR Consulting Middle East. Their proficient team can help businesses address all the issues.
