UAE Corporate Tax: Requirements for Registration, Deregistration & Filing Returns
Businesses preparing for the proposed UAE corporate tax need to understand the critical administrative requirements such as tax registration, deregistration, filing of tax returns and payment. Consulting with corporate tax consultants in Dubai will help the business owners to have a prior understanding of such compliance requirements. Failing to comply with these requirements may attract hefty corporate tax penalties in the UAE, which the government may announce soon.
However, corporate tax advisors in Dubai recommend that business owners should wait for the finalisation of the corporate tax law. It is advisable to make any decision after the government issue the UAE Corporate Tax Law as the current provisions envisaged in the Public Consultation Document are subject to changes. In this article, we share valuable insights on corporate tax registration, deregistration and return filing. Read ahead to make your corporate tax compliance journey easier:
Who Should Register for UAE Corporate Tax?
Businesses that are subject to corporate tax are required to carry out corporate tax registration in the UAE and obtain the Tax Registration Number The Federal Tax Authority (FTA) can automatically register a person for corporate tax if the person doesn’t register voluntarily. Corporate tax consultants in Dubai can assist businesses to register for corporate tax.
What Are the Requirements for Tax Deregistration?
Businesses are required to apply for tax deregistration when they cease to be subject to corporate tax. The reason for deregistration can range from cessation to company liquidation. Such companies need to apply to the FTA within three months from the date of cessation. The FTA will deregister a business if it is satisfied that the person has filed corporate tax returns and settled all of its corporate tax liabilities and penalties that are due for all periods up to and including the date of cessation. The FTA may deregister a business based on available information if the person doesn’t apply for deregistration within the time frame or comply with the payment and filing obligations.
Filing a Corporate Tax Return in the UAE: What Are the Obligations?
Businesses are required to prepare and file only one tax return and other related supporting schedules for each tax period. This provision will help to reduce the administrative burden on the taxpayers. Businesses are not required to file a provisional corporate tax return and make advance corporate tax payments. Businesses must submit each tax return and related supporting documents to the FTA within nine months of the end of the relevant Tax Period. Corporate tax advisors in Dubai can assist you to file the tax returns on time.
Should Free Zone Persons File Corporate Tax Returns?
Free zone businesses can benefit from the 0% corporate tax regime if they maintain adequate substance and comply with all the regulatory requirements. However, free zone persons will be subject to corporate tax and need to file corporate tax returns.
What Are the Conditions for Tax Payments and Refunds?
Tax payments to settle the corporate tax liability for a Tax Period must be made within nine months of the end of the relevant Tax Period. Taxpayers can request the FTA for a tax refund if they can demonstrate that a corporate tax refund may be due. The advice of corporate tax advisors in Dubai may come in handy for you while making the payments or applying for a refund.
What Are the Deadlines for Corporate Tax Payments & Filing?
The following table details the corporate tax filing and payment deadlines for businesses having year ends of 31 March, 30 June and 31 December:
Table: Illustrative Timetable for CT Filing and Payment Deadlines
|Financial Year End||30-Jun||31-Dec||31-Mar|
|First Tax Period||1 July 2023 – 30 June 2024||1 January 2024 – 31 December 2024||1 April 2024 – 31 March 2025|
|CT return must be filed, and CT payment made within nine (9) months of the tax period|
|Filing & Payment Due Date||31-Mar-25||30-Sep-25||31-Dec-25|
Hire the Best Corporate Tax Consultants in Dubai, UAE
As the UAE corporate tax regime is likely to start from June 1st 2023, businesses need to plan ahead and carry out high-level assessments and reviews of systems. As the upcoming tax could have profound implications, businesses can seek help from the best corporate tax consultants in Dubai such as Jitendra Chartered Accountants (JCA). JCA has a team of corporate tax advisors in Dubai who can help the businesses to comply with such complex provisions in the corporate tax regime.
Our services at JCA as Corporate Tax Consultants include CT Assessment & Advisory Services (one-time or retainer basis), CT Compliance Services & CT Agent Services to Represent to Federal Tax Authority (FTA) of UAE in case of any notices served by FTA. Ensure corporate tax compliance and avoid relevant penalties by availing of JCA’s corporate tax services in Dubai, UAE. JCA offers customised tax solutions to allow businesses to comply with the UAE corporate tax hassle-free.