UAE Corporate Tax Registration Kicks Off: Key facts you must know

The Federal Tax Authority (FTA) has started accepting requests for UAE corporate tax registration. Public Joint Stock Companies and Private Companies in the UAE can register for corporate tax through the FTA’s EmaraTax platform starting from May 15th 2023. For many months, businesses have been preparing for corporate tax in the UAE in line with the Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses (UAE Corporate Tax Law).

Now, some of those businesses can take the first step by submitting a registration request with the FTA. However, you need to be aware of the requirements and procedures before making the important leap. Corporate tax advisers in Dubai can be of immense help to make the registration process hassle-free. Here is a list of key facts you must know before applying for the UAE corporate tax registration:

Who should register for the UAE corporate tax now?

As per the latest update from the FTA, Public Joint Stock Companies and private companies are required to register for the UAE corporate tax now. As per the UAE corporate tax law, Public Joint Stock Companies and private companies in the UAE will be subject to a 9% corporate tax rate from the beginning of their first financial year that starts on or after June 1st 2023. Therefore, such companies should obtain a Tax Registration Number (TRN) for the purpose of corporate tax in the UAE. Corporate tax consultants in Dubai can advise you on how to conduct the registration and obtain the TRN as early as possible.

Can Free Zone Persons register for corporate tax now?

The current opportunity for tax registration is only open for private joint stock companies and private firms only. This opportunity is not open to free zone persons eligible for corporate tax registration in the UAE. The FTA will announce the UAE corporate tax registration date for free zones later.

Can other categories of taxable persons register now?

Just like Free Zone Persons in the UAE, the date for registration will be announced later. For example, this opportunity is not open to natural persons/individuals that are taxable persons under the UAE corporate tax law. Corporate tax consultants in Dubai can keep you up to date about the dates and deadlines.

Is the registration open for Corporate Tax Groups?

Currently, the corporate registration process is open to individual legal persons only. Companies that are seeking to form a corporate tax group in the UAE must register individually first. However, entities looking to establish a UAE corporate tax group can do it later as per the FTA norms. If you think the corporate tax group formation is complex, it is advisable to avail reliable corporate tax services in Dubai, UAE.

When will the UAE Corporate Tax become effective?

The UAE Corporate Tax will be effective for the financial years commencing on or after June 1st 2023. Availing the early corporate tax registration opportunity will provide the companies with ample time to comply with their legal obligations. Companies providing corporate tax advisory in Dubai can help you further.

What is the threshold for corporate tax in UAE 2023?

As per the UAE Corporate Tax Law, a standard rate of 9% will apply to taxable income exceeding a threshold of AED 375,000, and a rate of 0% will apply to taxable income not exceeding that threshold. The UAE corporate tax rate of 9% is one of the most competitive rates in the region as well as across the world.

Avail of Top Corporate Tax Services in Dubai, UAE

As a business owner, you must understand the tax laws and regulations in the UAE where one operates. Given the same, the UAE corporate tax would be a crucial aspect while doing business in the country. Consultants providing reliable corporate tax consulting services in Dubai, such as Jitendra Chartered Accountants (JCA) can help you comply with the regulations and requirements.

Our corporate tax consulting services in Dubai include CT Assessment & Advisory Services (on a one-time or retainer basis), CT Transfer price assessment services, CT Compliance Services & CT Agent Services to Represent the 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. Talk to our consultants for tax solutions that you can count on.