Corporate Tax Registration and Deregistration in the UAE

In light of recent developments in the UAE’s corporate tax system, the need to obtain significant tax information is paramount. However, most individuals are still unaware of these developments. In this blog, we are enlightening some basic information on corporate tax registration and deregistration in the UAE. Whether you’re establishing a new business or contemplating changes in your existing tax status, join us on this probe. We are shedding light on the essentials of corporate tax registration and deregistration in the vibrant landscape of the UAE.

Corporate Tax Registration:

Corporate tax registration involves a formal process through which a business entity becomes officially recognized and registered for corporate taxation. All taxpayers, as prescribed by the Minister, must register for UAE CT and obtain a tax registration number (TRN). The Federal Tax Authority (FTA) may also request certain exempt persons to register for corporate tax. Article 51 gives considerable information on tax registration:

1. Any taxable person shall register for corporate tax with the FTA in the form, manner, and within the timeline prescribed by the FTA and obtain a Tax Registration Number. However, there might be exceptions in circumstances prescribed by the Minister.
2. In cases of exemption from corporate tax, the Authority may require certain exempt persons and unincorporated partnerships, as applicable, to register for corporate tax and obtain TRN.
3. The Authority shall have the capacity to register a person for corporate tax from the date it becomes a taxable person. However, it is solely based on the Authority’s discretion and the availability of the information.

Corporate Tax Deregistration:

There are instances where a taxable person may apply for corporate tax deregistration with the Authority. Article 52 sheds light on the instances where a taxable person shall apply for deregistration.

1. A taxable person with a valid TRN shall file a tax deregistration application with the Authority in case of the termination of their business. The termination of a business or business activity can be through dissolution, liquidation, or otherwise. The deregistration application must be in the form and manner and within the timeline as stipulated by the Authority.
2.  A taxable person shall not be deregistered in cases where there is any corporate tax liability due, including any penalties and tax returns, as per the tax law. This also includes the tax return for the tax period up to the date of cessation.
3. If the Authority approves the deregistration application, the Authority shall deregister the person from the date of termination of business. However, the Authority may deregister the person on another date if determined otherwise by the Authority.
4. In cases where a person does not fulfill the deregistration requirements under Article 52, the Authority may deregister the taxable person at its discretion and subject to the availability of information. However, the deregistration will be effective from the later date of either:

a) the last day of the tax period on which it is evident that the conditions under clause 2 of Article 52 are met.

or

b) the date the taxable person ceases to exist.

Seek professional advice.

Given the complexities of corporate tax laws and their potential impact on businesses, seeking advice from tax professionals is advisable. Creative Zone Tax & Accounting is a notable and well-reputed tax service provider. Professional guidance can ensure accurate compliance with evolving regulations, helping businesses navigate the ever-changing landscape of UAE corporate taxation.

Conclusion:

Navigating corporate taxation in the UAE demands a keen understanding of corporate tax registration and deregistration essentials. Recent developments underscore the significance of acquiring comprehensive tax knowledge. Article 51 mandates the registration of corporate tax, with exceptions stipulated by the Minister. However, it also highlights the Authority’s right to register a person at its discretion on the available information. Conversely, Article 52 outlines instances for tax deregistration, emphasizing adherence to timelines and conditions and providing clarity on effective deregistration dates. As businesses evolve within the vibrant UAE landscape, a nuanced comprehension of these processes is indispensable for effective tax compliance.

Creative Zone Tax & Accounting:

We go beyond conventional solutions, offering personalized insights that empower your financial strategy. Whether you are a startup venturing into the UAE market or an established business seeking optimal financial efficiency, our dedicated professionals are ready to guide you through every step. Elevate your business with CZTA—where expertise meets innovation and your financial success takes center stage. Contact us now.