Corporate Tax Registration in UAE
Even if the UAE CT is not applicable, all UAE-based businesses must register for corporate tax by 2024. In addition, they have to generate financial statements using IFRS, file yearly tax reports, and acquire a taxpayer registration number. The UAE Ministry of Finance has established a 10,000 AED fine for late registration of corporate tax.
The Emirates is no longer a tax-free nation. As of June 1, 2023, people and legal entities doing business in the United Arab Emirates are subject to a 9% corporate tax on profits over AED 375,000. Profits under this threshold are subject to a corporate tax rate of 0%. Special conditions apply to free zones.
Any taxable person, including those in free zones, must register for corporate tax purposes and acquire a taxpayer registration number in compliance with Federal Tax Authority Decree-Law No. 47.
Registration and tax return filing deadlines
Registration is done through the EmaraTax Portal, and the FTA website has comprehensive instructions. The first corporate tax return must be completed before submission. The return must be filed within nine months following the end of the applicable tax period. AED 10,000 is the fine for missing registration deadlines.
In 2024, businesses must register for corporate tax purposes. The registration deadlines are displayed in the table below:
| Month of License Issuance | Deadline for Corporate Tax Registration |
|---|---|
|
January or February
|
May 31, 2025 |
|
March or April |
June 30, 2025 |
|
May |
July 31, 2025 |
|
June |
August 31, 2025 |
|
July |
September 30, 2025 |
|
August or September |
October 31, 2025 |
|
October or November |
November 30, 2025 |
|
December |
December 31, 2025 |
How to do UAE Corporate tax registration?
You must either utilize your current tax authority account or register by creating an account on the EmaraTax portal. There is no cost associated with this service.
Applications for registration may take up to 20 business days to process by the tax authority. When registering, the following paperwork is needed:
- Copy of the passport of the license owner/shareholders of the company.
- Emirates ID of the license owner/shareholders of the company.
- Copy of the valid trade license.
- Company contact details (email, phone).
- Contact details of authorized representatives (email, phone).
- Memorandum and articles of association.
- Certificate of Incorporation.
Who is subject to UAE corporate tax?
Mainland Companies
The tax rate is 0% if a company’s profit for the tax period is less than AED 375,000. Nonetheless, tax returns still need to be filed before the deadline. Corporate taxes are 9% of profits over AED 375,000.
Free Zone Companies
Free zones were exempt from taxes in the past. Under the new law, corporations and individuals operating in free zones under a license are also liable for corporate tax. However, there are some exceptions:
- For companies making money from eligible operations, the tax rate stays at 0%.
- The tax rate on earnings from other sources is 9%.
Qualifying Free Zone Persons are businesses whose operations satisfy the requirements for Qualifying Activities (QFZP). The following are the requirements:
- Their operations must fall into one of the precise categories of acceptable activities that the government has established.
- They have to stay in the free zone.
- They need to have a sizable asset base.
- They need to have a sufficient quantity of skilled workers.
- They have to show that their operating costs are adequate.
Self-employed persons (freelancers)
If a person’s yearly turnover is less than AED 1 million, they are exempt from corporate tax if they are a freelancer registered in a free zone and operating under a commercial license. A freelancer may be required to register for corporate tax and submit yearly tax returns if this threshold is surpassed.
Additionally, they must pay 9% of profits over AED 375,000. Freelancers can choose the beneficial tax system known as Small Business Relief, which exempts them from paying corporate tax if their revenue for the tax period is less than AED 3 million. Until December 31, 2026, the Small Business Relief tax scheme will be in place.
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Sheikh Zayed Road Dubai, United Arab Emirates P.O. Box 27614.
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Registration for individuals exempt from corporate tax payment
Even persons exempt from corporate tax must register for CT purposes:
- Departments, authorities, and other government agencies of the federal and federal governments.
- State-owned businesses.
- Businesses in the UAE that explore natural resources.
- Organizations that benefit the public.
- Funding for investments.
- Social Security and pension funds, both public and private.
Registration for offshore companies
Foreign businesses registered in UAE offshore zones are exempt from corporate tax. They are also not required to register with the tax administration because they cannot conduct business operations within the UAE or have a permanent office.
Registration for multiple businesses and branches
If a business has branches, it lists all of its divisions on the form and registers as a single legal entity for corporate tax purposes. It is not necessary to register each branch separately.
For corporate tax purposes, a person is regarded as a single taxpayer if they engage in several taxable business activities. In this instance, all business types’ income and expenses are included in a single tax return.
Corporate tax and accounting
Every year, all businesses that are registered for corporate tax reasons must file financial accounts and maintain accounting records.
International Financial Reporting Standards (IFRS) are followed in the preparation of financial statements. According to corporate tax laws, taxable income is the net profit for the tax period after certain adjustments.
Businesses that are registered for corporate tax reasons are required to have accurate accounting records in order to support all revenue streams and submit error-free tax returns. The best course of action is to consult tax experts and use expert accounting and bookkeeping services for Dubai corporate tax registration.
Corporate tax and VAT
For corporate tax purposes, a taxable person must register separately if they are already registered for VAT. The two do not exclude one another. There are laws specific to each tax regime.
Registration for corporate tax with JSB Incorporation
The following services are offered by us when it comes to corporate tax registration in Dubai:
- Registration with UAE tax authority.
- Registration on the EmaraTax portal.
- Corporate tax registration.
- VAT registration.
- Obtaining a taxpayer registration number.
- Filing tax returns.
- Accounting and bookkeeping services.
- Preparation of financial statements according to IFRS.
- VAT management and submission of quarterly VAT reports.
Conclusion
JSB Incorporation is a group of seasoned tax professionals, accountants, and business consultants who have worked with UAE companies for more than a decade. Please contact us if you or your company require assistance with business accounting and bookkeeping, corporate tax or VAT registration, or if you have any questions!
Book your free consultation call today with our experts to discuss your requirements.
FAQs
All businesses earning taxable income above the threshold must register.
Yes, but qualifying free zone entities may benefit from a 0% tax rate on eligible income.
You can register online through the Federal Tax Authority (FTA) portal.
You'll need your trade license, financial records, and company details.
Deadlines vary depending on your fiscal year; check the FTA guidelines.
Don't miss out on this limited-time opportunity!
We'd Love To Hear From You
contact us
Find us Here
Office No 20, 4th Floor, Al Moosa Tower 2,
Sheikh Zayed Road Dubai, United Arab Emirates P.O. Box 27614.
Get In touch
+971 4 824 4842
info@jsbincorporation.com
