UAE Corporate Tax deadline ends today: How to register and file

The UAE Federal Tax Authority (FTA)’s deadline for businesses to register for Corporate Tax purposes with licences issued in January and February (regardless of the year of issuance) ends today.

The FTA had earlier this year issued a notification, reminding businesses, to submit their Corporate Tax registration applications no later than May 31, 2024, to avoid violating the tax law.

In the April press statement, the  FTA stressed the importance of submitting Corporate Tax registration applications within the time frames specified in FTA Decision No.3 of 2024, which came into effect from March 1, 2024, taking into consideration that Cabinet Decision No. 10 of 2024, which issued an administrative penalty on the taxable person, who has not submitted a registration application within the prescribed timeline.

This means, fines would begin to be applied to the taxable person who does not comply with the requirements to submit Corporate Tax registration applications before the specified deadlines for each category of Corporate taxable persons.

The decision defines deadlines for applying to register for Corporate Tax for both juridical and natural persons, whether they are residents or non-residents.

This follows the FTA’s new deadlines for businesses to register for corporate tax, significantly bringing forward the deadlines for businesses – in most cases more than a year earlier than originally indicated.

The new staggered deadlines throughout 2024 require the first group of companies to be registered by May 31, with all companies to be registered by the end of December 2024. With this new framework, the FTA has grouped businesses depending on the month in which their original licence was issued, regardless of the year of licence issuance.

To give a clear picture of the new time frames, the FTA has released a schedule showing the registration deadline corresponding to the month of licence issuance.

What do the revised registration deadlines mean for businesses?

Whilst this announcement impacts the timing of registration, there is no change to the criteria of who needs to register, which includes all UAE-based companies. Businesses that miss their deadline will face a hefty fine of Dhs10,000 for late registration.

Furthermore, the FTA indicated that there will be no grace periods, and fines will be incurred immediately upon missing the deadline.

What is the UAE Corporate Tax rate?

0 per cent for taxable income up to Dhs375,000
9 per cent for taxable income above Dhs375,000

How to register For UAE Corporate Tax?
The FTA has introduced a pre-registration system through the EmaraTax platform to initiate the corporate tax registration process in the UAE. EmaraTax is an online portal designed to streamline various tax-related activities, including registrations, returns, refunds, de-registrations, and payments.

Who is required to register for Corporate Tax?

All taxable persons must undergo registration for UAE Corporate Tax and secure a Corporate Tax Registration Number.

How to obtain a tax registration number (TRN)
The first step in registering for corporate tax in the UAE is obtaining a tax registration number (TRN). This number is unique to your business and is required for all tax-related transactions in the country.

To obtain a TRN, you will need to visit the FTA website and complete the online registration form. The form will require you to provide information about your business, such as its legal structure, trade license number, and contact details. Once you have submitted the form, the FTA will review your application and issue a TRN if everything is in order.

Firms have to access the FTA portal to attain a unique 15-digit TRN after finishing the VAT registration process.

They’d have to visit the site, make an account, verify the email address, log in and click on Register for Vat Option, fill in the data after the 8-step VAT Registration online form, review the details and submit the form for FTA approval.

You will be able to check the status of your VAT application and, once approved, view your TRN number.

What documents are required for Corporate Tax registration in the UAE?

The process for corporate tax registration is conducted online.

Here’s a list of documents required for Corporate Tax Registration in UAE.

• Copy of Eligible Trade License
• Passport copy of the owners/partners/shareholders who own the licence
• Emirates ID of the owners/partners/shareholders who owns the licence
• Memorandum of Association (MOA) – Or – Article of Association (AOA)
• Concerned person’s contact details, namely Mobile Number and E-mail
• Contact details of the company include complete address and P.O. Box
• Corporate Tax Period

How to submit the tax registration application?

With your TRN and required documents in hand, you are now ready to submit your tax registration application. This can be done online through the FTA’s portal.

The application will require you to provide details about your business, including its activities, turnover, and any exemptions or special considerations that may apply. Make sure to double-check all information before submitting the application to avoid any delays or complications.

What next?

Once your application has been submitted, it will undergo a review process by the FTA. This may take some time, so it’s important to be patient. During the review process, the FTA will verify the information provided and may request additional documents or clarification if needed. It’s crucial to respond promptly to any requests from the FTA to ensure a smooth approval process.

Once your application has been approved, you will be issued a tax registration certificate.

This certificate confirms that your business is now registered for corporate tax in the UAE. With the certificate in hand, you can proceed with paying your corporate taxes.

How to file the Corporate Tax?

The FTA requires that businesses be allowed to file a single consolidated tax return, rather than requiring them to file multiple returns. This consolidated return must be filed within nine months of the end of each relevant tax period.

Access EmaraTax here.

While the registration process may seem straightforward, there are some common mistakes that businesses often make. By being aware of these mistakes, you can avoid unnecessary delays and complications.

Some common mistakes to avoid include:

• Incomplete or inaccurate information: Make sure to provide all required information accurately and completely.
• Missing deadlines: Be aware of the deadlines for submitting your application and any requested documents. Missing deadlines can result in delays or even penalties.
• Lack of understanding: It’s crucial to have a clear understanding of your tax obligations and the registration process. Consult with a tax professional if needed to ensure compliance.

By avoiding these common mistakes, you can streamline the registration process and ensure a smooth experience.