As you may be aware, the UAE government has introduced the federal corporate tax law which has been in effect since 1st June 2023 has made a significant impact on the financial years of every business. Since corporate tax in the UAE follows the best global guidelines and standards issued by the Organisation of Cooperation and Economic Development (OECD), this makes it paramount for businesses to ensure compliance at all costs. Against a compliance-risk backdrop, it is fundamental for businesses to seek aid from Corporate Tax consultants in UAE.
What is Corporate Tax in UAE
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The UAE corporate tax or the business profits tax is a direct tax levied upon the profit or the net income generated by companies and other entities from their business activities. It applies to all businesses in the UAE that possess a trade license and operate within the Emirates, except for certain exemptions. It’s important to note that the taxable income is the net profit or income reported in the financial statements, which is adjusted for certain additions and reductions as per CT laws and regulations. That said, the standard CT rate is 9% which is charged on a taxable income exceeding AED 375,000 and goes upward accordingly.
✅ Profit Below AED 375,000? You Still Need to Register!
Contrary to common belief, the UAE Corporate Tax law mandates registration for ALL taxable persons, regardless of profit levels. A&A Associates ensures a smooth registration process, ensuring you stay on the right side of the law.
✅ Mandatory for ALL UAE Companies:
Whether you’re a start-up or an established enterprise, UAE Corporate Tax registration is not optional. A&A Associates specializes in guiding companies of all sizes through the mandatory registration process, ensuring compliance is stress-free.
✅ Exempt Persons – We’ve Got You Covered:
Certain exempt persons may receive requests from the Federal Tax Authority to register. A&A Associates provides expert assistance to exempt entities, making the registration process seamless and hassle-free.
✅ UAE Branches Simplified:
If your company has branches in the UAE, rest assured! UAE branches of domestic companies are extensions, not separate entities. No need for separate registration or filing – A&A Associates simplifies compliance for your branches.
All about Corporate Tax Registration in UAE
As per the UAE corporate tax law, all taxable persons in the country including Free Zone persons are obligated to register for the corporate tax and receive a tax registration number. Even exempt persons are required to register for the corporate tax but are exempted from paying the same.
Nevertheless, there are two conditions to register for corporate tax in UAE:
- Mandatory Registration: This applies to all taxable persons whose business is taxable under the CT policy and therefore are required to register for it. After the completion of registration, it is pivotal to obtain a tax registration number within a specified period.
- At the choice of FTA: This applies to certain individuals, namely exempt persons, autonomous partnerships, amongst others who are required to register upon the request of FTA, and later procure a tax registration number.
Taxable Persons will be able to electronically register for UAE Corporate Tax through the EmaraTax Portal (click [https://eservices.tax.gov.ae/#/Logon] for access). Further guidance on this will be provided in due course.
Resident Judicial Persons
UAE resident entities incorporated/established before 1 March 2024 | UAE resident entities incorporated/established on or after 1 March 2024 | ||
Month of License Issuance (regardless of the year of issuance)
| Deadline for submission | Category of juridical persons | Deadline for submission |
January or February | 31 May 2024 | Person that is incorporated, established or recognized under UAE laws, including free zone person | 3 months from the date of incorporation, establishment or recognition |
March or April | 30 June 2024 | ||
May | 31 July 2024 | ||
June | 31 August 2024 | ||
July | 30 September 2024 | Person that is incorporated, established or recognized under laws of foreign jurisdiction that is effectively managed and controlled in the UAE | 3 months from the end of the financial year of the person |
August or September | 31 October 2024 | ||
October or November | 30 November 2024 | ||
December | 31 December 2024 | ||
Where a person does not have a license at the effective date of the FTA Decision | 3 months from the effective date of the FTA Decision (i.e., by 31 May 2024) | ||
Non-Resident Judicial Persons
UAE resident entities incorporated / established before 1 March 2024 | UAE resident entities incorporated / established on or after 1 March 2024 | ||
Month of License Issuance (regardless of the year of issuance) | Deadline for submission | Category of juridical persons | Deadline for submission |
January or February | 31 May 2024 | Person that is incorporated, established or recognized under UAE laws, including free zone person | 3 months from the date of incorporation, establishment or recognition |
March or April | 30 June 2024 | ||
May | 31 July 2024 | ||
June | 31 August 2024 | ||
July | 30 September 2024 | Person that is incorporated, established or recognized under laws of foreign jurisdiction that is effectively managed and controlled in the UAE | 3 months from the end of the financial year of the person |
August or September | 31 October 2024 | ||
October or November | 30 November 2024 | ||
December | 31 December 2024 | ||
Where a person does not have a license at the effective date of the FTA Decision | 3 months from the effective date of the FTA Decision (i.e., by 31 May 2024) | ||
Natural Person
Category of natural persons | Deadline for submitting a Tax Registration application |
A resident person conducting a business or business activity during the 2024 Gregorian calendar year or subsequent years whose total turnover derived in a Gregorian calendar year exceeds the prescribed threshold | 31 March of the subsequent Gregorian calendar year |
A non-resident person conducting a business or business activity during the 2024 Gregorian calendar year or subsequent years whose total turnover derived in a Gregorian calendar year exceeds the prescribed threshold | 3 months from the date of meeting the requirements of being subject to tax |
A natural person will fall within the scope of Corporate Tax and thus be required to register for Corporate Tax purposes, where:
- he/she is a Resident Person;
- he/she is a Non-Resident Person with a Permanent Establishment in the UAE;
- he/she carries on a Business or Business Activity in respect of which he/she derives a total Turnover in excess of AED 1 million; and
- the Turnover is not derived from:
– Wage,
– Personal Investment, or
– Real Estate Investment. Each of the above listed concepts and requirements is explained in Section
Penalty
The Ministry stated that an administrative penalty of AED10,000 for late registration of UAE Corporate Tax will be imposed on businesses that do not submit their Corporate Tax registration applications within the timelines specified by the Federal Tax Authority.
A&A Associates, Top Corporate Tax Consultants in UAE
As an expert when it comes to registering for corporate tax in the UAE, our team can guide you through the process with 100% compliance and accuracy. You can be assured that our FTA-approved tax consultants are skilled at obtaining tax registration numbers and filing CT returns.