Discover the Requirements for Corporate Tax Registration in UAE

If you have a business in the UAE, you know the requirements for corporate tax registration in uae, and also you don’t keep all the profits for yourself. Some goes to your employees’ salaries, some to the marketing efforts, and some to the local authorities.

Yes, the last one refers to Corporate Tax registration. In this post, we’ll cover everything you need to know about the requirements for corporate tax registration and where to find the best consulting services to facilitate the registration process. 

Who Is Required to Register for Corporate Tax in the UAE?

That’s the most common question asked in the world of Corporate Tax, and the answer is simple: Every person under the UAE Corporate Tax law must register and get a Corporate Tax Registration Number UAE.

Some entities think they only need to register if their annual turnover exceeds a certain threshold. It’s more complicated than that. Let’s go over the details to help you understand.

UAE Companies

Standard companies that conduct their business in the UAE, and whose annual turnover is over AED 1 million, must register for the Corporate Tax. In fact, these companies make up the largest group that registers for Corporate Tax.

That’s the only way for a business to show the local authorities that they exist and that they’re legit. It’s also how these businesses establish a tax identity and subject themselves to the laws of the UAE. In other words, it’s the only way for a business to prove its legitimacy.

Free Zone Companies

Yes, even free zone companies must register for the Corporate Tax. If you’re not familiar with the term, free zone companies are entities that operate in areas that the emirates built to attract foreign investors.

These lands have unique benefits, like 100% foreign ownership, simpler setup procedures, and more. Unfortunately, that leads the companies operating on these lands to think that they don’t need to register for Corporate Tax. They have to know the requirements for corporate tax registration in uae.

That’s not the case, though. Yes, free zone companies don’t operate in the mainland of the UAE, but they still need to register. After all, the authorities must check if these companies actually meet the necessary requirements to enjoy the 0% Corporate Tax rate on Qualifying Income.

Foreign Business 

The fact that foreign businesses are required to apply for Corporate Tax might sound weird. Well, that law doesn’t apply to all foreign businesses. Only the ones with a consistent, long-term presence in the UAE mainland have to register. 

What Are the Requirements for Corporate Tax Registration in UAE?

Now that you understand who’s required to register for corporate tax, it’s time to understand the requirements for corporate tax registration in uae. By “requirements,” we mean the conditions your business must meet to register for Corporate Tax:

• Businesses with an annual turnover of up to AED 1 million get a 0% Corporate Tax rate. This also applies to the annual income of free zone companies.  
• Businesses with an annual turnover of more than AED 1 million get a 9% Corporate Tax rate. That also includes non-qualifying income that free-zone companies earn.

Legal and Commercial Documents for UAE Tax Registration

If you’re registering for Corporate Tax in Dubai, you need to make sure you have the necessary paperwork to avoid any unnecessary delays. Here’s what you need:

• Trade license copy.
• License holder’s passport copies (must be active).
• License holder’s Emirates ID (must be active).
• Power of Attorney or memorandum of association. 
• Contact details of the concerned person, like a phone number or an email.
• Contact details of the company.
• An annual financial audit report of the company’s business.

Common Mistakes to Avoid During Registration 

Before we delve into the nuances of Corporate Tax registration in the UAE, we want to cover the most common mistakes you need to avoid. That way, you’ll ensure a quick, seamless process with no unwanted hiccups:

• Delaying registration: Delaying registration is a quick and easy way to receive a penalty. So, always make sure you register on time.
• Using expired legal documents: Any mismatching information in any of the paperwork you present will cause delays.
• Wrongly identifying tax status: Always be vigilant of whether your business is in the mainland or a free zone to understand your tax and exemption status.
• Ignoring updates from FTA: Stay updated with the latest FTA compliance regulations to make sure your legal status is as solid as possible.
• Not seeking professional guidance: A lot of people get overwhelmed with the registration process. If that’s the case for you, don’t force it. You’ll end up doing more harm than good. Use our professional services to help seamlessly walk through the process.

Read more: Vat Fines and Penalties in UAE

Procedure for Corporate Tax Registration in UAE via EmaraTax

When you think of registering for Corporate Tax in the UAE, you probably imagine going to an office and delivering your paperwork in person. Well, that’s not the case.

The UAE has built a user-friendly platform called EmaraTax for all tax-related tasks. So, you can go through the entire process from the comfort of your home. Here are the steps:

• Create an account on EmaraTrac, ensuring you enter accurate company information.
• Fill out the registration form, entering your business’s type, details, and tax status.  
• Submit all the previously mentioned required documents.
• Review your information, submit your application, and wait for the confirmation of your registration.

Prepare the Required Documents with Alsun Tax Agency

The registration process on EmaraTax website might be easy, but collecting the required documents for the registration isn’t something everyone can do. Remember, that’s a legal proceeding. If it’s too complex, there’s no shame in hiring an expert.

That’s where Alsun Tax Agency comes in. With a qualified team of tax consultants, tax agent in UAE, and accounting professionals, we ensure you’re staying compliant with tax regulations.

Conclusion

Now you know all the requirements for corporate tax registration in UAE. Ultimately, the process isn’t as simple as it sounds, and you should hire professional help to avoid legal trouble.

For that purpose, Alsun Tax Agency is your best bet. So, reach out to us, tell us all the necessary details about your business, and we’ll make the registration process as simple as possible.

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