The introduction of Corporate Tax (CT) in the United Arab Emirates is a significant development in the Emirates’ economic landscape. Businesses in Dubai, Sharjah, and the Emirates must comply with Corporate Tax Registration with the Federal Tax Authority, including both experienced and new business owners. In order to be complaint, it is a must to know about the CT registration deadline, how to file for Corporate Tax, including payment fees, and any documents you will need. 

Who Should Register for Corporate Tax in UAE? 

You are required to register for Corporate Tax in the UAE if: 

• Your taxable income exceeds AED 375,000 in one financial year. 

• You do business as a mainland company or a Free Zone company, regardless of whether you’re able to benefit from a 0% rate. 

• You are a foreign group with PE in the UAE. 

• You’re an individual doing business in UAE (freelancers, sole proprietors) with an annual turnover of more than AED 1 million. 

• You are a registered branch of a foreign company in the UAE, earning money in the mainland UAE. 

Some entities, including government entities, public benefit entities, and limited investment and pension funds may be exempt, but they still must apply for an exemption through the FTA. 

CT Registration Deadline & Filing Deadline Check 

The FTA released separate CT registration deadlines by the licensing date. If you fail to register on time, the penalties are quite rigid. To determine your company’s deadline, you need to do a CT filing deadline check via the FTA online portal or contact an accredited tax agent. 

Key points: 

• Deadlines for registration are based upon the year the trade license was issued. 

• Any late filing dates for CT returns are normally due 9 months after the end of the accounting period. 

• If this is done late, AED 10,000 fines can likely be imposed. 

Documents Required for Corporate Tax Registration in UAE 

Before starting your UAE corporate tax registration process, it is crucial to ensure your business is ready to apply and has all the necessary documentation. Having your documentation ready will help ensure a smooth application process, and it will allow you to avoid delays in processing time and penalties.  

Here is the list of documents to have in place before you begin your application process:  

• Trade License – Your business must be legally registered in the UAE, with a valid listing that is currently active. 

• Financial Statements – To determine tax eligibility and assess taxable income, it is necessary to prepare recent financial statements detailing income, expenses, and profit details.  

• Authorized Signatories –To handle tax application matters, identify the individual acting on your company’s behalf and prepare a Power of Attorney if someone else is completing the registration.  

• Emirates ID and Passport Copies – You will need to submit a valid identification document for all owners, partners, or directors who are related to the business. 

•  Business Contact information – The requester is required to provide accurate and up-to-date business contact information such as registered business address, phone number, and email ID. 

• Entity type clarification– What type of entity in the UAE are you- a mainland, free zone, branch or a foreign entity, it affects your eligibility, tax rates, exemption of liability. 

• VAT registration status (if applicable): If your business is already VAT registered, have your Tax Registration Number (TRN) available.  

How to Register and File: Corporate Tax in UAE 

Businesses can register corporate tax in UAE online through the FTA’s Emara Tax portal. Here is how you register for Corporate Tax through your portal: 

1. Create an FTA account or log into your existing account. Sign up for Emara Tax using your email and mobile number and update your business profile with Corporate Tax if you already have a VAT account with the FTA. 
2. Select or create a taxable person profile. Once you have logged in, you will need to create a new ‘Taxable Person’ profile for your business (or select an existing profile, in the case that you already have a VAT-registered profile). This profile will link all your obligations related to tax including VAT and Corporate Tax. 
3. File out the Corporate Tax Registration form with accurate details such as entity type, financial year, business trade license, etc.  
4. Upload the required documents (as mentioned above).  
5. Pay the applicable corporate tax registration fees in UAE, if any. 
6. The FTA reviews applications may request additional information and approvals. Approval results in a Corporate Tax Registration Certificate and Tax Registration Number; processing time varies. 

For companies based outside Dubai, like Sharjah, the process remains the same; simply select your Emirate (e.g., register corporate tax in UAE Sharjah) during registration. 

After registration, businesses must file annual CT returns online through the same portal. 

Corporate Tax Registration Services by CBM Consultants: 

At CBM Consultants, our seasoned tax advisors specialize in Corporate Tax registration, leveraging their extensive expertise to ensure a smooth process. We are well-versed in the latest tax changes and provide proactive preparation to minimize costs and stress.  

With our expertise and guidance, you stay updated on all aspects of Corporate Tax Registration and filings, ensuring compliance and avoiding penalties. Trust us for seamless and effective tax handling. 

Conclusion: 

The introduction of corporate tax is transforming the way businesses plan, operate and report in the UAE. Early registration and timely filing will not only protect you from overall penalties but will also create a good compliance history with the Federal Tax Authority. Be prepared: review your CT registration deadlines, prepare your documentation, and register corporate tax in UAE online ahead of time. If you’re unsure, consider consulting a certified tax advisor to help you understand the specific details of and obligations under UAE corporate tax laws.