Corporate Tax in UAE and its Registration Requirements
The UAE is known for its stringent rules and regulations, but it has a business-friendly environment and tax policies.
Recently, the UAE changed its corporate tax regulations, and you must
check them out. Whether you are an individual or a business entity, you need to
check this out if you are a taxable person.
If you have any questions, you can always contact us.
Understanding
Corporate Tax in UAE
If you have heard that the UAE is a tax-free country, you are right.
However, this changed in 2017 when the UAE government introduced the Federal
Decree-Law No. 7 of 2017 on Tax Procedures, laying the groundwork for
implementing Value Added Tax (VAT) in the country.
In recent developments, the UAE has introduced a federal corporate tax
that applies to all businesses and commercial activities, except for certain
exceptions.
Corporate
Tax Rates
Corporate tax in the UAE applies to entities and individuals based on
their income. The rates are shared below for different income slabs:
● Income up to AED 375000- 0% Corporate tax
● Income over AED 375000- 9% Corporate tax.
● In the case of multinational companies having
a combined worldwide revenue of more than AED 3.15 billion- 15% Corporate Tax.
Documents
Required for Corporate Tax Registration
You must submit the required documents to the UAE Federal Tax
Authority for corporate tax registration. Here is a list of the complete
documents:
● Copy of Trade Licence (Should be valid)
● Passport copy of owners, partners, or
shareholders who own the trade license.
● Emirates ID of owners, partners, or
shareholders who own the trade license.
● MOA and AOA, in the case of a company
● Contact details of the persons concerned.
● Contact details of the company.
● Corporate Tax period
If you are a business entity or an individual who falls under the
criteria, you must submit the documents mentioned above in time to avoid
penalties.
Due
Dates for Corporate Tax Registration
On March 1, the FTA announced the new due dates for corporate tax
registration. Check these out to avoid penalties.
|
License Issue Month- License Renewal Month |
Deadline |
|
January or February |
May 31, 2024 |
|
March or April |
June 30, 2024 |
|
May |
July 31, 2024 |
|
June |
August 31, 2024 |
|
July |
September 30, 2024 |
|
August or September |
October 30, 2024 |
|
October or November |
November 30, 2024 |
|
December |
December 31, 2024 |
Applicability
of Corporate Tax Registration
Apart from resident companies, the corporate tax registration rules
are applicable to:
● Any company, including those in the free zone,
established on or after March 1 must register within three months of its
establishment.
● A company that was originally incorporated
overseas but has its present control and management in the UAE should be
registered within three months of the end of its financial year.
● A company originally established outside the
UAE but now operating from the UAE should register within nine months of
commencing operations in the country.
● An overseas company relocating to the UAE on
or after March 1 must get itself registered within six months of their
relocation.
Corporate Tax Registration at Clever Corp
Do not let the commercial jargon confuse you. Many companies are
confused about whether or not they need to register for corporate tax after the
implementation of the new rules.
If you are also one of them, contact us at Clever Corp today. We excel
in handling all company and tax registrations in the UAE.
Allow us to help you with it. Contact us today!
Frequently
Asked Questions
Que: Who is covered under the FTA registration
deadlines?
Ans: Every resident company established or
incorporated in UAE must register for corporate tax before the deadlines.
Que: Is there any penalty for failing to register
for Corporate tax?
Ans: Yes, there is a penalty of up to AED 10000
if you do not register for corporate tax within the given timeframe based on
the date of business license issued.
Que: Can FTA ask exempt entities to register for
corporate tax?
Ans: The FTA can ask certain exempt entities to
register for corporate tax.
Original Source: https://theclevercorp.com/corporate-tax-in-uae-and-its-registration-requirements/
.jpg)
.png)
This is a very insightful post on Corporate Tax in UAE and its Registration Requirements. With the new tax regime, many businesses are still determining the best way to register and comply. Your explanation of thresholds and documentation makes the process easier to understand. Partnering with experienced tax advisors or corporate tax consultants in Dubai can significantly help companies avoid mistakes and ensure compliance. Thanks for sharing such useful information!
ReplyDelete