Corporate Tax Registration:
All Taxable Persons should register for Corporate Tax with the FTA and obtain a Tax Registration Number for Corporate Tax. In broad terms, Corporate Tax applies to:
- Juridical persons (such as corporations) that are incorporated in the UAE or foreign juridical persons that are effectively managed and controlled in the UAE.
- Non-resident juridical persons (foreign juridical entities) that have a Permanent Establishment in the UAE.
- Non-Resident Persons deriving State Sourced Income. (Can choose not to register).
- Non-resident juridical persons that have a ‘nexus’ in the UAE by virtue of earning income from Immovable Property in the UAE.
- Natural persons who conduct Business or Business Activities in the UAE and have a Turnover of over AED 1,000,000 per Gregorian calendar year from such Business or Business Activities
Following Persons are not Required to register for Corporate tax.
- A Government Entity.
- A Government Controlled Entity
- A Person engaged in an Extractive Business.
- A Person engaged in a Non-Extractive Natural Resource Business.
- A Non-Resident Person deriving State Sourced Income and not having a P.E in the State.
- Resident/Non Resident Natural Person carrying Business Activity with Turnover less than 1 MN.
Corporate Tax Deregistration:
- If a Corporate Tax registered Person ceases to be a Taxable Person for any reason, they should file a Tax Deregistration application with the FTA.
- Tax Deregistration will only take place when all Corporate Tax liabilities and penalties due have been paid, and all Tax Returns have been filed.
- If the Tax Deregistration application is approved by the FTA, the FTA will deregister the Person for Corporate Tax purposes, with effect from the date of cessation of the Business or from such other date as may be determined by the FTA.
- Failure to submit a deregistration application within 3 months of the date the entity ceases to exist, cessation of the Business, dissolution, liquidation or otherwise, will result in a penalty of AED 1,000, and a further AED 1,000 on the same date monthly, up to a maximum of AED 10,000.
- Where a Person does not comply with the Tax Deregistration requirements, the FTA may, at its discretion and based on the information available to it, deregister the Taxable Person. This Tax Deregistration will be effective from the later of the last day of the Tax Period that the Taxable Person satisfied their Corporate Tax obligations or the date the Taxable Person ceases to exist.
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