Corporate Tax Registration in UAE : Everything You Need to Know
Corporate tax has been introduced in the UAE as part of the government’s efforts to align with international tax standards and diversify revenue sources. If you own a business in the UAE, understanding corporate tax registration is crucial to ensure compliance and avoid penalties.
This guide explains everything about Corporate Tax Registration in UAE , including who needs to register, the process, required documents, and key deadlines.
What is Corporate Tax in UAE?
Corporate tax is a direct tax imposed on the net profit of businesses operating in the UAE. The standard corporate tax rate in the UAE is 9%, with some exceptions for small businesses and free zone companies.
The UAE introduced corporate tax under Federal Decree-Law No. 47 of 2022, effective from June 1, 2023.
Who Needs to Register for Corporate Tax?
You need to register for corporate tax if you fall under any of these categories:
UAE-based companies and businesses earning taxable profits.
Free zone businesses (some may qualify for special tax incentives).
Foreign companies with a permanent establishment in the UAE.
Individuals conducting business in the UAE under a commercial license.
Who is Exempt?
Certain entities are exempt from corporate tax, including:
Government entities
Wholly government-owned businesses that carry out sovereign activities
Public benefit organizations approved by the UAE government
Qualifying free zone businesses (subject to conditions)
Businesses involved in the extraction of natural resources (already taxed separately)
Required Documents for Corporate Tax Registration
To register for corporate tax in the UAE, businesses must provide:
Copy of a valid Trade License
Passport copies of owners/partners/shareholders (valid and unexpired)
Emirates ID copies of owners/partners/shareholders (valid and unexpired)
Memorandum of Association (MOA) or Articles of Association (AOA)
Contact details of the responsible person (mobile number and email address)
Comprehensive company contact details (address and P.O. Box)
Corporate Tax Period details
Corporate Tax Registration and Deregistration
Businesses subject to corporate tax in the UAE must register with the Federal Tax Authority (FTA) and obtain a Tax Registration Number (TRN) within the stipulated timeframe.
If a company ceases operations or is liquidated, it must apply for deregistration within three months. To ensure a seamless registration or deregistration process, businesses can rely on expert tax advisors.
Corporate Tax Benefits and Impact
Benefits of Corporate Tax in UAE
Helps UAE comply with global tax standards.
Enhances business transparency and credibility.
Supports economic growth through regulated taxation.
Impact on Businesses
Companies must maintain proper accounting records.
Businesses should review their profit structure to calculate taxable income.
Free zone companies should check eligibility for tax exemptions.
Deadlines and Penalties
Deadline for Registration
Businesses must register before their first tax period begins. The deadline depends on your company’s financial year:
For businesses with a financial year starting June 1, 2023, corporate tax applies from June 1, 2024.
For businesses with a financial year starting January 1, 2024, corporate tax applies from January 1, 2025.
Penalties for Non-Compliance
Failure to register for corporate tax on time may result in:
Financial penalties
Legal consequences
Possible business restrictions
