How to Register for Corporation Tax in the UAE – Guide

The UAE has long been known for its business-friendly environment, attracting entrepreneurs and corporations from around the world. However, with the introduction of corporate tax, businesses operating in the UAE now need to ensure compliance by registering for corporate tax. This step-by-step guide will walk you through the process and help you understand what you need to know.

Step 1: Understand Corporate Tax in the UAE

Before registering, it’s important to grasp the basics of corporate tax in the UAE. As of June 2023, the UAE has implemented a corporate tax of 9% on businesses with taxable profits exceeding AED 375,000. Small businesses with profits below this threshold remain exempt, ensuring continued support for SMEs.

Step 2: Determine Your Business’s Tax Obligations

Not all entities are subject to corporate tax. Certain entities, such as government entities, public benefit organizations, and natural resource extraction businesses, are exempt. Additionally, companies operating in UAE Free Zones may continue to enjoy a 0% corporate tax rate on qualifying income, though they must still register.

Step 3: Gather Required Documents

To register, you’ll need to prepare the following documents:

• Trade license
• Certificate of incorporation
• Memorandum of Association (MOA) or Articles of Association (AOA)
• Passport copies of shareholders and directors
• Emirates ID copies (if applicable)
• Proof of business address
• Financial statements or records

Step 4: Create an Account on the Federal Tax Authority (FTA) Portal

The UAE Federal Tax Authority (FTA) oversees corporate tax registration. Visit the FTA website and create an account. This portal will be your main hub for tax-related activities.

Step 5: Complete the Corporate Tax Registration Form

Once logged in, fill out the corporate tax registration form. You’ll be asked to provide:

• Business name and activity
• Trade license number and issuance authority
• Contact details
• Financial year-end date

Ensure all details are accurate to avoid delays.

Step 6: Submit Your Application

After completing the form, upload the necessary documents and submit your application. The FTA typically takes a few days to review applications, though processing times may vary.

Step 7: Receive Your Tax Registration Number (TRN)

Once approved, you’ll receive a Tax Registration Number (TRN). This unique identifier confirms your registration and must be used on all tax-related documents and communications.

Step 8: Comply with Ongoing Tax Obligations

Registration is just the beginning. Businesses must now:

• Maintain accurate financial records
• File annual corporate tax returns
• Pay any due corporate taxes on time

Conclusion

Registering for corporate tax in the UAE is a straightforward process, but it requires attention to detail. By understanding the steps and preparing in advance, you can ensure smooth registration and ongoing compliance. Seeking assistance from corporate tax consultants can further simplify the process, ensuring your business remains compliant while focusing on growth. By staying proactive and informed, your business will be well-positioned to thrive in the evolving UAE business landscape.