Taxation

Corporate Tax Registration in the UAE

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(Inclusive of Taxes)

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Service Description
   
Corporate tax registration  
Corporate tax registration in the UAE involves registering a company with the Federal Tax Authority (FTA) to comply with the country's tax laws. As of June 2023, the UAE introduced a federal corporate tax on business profits, requiring companies to obtain a tax registration number.

Failing to register on time will lead for AED 10,000 penalty.		  
   
Corporate Tax Registration in the UAE
Required Documents
  1. Business License & Memorandum
  2. Email ID
  3. Colour passport copy of shareholders, general manager, director
  4. Mobile number
  5. Emirates ID copy of Shareholders, General manager (if applicable)
Corporate Tax Registration
$ 1,000/Service
Total Amount :
$ 1000
Submit Speak to an experter
Other Permit Required throughout the Journey
         
Mandatory Requirements        
1. Who is Subject to Corporate Tax?

Taxable Persons Include:

a) UAE-incorporated companies
b) Foreign companies with a permanent establishment in the UAE
c) Free zone businesses (subject to specific conditions)
d) Individuals engaged in business activities requiring a license

Who is exempt?

a) Government entities & government-controlled entities
b) Qualifying public benefit organizations
c) Extractive businesses (oil & gas) and non-extractive natural resource businesses (taxed separately)		        
         
Corporate Tax Rates in the UAE        
Taxable Income Corporate Tax Rate      
Up to AED 375,000 0% (Exempt for Small Businesses)      
Above AED 375,000 9%      
Qualifying Free Zone Businesses 0% or 9% (based on activities)      
Large Multinational Companies (Revenues > €750 million) 15% (Under OECD Global Minimum Tax Rules)      
Small Business Relief Businesses with revenue below AED 3 million can opt for Small Business Relief, effectively paying 0% tax until 2026      
         
How is Taxable Income Calculated?

Taxable income is based on the accounting net profit reported in financial statements, with adjustments for tax purposes.

Deductions Allowed:

a) Business expenses related to taxable income
b) Interest expenses (subject to limits)
c) Depreciation & amortization
d) Qualifying R&D expenses

Non-Deductible Expenses:

a) Personal expenses
b) Fines & penalties
c) Dividends paid to shareholders		        
Free Zone Businesses & Corporate Tax

Free zone businesses can enjoy 0% corporate tax on "Qualifying Income", but they must:
a) Applicable for designated Freezones only
b) Maintain adequate substance in the UAE
c) Comply with transfer pricing rules
d) Avoid doing business with the UAE mainland (unless within tax regulations)
e) Business conducted outside the UAE

Free zone businesses that do not meet these conditions will be taxed at 9%.		        
Corporate Tax Compliance & Filing

Registration: All businesses must register with the Federal Tax Authority (FTA)

Filing Deadline: Within 9 months after the end of the financial year

Payment Deadline: Same as filing deadline

Record Keeping: Maintain financial records for 7 years

Penalties apply for non-compliance, including late filing and incorrect reporting.

        
Exemptions & Special Considerations

Small Business Relief
Businesses with revenue below AED 3 million can opt for Small Business Relief, effectively paying 0% tax until 2026.

Foreign Income & Double Taxation
Foreign branch profits: May be exempt if income is taxed abroad
Foreign tax credits: Businesses can claim a tax credit for taxes paid abroad		        
         
Corporate Tax vs. Other UAE Taxes        
Type of Tax Rate Applies to    
Corporate Tax 0% / 9% / 15% Business profits    
VAT 5% Goods & services    
Excise Tax Varies Tobacco, sugary drinks, etc.    
Customs Duty 5% Imports (some exemptions)    
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
  Document Compliance
  Business License & Memorandum (must not be expired).
  Colour passport copy of shareholders, general manager, director (must not be expired).
  Emirates ID copy of Shareholders, General manager (if applicable) (must not be expired).
  Mobile number  
  Email ID (Mobile Number and E-mail).
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     

Process & Time required

Task   Time period in days    
Tax Registration Companies subject to corporate tax must register with the relevant tax authorities in the UAE. 12 days    
Compliance and Reporting Corporate tax entities need to comply with Federal tax laws, regulations, and guidelines. 5 days    
Interaction with Tax Authorities Companies may need to interact with the tax authorities for various reasons, such as responding to queries, providing additional information, or participating in tax audits. 18 - 20 business days    
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         

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