What is Corporate Tax in UAE
Corporate Tax in the UAE is a federal tax levied on the net profits of businesses. Introduced to diversify the country’s revenue sources, it applies to companies exceeding a certain income threshold, with a standard rate of 9%.
Documents Required to Register Corporate Tax
To register for corporate tax, businesses must submit key documentation, which varies slightly for individuals and corporate entities.
Individuals
- Emirates ID
- Valid passport copy
- Trade licence copy
- Proof of income
- Contact details
Corporates or Entities
- Trade licence
- MOA (Memorandum of Association)
- Emirates ID and passport of authorised signatory
- Company contact and financial details
Steps to Register for Corporate Tax
1. Create an EmaraTax Account
Register for an EmaraTax account via the Federal Tax Authority (FTA) portal. You’ll need valid identification and company details to complete this initial step.
2. Log in and Access the Registration Tab
Once logged into your EmaraTax dashboard, access the “Corporate Tax” tab and select “Register” to begin your application process.
3. Fill Out the Application Form
Input company details, financial information, and attach the required documents. Ensure accuracy to prevent delays in processing.
4. Submit for Review
After verifying all entries and attachments, submit the form. The FTA will review the application and respond with an approval or request for clarification.
5. Receive Your Corporate Tax Registration Number
Once approved, you’ll receive a unique Tax Registration Number (TRN), marking the official registration of your business for corporate tax.
Corporate Tax Maintenance in the UAE After Registration
After registration, businesses must maintain proper financial records, file annual tax returns, and comply with FTA audit requirements. Non-compliance can lead to penalties.
Where Should You Register for Corporate Tax in UAE?
You can register online via the official EmaraTax portal. For professional help, MyBig4 offers expert corporate tax registration services in the UAE, ensuring a smooth and compliant process for individuals and entities alike.
FAQ
What is EmaraTax?
EmaraTax is the UAE’s official digital platform for managing all tax-related activities, including registration, filing, and payments.
What is qualifying income for Corporate Tax in UAE?
Qualifying income refers to earnings that meet exemption criteria, especially for Free Zone entities, including certain exports, inter-group transactions, and regulated activities.
Who should register for Corporate Tax in UAE?
All businesses operating in the UAE with a net profit exceeding AED 375,000 are required to register unless exempted.
How to file corporate tax in UAE?
Corporate tax returns must be filed annually through the EmaraTax portal, accompanied by audited financial statements and supporting documents.