Simplifying Corporate Tax Registration in the UAE: A Guide by Profitrack Accounting

Key Features of UAE Corporate Tax

Tax Rates:

• 0% for taxable income up to AED 375,000
• 9% for taxable income exceeding AED 375,000
• Qualifying Free Zone Persons: 0% on qualifying income and 9% on non-qualifying income as specified in Cabinet Decision No. 55 of 2023

Scope:

• UAE-incorporated businesses: All juridical persons incorporated in the UAE.
• Foreign entities: Foreign juridical persons with effective management and control in the UAE, or those operating through a Permanent Establishment in the UAE.
• Natural persons: Individuals engaged in business activities within the UAE, either directly or through partnerships and sole proprietorships.
• Effective Date: For financial years starting on or after June 1, 2023. For example:
• A business with a financial year starting on July 1, 2023, is subject to Corporate Tax from July 1, 2023.
• A business with a financial year starting on January 1, 2023, becomes subject to Corporate Tax from January 1, 2024.

Steps for Corporate Tax Registration

1. Login to EmaraTax : You can login into the EmaraTax account using your login credentials or using UAE Pass. If you do not have an EmaraTax account, you can sign-up for an account by clicking the ‘sign up’ button.

2. EmaraTax Taxable Person Dashboard: After successful login, the Taxable Person list screen is displayed. You need to create a new Taxable Person if there are no Taxable Persons linked to your user profile.

3. Initiate Corporate Tax Registration: Select the Taxable Person from the list and click ‘View’ to open the dashboard. Click ‘Register’ on the Corporate Tax tile to initiate the Corporate Tax registration application.

4. Complete the Registration Form,  The application is divided into sections dealing with various aspects of the registration process:

• Entity Details Section: Select the Entity Type of your business and provide relevant details.
• Identification Details: Provide the main trade license details.
• Business Activities: Enter all business activity information associated with the trade license.
• Owner Details: Add the owners with 25% or more ownership.
• Contact Details: Enter the registered address details of the business.
• Authorized Signatory: Enter the Authorized Signatory details.

5. Review and Declaration: Review all the details entered and mark the checkbox to declare the correctness of the information provided. Click ‘Submit’ to complete the Corporate Tax Registration application.

6. Post Application Submission: After submission, a Reference Number is generated. The FTA will review the application and notify the applicant of approval, rejection, or a request for additional information.

How Profitrack Accounting Can Help

At Profitrack Accounting, we offer comprehensive support throughout the Corporate Tax registration process:

• Expert Guidance: Our knowledgeable team ensures you understand every step of the process.
• Accurate Documentation: We help you gather and submit all required documents, reducing the risk of errors and rejections.
• Ongoing Compliance: We provide continuous support to keep your business compliant with UAE tax regulations.

Conclusion

Registering for corporate tax in the UAE doesn’t have to be a stressful experience. With Profitrack Accounting by your side, you can navigate the process smoothly and focus on what you do best – running your business. Contact us today to learn more about how we can assist you with corporate tax registration and compliance.

Contact Profitrack Accounting for expert assistance in corporate tax registration and ensure your business remains compliant and strategically positioned for success.