Corporate Tax Registration
Registration for Corporate Tax in UAE
As per the FTA's Federal Decree Law 47, The corporate tax regime demands every taxable person, which includes a Free Zone Person, requires to register for
Corporate Tax and get a Registration Number. The Federal Tax Authority also requested that even the Exempted Persons should register for Corporate Tax. Taxable Persons must file Corporate Tax returns for a Tax Period within 9 months from the end of a specific period. This deadline is normally applied in the payment of all the Corporate Taxes due in terms of the Tax Period the return is filed. Once the registration of corporate tax is completed, the tax persons have to pay a standard rate of Corporate Tax of 9% on taxable income above AED375,000, while taxable income up to AED375,000 is charged 0%.
How to register For UAE Corporate Tax?
The Federal Tax Authority has announced pre-registration of corporate tax in the EmaraTax platform. It is an online portal for taxpayers to handle all
the Tax registrations, returns, refunds, deregistration and payment in one platform. One can also make VAT Payments easily using the EmaraTax user-friendly portal.
Need for Corporate Tax Registration in UAE
The UAE Governance and the Ministry of Finance have come up with a tax structure and laws that could benefit the companies that pay corporate tax.
If you are a business who are subjected to corporate tax, you can have the following advantages, Staying compliant with the tax law and following up on changes Identifying malicious tax practices Following the world-class tax standards Corporate Tax registration is also important to minimize the after-tax revenue of the companies, thus return to shareholders. This not only impacts the individuals with direct shareholdings but also the indirect shareholders via private pensions or investment funds.
Who is exempt from UAE Corporate Tax?
Although the Federal Tax Authority requested that the Exempted Persons should register for Corporate Tax, the exempted business has to pay a 0% of corporate tax.
The employee’s salary will not be affected by Corporate Tax. However, if the individual gets income from activities conducted under a freelancing license, then he/she will be charged with the company tax Shares or similar assets resulted in dividends, capital gain, or any income earned by personal potential Investment in real estate is legal in the UAE until the investor has no business license Potential intra-group transactions or reorganizations will not be affected by the Corporate Tax Corporate Tax will not be charged on the foreign investor’s income from dividends, gains, royalties, and similar investment returns unless obtained through business or business activity