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Post By: admin May 15 2023

Federal Tax Authority Opens Pre-Registration for Corporate Tax

The UAE is renowned for its tax-free regime, which has resulted in an influx of entrepreneurs and businesspersons from around the globe looking to establish their businesses in Dubai. However, starting from or after June 1, 2023, a new Federal Corporate Tax will be imposed on business enterprises based on their net incomes. To assist businesses, the UAE's Federal Tax Authority (FTA) is initiating pre-registration of corporate tax through the EmaraTax platform. Eligible UAE-based businesses will receive invitations to register from the FTA via email or SMS during the early registration period from January 2023 to May 2023. This will provide registered members and businesses with digital tax services, making tax compliance more accessible and convenient.

Points to be Considered for Pre-Registration for UAE Corporate Tax

The UAE's Federal Tax Authority (FTA) has announced the early registration for corporate tax through the EmaraTax platform. FTA's pre-registration of corporate tax will ensure digital tax services are catered to registered members and businesses. Given below are the points to consider during the preregistration of UAE corporate tax.

You can also read: Corporate Tax Requirements for Business Branches in UAE 

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EmaraTax Platform

EmaraTax is the UAE’s digital tax services platform that gives users access to digital services for registration, return filing, tax payment, and refund requests. The launch of EmaraTax was a significant advancement and a key turning point in its ambitious endeavor to become the most prominent digital authority in the tax sector, representing an enormous leap toward improved taxation in the UAE.

Steps to Register for UAE Corporate Tax on the EmaraTax Platform

Upon receiving the email or SMS, companies can follow the below procedure to register for UAE Corporate Tax via the EmaraTax platform.

Step 1: Log In to EmaraTax and add a Taxable Person

Log in to EmaraTax via your login credentials or the UAE PASS and head to the user dashboard. From there, you'll see a list of your linked taxable persons. If this list is empty, simply click 'Create' to add the new taxable person.

Step 2: Click Start in Corporate Tax Registration Tab

In the dashboard, click 'Register' to commence the corporate tax registration application. The screen will then display all the guidelines and instructions. Click ‘Start’ once you read all the guidelines to initiate corporate tax registration.

Step 3: Choose your Entity Type 

Choose the entity type of your business from the entity list, and after completing all the mandatory fields, click ‘Next Step’ to continue the application.

Step 4: Enter Your Identification Information

Depending on your ‘Entity Type’, provide your main trade license details in the Identification Information Section.

Step 5: Add Your Business Activities

Enter all the business activity information related to your trade license by selecting ‘Add Business Activities’.

Step 6: Fill in the relevant details in the "Add Owners" Tab

Click ‘Add Owners’ and enter the details of the owners that have at least 25% ownership in the registered entity. Enter the owner information, trade license details, associated business activities, and owner’s list for each branch of your business. Click ‘Next Step’ after completing all the mandatory fields.

Step 7: Submit your contact information. 

Enter your business’s registered address details and click ‘Next Step’ after completing all the mandatory fields.

Step 8: Add an Authorized Signatory

Click ‘Add’ to provide the mandatory details of the Authorized Signatory. If required, you can add more than one Authorized Signatory. Click ‘Next Step’ to proceed to the Review and Declaration Section.

Step 9: Review and submit the application.

This section highlights the information you’ve entered in your application. After reviewing the information, mark the checkbox and click ‘Submit’.

Step 10: Wait for the Confirmation Email

Once your application is successfully submitted, you’ll receive a reference number via email, which will be handy for your future correspondence with the FTA.

Post Corporate Tax Registration Process

The FTA will review the application upon submission and let the petitioner know whether it has been approved, rejected, or needs more information.

  1. You'll receive an email if the FTA requires additional information to verify your application. 
  2. You will be notified of the FTA’s decision once they confirm the acceptance of your application.
  3. The dashboard will reflect the updated state of your application. On the homepage, you can always check the status of your application. 

Documents required for corporate tax registration in UAE

Businesses in the UAE should ensure corporate tax compliance by keeping financial and other records that explain the information outlined in the corporate tax return. Such papers should also be submitted to the Federal Tax Authority. (FTA). Entities exempt from UAE corporate tax will be expected to keep records in order for the FTA to determine their exempt status.

Businesses must be prepared to present the necessary documents in order to register for Corporate Tax in the UAE. The registration and payment of business taxes will be done online. The documents listed below may also be needed for Corporate Tax Registration in the UAE.

  • Trade License Copies (must not be expired).
  • Passport photocopy of the license's owner/partners (must not be expired).
  • License's owner/partner's Emirates ID (must not be expired).
  • Power of Attorney (or Memorandum of Association) (POA) 
  • Contact information (Mobile Number and Email).
  • Company contact information (complete address and P.O. Box).
  • Report on the Annual Financial Audit.

Corporate Tax Registration Services in UAE

With the implementation of FTA’s new preregistration of corporate tax, all taxable persons will be subject to corporate tax from 1 June 2023. The FTA will provide enough time for organizations and businesses to submit registration applications and fulfill their legal responsibilities. Companies and businesses with fiscal years beginning on June 1, 2023, will be given preference when registration begins. 

CDA Audit is a team of expert tax consultants who offer the finest business tax advisory and assessment services in the UAE. Our FTA-approved tax agents will ensure that you receive timely assistance with obtaining a tax registration number and filing your corporate tax returns. Additionally, we assist you with the preparation and submission of annual tax returns and also safeguard companies before the FTA in the event of audits or disputes.

The CDA Experts offer free consultations and round-the-clock customer assistance. Ask questions about taxes and take advantage of our high-quality services at an affordable rate right away.