How to register for corporate tax in the UAE?
Corporate tax in the UAE changed the tax environment. Businesses must follow the new corporate tax scheme on June 1, 2023. To comply with UAE legislation, business owners, managers, and financial professionals must grasp the registration process.
UAE corporate taxation covers many entities. This comprises all UAE enterprises and commercial operations, foreign entities with a permanent establishment in the UAE, UAE-based firms, and free zone businesses that don’t have enough substance or do business with mainland UAE. Companies with taxable income over AED 375,000 pay 9% corporate tax, while those below this amount pay 0%.
Get a Tax Registration Number (TRN) from the FTA portal to start registration. First, register on the FTA portal and acquire necessary documents. Your trade licence, Certificate of Incorporation, Memorandum and Articles of Association, shareholder and manager passport copies, Emirates ID (for UAE residents), a recent company utility bill and bank account information are required.
Once you have your documents ready, you will open an FTA account and apply for a TRN. Get your trade licence details and ID documents for the authorized signatories on the platform. Register your company for taxes, after receiving your TRN. Log in to your FTA account, select corporate tax registration, and fill in business operations and income in detail.
Registered companies begin their corporate tax journey. Continuous compliance requires strong internal mechanisms. Establishing precise accounting and record-keeping methods to track your taxable income is necessary. A tax compliance calendar helps you meet deadlines, and teaching workers on tax regulations streamlines operations.
Corporate tax compliance requires time management. Companies must register within three months of starting business and file tax reports within nine months of the financial year. Financial records must be kept for seven years, and corporate structure changes must be disclosed within 20 days.
The registration process may provide obstacles, but solutions are available. Clearing your browser cache or switching browsers usually fixes portal issues. Take screenshots of error messages for FTA support and keep draft submissions. For documentation, authenticate papers and keep digital copies in acceptable formats. Your non-Arabic or English documents will need approved translations.
With planning and attention to detail, business tax registration is manageable. The key is understanding each rule, documenting it well, and complying consistently. These are the important steps to be followed to complete registration successfully while being in good faith with respect to the UAE tax regulations.
If you require corporate tax registration and compliance services, don’t hesitate to get in touch with Hallerbos’ team of experts. Our experts would work with you together to ensure your smooth transition in to the new tax regime of UAE and future compliance.