If you have a business paying corporation tax, you must register for it in the UAE. You’ll need to get a Corporation Tax Registration Number to do that. ECCURACY has experts who can help you with this process, including answering any questions about the documents you must provide.

The UAE recently declared that businesses will now be subject to a 9% corporation tax on their earnings if they make over AED 375,000.

Businesses need to understand critical administrative procedures to prepare for the upcoming corporate Tax in the UAE. This includes corporate tax registration and deregistration, submitting corporation tax reports, making payments, and providing necessary documents for corporate tax registration in the UAE.

Registration

To follow the rules set by the Federal Tax Authority, anyone who pays taxes as a business or individual in a Free Zone must register for Corporate Tax and receive a Registration Number. Even some people usually excused from taxes must also register for Corporate Tax. This is all required by Federal Decree Law 47 of 2022.

Companies must file their tax returns within a period of nine months after a specific tax period ends. This deadline also includes paying any outstanding corporate taxes owed for that period.

If someone is required to pay corporate taxes, they must register with the Federal Tax Authority in a certain way and within a specific timeframe. The government will provide them with the necessary details.

If you’re running a business or working for yourself, you might need to register for Corporate Tax and get a Tax Registration Number. The government requires this. When you become a Taxable Person, the Tax Authority must have your information on file for tax purposes.

After registering for corporation tax, businesses must pay a tax on their profits. The tax rate is usually 9% for earnings above a certain amount, AED 375,000. However, no tax is charged if the gain is less than AED 375,000.

You may be eligible for a lower tax rate if your Company operates in a free zone. You’ll only have to pay 9% on certain types of income ( non-qualifying income profit), while other types of income (qualifying income) won’t be taxed. However, specific needs must be met to qualify for this preferential tax treatment, whereas qualifying income will be taxed at 0 %.

Documents Required

If you’re running a business in the UAE, you must know you’ll need to provide some paperwork to register for Corporate Tax. Luckily, this can all be done online. The documents you’ll need to gather are:

Copy of Trade License

Companies are required to show a valid and unexpired document called a trade license. This document is necessary for a company to conduct its business legally.

Passport Copy of The Owner/Partners

To prove who is involved with a business, it’s essential to provide copies of valid passports for the owner or partners listed on the trade license. This shows their identity and helps ensure everything is above board. Just make sure the passports aren’t expired!

Emirates ID of the Owner/Partners

To proceed, the owner or partners with the business license must provide a copy of their latest Emirates ID. The Emirates ID is a card that identifies people who live in the UAE and is recognised as an official form of identification.

Memorandum of Association or Power of Attorney

For businesses, it’s essential to provide either the Memorandum of Association (MOA) or the Power of Attorney (POA).

The MOA is a legal document that explains essential things about a Company, like its rules, goals, owners, and leaders.

A POA gives someone else the power to act on behalf of a company. It’s legal to allow someone else to make decisions and represent the Company when needed.

Authorised Person’s Contact Details

To register a company for taxes, you need to give the contact information of the person in charge. They will use this information to talk to the right person about the registration process. If required, you can have more than one person in charge. Just make sure their contact information is also provided.

Company Contact Details

To ensure we know where to find the Company and how to reach them, we must share their address, including any P.O. Box number. This section should also include their phone numbers, both mobile and landline.

Branch

If you have a local branch, please select yes. When registering, it’s essential to include information about any nearby units.

Knowing where a business is located is essential, just like having a license to operate it. This includes knowing what type of business it is and who runs it.

To register for corporate Tax in UAE, it is necessary to submit genuine and transparent documents. Using forged or outdated paperwork can lead to legal consequences and penalties. The required documents for corporate tax registration in UAE must be accurate and up-to-date.