Corporate tax registration in UAE

Registration is carried out through the EmaraTax Portal. Detailed instructions are available on the FTA website. This must be done before filing the first corporate tax return. The deadline for filing a corporate tax return is within 9 months from the end of the relevant tax period. The penalty for failing to meet registration deadlines is AED 10,000.

Companies are required to register for corporate tax purposes during 2024. Below is a table showing the registration deadlines:

To register, you'll need to create an account on the EmaraTax portal or use your existing tax authority account. This service is provided free of charge. The tax authority takes up to 20 business days to complete registration applications. During registration, the following documents are required:

1. Copy of the passport of the license owner/shareholders of the company.
2. Emirates ID of the license owner/shareholders of the company.
3. Copy of the valid trade license.
4. Company contact details (email, phone).
5. Contact details of authorized representatives (email, phone).
6. Memorandum and articles of association.
7. Certificate of Incorporation.

Mainland Companies

If a company's profit is below AED 375,000 for the tax period, the tax rate is 0%, but tax returns must still be filed within the specified deadlines. A 9% corporate tax is levied on profits exceeding AED 375,000.

Free Zone Companies

Previously, free zones were exempt from taxes. With the new law, companies and individuals conducting business under a license in free zones are also subject to corporate tax, but there are special conditions:

•  The tax rate remains 0% for companies earning profits from qualifying activities.
•  Profits from other sources are taxed at a rate of 9%.

Companies whose activities meet the criteria for Qualifying Activities are called Qualifying Free Zone Persons (QFZP). The criteria are as follows:

•  Their activities must be among the specific types of qualifying activities designated by the government.
•  They must operate within the free zone.
•  They must own a sufficient amount of assets.
•  They must have an adequate number of qualified employees.
•  They must demonstrate a sufficient level of operational expenses.

Natural persons registered as freelancers in free zones and conducting business under a commercial license do not pay corporate tax if their annual turnover is less than AED 1 mln. When this threshold is exceeded a freelancer is liable to register for corporate tax and file annual tax returns. Also he or she shall pay 9% on profits that exceed AED 375,000. Freelancers can opt for the favorable tax regime called Small Business Relief, under which, if revenue for the tax period does not exceed AED 3 million, the freelancer is exempt from paying corporate tax. The Small Business Relief tax regime is effective until December 31, 2026.

Even persons exempt from corporate tax must register for CT purposes:

•  Federal and federal governments, as well as their departments, authorities, and other government institutions.
•  State-owned enterprises.
•  Companies engaged in natural resources exploration in the UAE.
•  Public benefit organizations.
•  Investment funds.
•  Public and private pension funds and social security funds.

Foreign companies registered in offshore zones in the UAE are not allowed to conduct commercial activities within the Emirates or have a permanent presence (rent an office), therefore they do not pay corporate tax and are not required to register with the tax authority.

If a company has branches, it registers for corporate tax purposes as a single legal entity, listing all its divisions on the form. Separate registration for each branch is not required.

If an individual conducts multiple types of taxable business activities, they are considered a single taxpayer for corporate tax purposes. In this case, a single tax return is filed, detailing income and expenses for all types of business.

All companies registered for corporate tax purposes are required to keep accounting records and submit financial statements annually.

Financial statements are prepared in accordance with International Financial Reporting Standards (IFRS). Taxable income is the net profit for the tax period adjusted for certain items according to the corporate tax law.

Companies registered for corporate tax purposes must maintain proper accounting records to substantiate all sources of income and file tax returns without errors. Therefore, it's best to seek advice from tax specialists and engage professional accounting and bookkeeping services in Dubai.

If a taxable person is already registered for VAT purposes, it is also required to register separately for corporate tax purposes. One does not exclude the other. Each tax regime has its own rules.

We provide the following services related to registration for corporate tax in the UAE:

•  Registration with UAE tax authority.
•  Registration on the EmaraTax portal.
•  Corporate tax registration.
•  VAT registration.
•  Obtaining a taxpayer registration number.
•  Filing tax returns.
•  Accounting and bookkeeping services.
•  Preparation of financial statements according to IFRS.
•  VAT management and submission of quarterly VAT reports.

Emirabiz is a team of experienced tax experts, accountants, lawyers, and business consultants with over 10 years of experience working with businesses in the UAE. If you or your company need services for corporate tax or VAT registration, business accounting and bookkeeping services, or have any questions, feel free to contact us!