Mandatory Corporate Tax Registration in the UAE – Do You Know?

Who will be required to register for UAE corporate tax?

Mandatory corporate tax registration in the UAE is applicable to all taxable persons. They will be required to register for UAE corporate tax and obtain a corporate tax registration number.

Non-resident persons earning state-sourced income that do not have a permanent establishment or nexus in the UAE do not need to register.

This is because they will not have a corporate tax liability in the UAE and their home jurisdiction will have primary taxing rights.

Persons seeking to be exempt from corporate tax upon application to the Federal Tax Authority (for example,

an investment fund seeking to be treated as a qualifying investment fund) must first register with the Federal Tax Authority before they can make an application to be exempt from corporate tax.

Mandatory Corporate Tax Registration deadline

registration deadlines are structured based on the original month of incorporation for businesses, irrespective of the year.

Corporate tax rates

- A 0% corporate tax rate applies to taxable income up to AED 375,000

- A 9% corporate tax rate applies to taxable income over AED 375,000

- A 15% corporate tax rate applies to all multinational corporations subject to OECD Base Erosion and Profit-Sharing laws that belong within Pillar 2 of the BEPS 2.0 framework, i.e. combined worldwide revenues in excess of AED 3.15 billion.

Mandatory Corporate Tax Registration Requirements

- Copy of Trade License (must not be expired).

- Passport copy of the owners/partners/shareholders who own the license (must not be expired).

- Emirates ID of the owners/partners/shareholders who owns the license (must not be expired).

- Memorandum of Association (MOA) or Article of Association (AOA).

- Concerned person’s contact details (Mobile Number and email).

- Contact details of the company (complete address and P.O. Box).

- Corporate Tax Period.

Procedures and Steps

- Create an account on Emaratax portal by registering with your email ID and Phone number or login using your existing ID and password.

- Create your taxable person or select the relevant taxable person from the taxable person list

- You will see the option to register for Corporate Tax. Please select this option and complete your registration.

FAQs

When does Mandatory Corporate Tax Registration in the UAE is applicable?

All Taxable Persons must be registered before they file their first Corporate Tax Return.

The Federal Tax Authority may register a taxable person who is not otherwise registered, at their discretion.

Is there a registration threshold for UAE Corporate Tax?

There is no registration threshold for UAE Corporate Tax.

How do I register for UAE corporate Tax?

Taxable persons will be able to electronically register for UAE corporate tax through the EmaraTax Portal.

I am already registered for VAT purposes. Do I have to register for UAE corporate tax?

Yes. Taxable persons will be required to register for UAE corporate tax (and update their details, if required), even if they are already registered for VAT.

Will Mandatory Corporate Tax Registration in the UAE be required for exempt businesses or having no tax liability?

All taxable persons, including those with no corporate tax liability, will be required to register for corporate tax and obtain a corporate tax registration number.

Public and qualifying private pension funds and social security funds, qualifying investment funds, and juridical persons owned by certain exempt persons will also need to register for corporate tax before they can be exempt from corporate tax.

Qualifying public benefit entities that are listed in Cabinet Decision No. 37 of 2023 or any subsequent relevant decisions must also register for corporate tax.

Government entities, government-controlled entities, and extractive natural and non-extractive natural resource businesses that meet the relevant conditions in the corporate tax law must register for corporate tax if they conduct a taxable business.

Where a natural person conducts multiple businesses that are subject to corporate tax, does each of these businesses need to register / file corporate tax returns separately?

A natural person who conducts multiple taxable businesses will be considered as one single taxable person for UAE corporate tax purposes, irrespective of how many taxable businesses or business activities he/she undertakes.

This means that each natural person should register for corporate tax once and prepare a single corporate tax return, which includes the income and expenses from all of their taxable businesses.

Will a UAE company with several UAE branches be required to register each branch separately for UAE corporate tax?

No, because branches do not have a separate legal personality and are treated as one and the same person as their UAE ‘head office’.

The UAE company will need to include details of all of their UAE branches within the registration form.

Will individual partners in an incorporated partnership be required to register for corporate tax separately?

This depends on the status of each partner in the unincorporated partnership.

Natural persons who are partners in an incorporated partnership through which they are seen as conducting a taxable business will each be required to register for corporate tax individually.

The same is true for foreign legal entities where the activities performed by or through the incorporated partnership give rise to a permanent establishment in the UAE for the foreign partners.

Domestic legal entities and any other partner in an unincorporated partnership that is already registered for corporate tax purposes as a resident or non-resident person will not have an additional corporate tax registration requirement by virtue of being a partner in an unincorporated partnership.

If a resident juridical person’s revenue is below AED 3 million for a tax period, will it need to register for corporate tax?

Yes, any resident juridical person will need to register for corporate tax regardless of its level of revenue.

Under what circumstances can a business deregister for corporate tax?

A natural person or legal entity can apply to the Federal Tax Authority to deregister for corporate tax if they cease to conduct their business or cease to exist, respectively, provided all tax returns (including the tax return for the tax period up to and including the date of cessation) have been filed and all corporate tax and any administrative penalties due have been settled.