As a leading provider of corporate tax services, Innovate ensures professional and timely corporate tax registration in the UAE to help businesses comply with the new UAE corporate tax regime. Understanding corporate tax law and its registration procedures is essential for all businesses operating in the UAE. Here is a comprehensive guide to corporate tax registration:
1. Background: The Ministry of Finance in the UAE introduced corporate tax in 2022, with full implementation scheduled for June 2023. This will impact the financial years of companies and businesses operating in the UAE.
2. Corporate Tax Advisory Services: Audit firms in Dubai and tax consultants in the UAE have begun offering Corporate Tax Advisory and Implementation Services to assist businesses in navigating the new tax regime. These services aim to ensure compliance with global best practices and regulations set forth by the OECD (Organization for Economic Co-operation and Development), thereby minimizing the risk of non-compliance.
3. Understanding Corporate Tax: Corporate tax is a tax imposed on the profits earned by companies and businesses operating in the UAE. It is calculated based on the taxable income generated during a specific tax period.
4. Registration Process: Businesses are required to register for corporate tax with the relevant authorities in the UAE. The registration process involves submitting necessary documents and information, including details of the company's operations, financial records, and other relevant information.
5. Compliance Requirements: Once registered for corporate tax, businesses must comply with the regulations and requirements set forth by the UAE tax authorities. This includes filing accurate tax returns, maintaining proper accounting records, and adhering to deadlines for tax payment.
6. Benefits of Corporate Tax Services: Engaging professional corporate tax services, such as those offered by Innovate, can provide businesses with numerous benefits, including accurate tax calculations, timely compliance with regulations, and expert guidance on tax planning strategies to minimize tax liabilities.
By following these guidelines and availing of professional corporate tax services, businesses can ensure smooth registration and compliance with the new corporate tax regime in the UAE.
Registration for Corporate Tax in UAE
According to the Federal Tax Authority's Federal Decree Law 47, the corporate tax regime mandates that every taxable person, including Free Zone Persons, must register for Corporate Tax and obtain a Registration Number. Even exempted persons are required to register for Corporate Tax.
Taxable persons are required to file Corporate Tax returns for a Tax Period within 9 months from the end of the specific period. This deadline applies to the payment of all Corporate Taxes due for the Tax Period in which the return is filed.
In cases excluded as declared by the Minister, a Taxable Person must register for Corporate Tax with the Federal Tax Authority in a specific format within a timeline specified by the authority.
The Authority requires Taxable Persons or Independent Partnerships to register for Corporate Tax and obtain a Tax Registration Number. The Tax Authority should provide a unique judgment for Corporate Tax Registration from the day an individual becomes a Taxable Person.
Once the registration of corporate tax is completed, taxable persons must pay a standard rate of Corporate Tax of 9% on taxable income above AED 375,000, while taxable income up to AED 375,000 is charged at 0%.
How to register For UAE Corporate Tax?
The Federal Tax Authority has announced pre-registration for corporate tax on the EmaraTax platform. EmaraTax is an online portal designed for taxpayers to manage all tax registrations, returns, refunds, deregistrations, and payments in one convenient platform. Additionally, EmaraTax offers a user-friendly interface for making VAT payments.
To access EmaraTax, you can either create a new account or migrate your existing FTA account. Here's a simple guide for EmaraTax login:
1. Visit the EmaraTax website.
2. Click on the "Login" or "Sign In" button.
3. If you already have an EmaraTax account, enter your username and password in the provided fields and click "Login."
4. If you're new to EmaraTax, click on the "Create Account" or "Register" button.
5. Follow the on-screen instructions to complete the registration process, which may include providing personal and business information, verifying your identity, and creating login credentials.
6. Once your account is created or migrated, log in to EmaraTax using your username and password.
7. Navigate to the corporate tax section and proceed with the pre-registration process as instructed.
8. Ensure that you submit all the required documents for corporate tax registration and complete the registration successfully.
By following this guide, you can easily access EmaraTax and complete the pre-registration process for corporate tax in the UAE.
Who should register for Corporate Tax?
Every taxable person, including Free Zone entities, is required to register for Corporate Tax and obtain a Registration Number in accordance with UAE law. Corporate Tax registration is mandatory for businesses meeting certain criteria, while others have the option to register at the discretion of the Federal Tax Authority (FTA).
Under the Corporate Tax policy in the UAE, registration conditions include:
1. Mandatory Registration: Businesses meeting specific criteria outlined by the FTA are required to register for Corporate Tax.
2. Registration at the Choice of FTA: Certain individuals or entities may be required to register for Corporate Tax based on the discretion of the FTA, even if they do not meet the mandatory registration criteria.
If your business is subject to Corporate Tax, it is essential to apply for registration and obtain a Tax Registration Number within the specified timeframe. Tax consultants at BMS Auditing provide assistance to businesses throughout the Corporate Tax registration process, ensuring compliance with all regulatory requirements.
The FTA may request registration under the Corporate Tax policy for individuals such as exempt persons, autonomous partnerships, and others, and require them to obtain a Tax Registration Number accordingly.
Corporate Tax Registration Services
Innovate Accounting boasts a team of highly qualified and experienced tax consultants who specialize in Corporate Tax registration. With their extensive expertise, our tax advisors provide top-notch services to guide businesses through the registration process for Corporate Tax.
Our team is well-versed in the significant changes brought about by the implementation of Corporate Tax. By preparing early for corporate tax compliance, businesses can minimize costs and alleviate stress on their teams. With the wealth of knowledge and experience possessed by our tax consultants, clients can expect a seamless and efficient transformation process.
At Innovate, we provide ongoing support and updates on Corporate Tax Registration, ensuring that businesses remain compliant with regulations and avoid fines and penalties. Our goal is to assist clients in navigating the complexities of Corporate Tax requirements, allowing them to focus on their core operations with peace of mind.
