Saturday, June 10, 2023

UAE Tax Registration - Open from Monday, May 15

 The Federal Tax Authority (FTA) has announced that the registration for Corporate Tax in the United Arab Emirates (UAE) will commence on Monday, May 15. This registration process will be facilitated through the EmaraTax digital tax services platform, specifically for Public Joint Stock Companies and Private Companies.

Background Information on Corporate Tax Law

The launch of the registration process aligns with Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses, commonly known as the Corporate Tax Law. According to this law, Taxable Persons, which include Public Joint Stock Companies and Private Companies, will be subject to Corporate Tax from the beginning of their first financial year that starts on or after June 1, 2023.

Mandatory Registration for Taxable Persons

To comply with the Corporate Tax Law, all Taxable Persons must register and obtain a Tax Registration Number for Corporate Tax purposes. The FTA has extended an invitation to all Public Joint Stock Companies and Private Companies resident in the UAE for Corporate Tax purposes to register with the FTA. However, it's important to note that Free Zone Persons will have access to Corporate Tax Registration at a later stage.

Registration for Other Categories of Taxable Persons

While the current registration process covers Public Joint Stock Companies and Private Companies, the FTA has stated that registration for other categories of Taxable Persons, such as natural persons conducting Business or Business Activity, will open at a later date. The specific details and timeline for registration in these categories will be determined by a Cabinet Decision.

Benefits of Early Corporate Tax Registration

The FTA emphasizes that early Corporate Tax registration allows companies and businesses sufficient time to fulfill their legal obligations. By registering early, entities can ensure compliance with the Corporate Tax Law and avoid any potential penalties or legal consequences.

Corporate Tax Registration Process for Legal Entities

Initially, the Corporate Tax registration process will be available to individual legal entities only. Entities interested in forming a Corporate Tax Group will need to register individually first. At a later date, these entities will have the opportunity to apply for the formation of a Corporate Tax Group.

Guide by the UAE Ministry of Finance

To assist individuals and entities with understanding the intricacies of the upcoming Corporate Tax system in the UAE, the Ministry of Finance has issued a comprehensive guide. This guide provides detailed information on all aspects of the Corporate Tax, enabling taxpayers to navigate the new regulations effectively.

By opening the registration process for Corporate Tax, the UAE aims to facilitate a smooth transition for businesses and ensure compliance with the Corporate Tax Law.