Are You Eligible for Corporate Tax Registration in the UAE?

As of 15 January 2024 by AccountAbility Team

Navigating through Corporate Tax may seem complex, but with AccountAbility, you’re on the right path. Whether you’re an individual, a mainland company, or a free zone business, Corporate Tax Registration is MANDATORY in the UAE.

Who is Eligible for Corporate Tax Registration in the UAE?

1. Legal Jurisdictions:

Legal entities with notable legal personalities such as LLCs, PSCs, PJSCs, LLPs, and others incorporated or recognized under UAE laws.
Free Zone Persons (“Taxable Persons”) incorporated or recognized under applicable legislation, including those in free zone.

2. Foreign Legal Entities:

Foreign legal entities and individuals who are engaged in regular trade or business activities and earn income in the UAE qualify as tax residents.

3. Free Zones:

Free zone businesses, with ongoing Corporate Tax incentives for compliant operations in the UAE’s mainland.

4. Mainland Businesses:

All businesses and individuals engaged in commercial activities under a commercial license in the UAE’s mainland.

5. Non-Residents:

Non-resident legal entities (juridical persons) are required to register for Corporate Tax and obtain a Tax Registration Number when the non-resident person has a:
- - Permanent establishment in the UAE
  - Nexus in the UAE

Natural persons are required to register and obtain a tax registration number when the non-resident natural person has a turnover attributable to their Permanent Establishment in the UAE and their income exceeds AED 1,000,000 within a Gregorian calendar year.

6. Residents:

Residents of the UAE, including natural persons, conducting business or commercial activities in the UAE.

What are the 5 Steps for Corporate Tax Registration in the UAE?

Know your tax liability.
Choose the right entity type.
Plan your business activities.
Prepare necessary documents.
Register for Corporate Tax.

Why Should You Register for Corporate Tax in the UAE?

As per the FTA’s Federal Degree Law 47, registering is crucial for:
1. Identifying and fixing any tricky tax practices.
2. Staying compliant with tax laws and global standards.
Avoiding hefty fines and penalties listed in Cabinet Decision No. (75) of 2023.
Advantageous to business owners as it boosts returns for shareholders

How Can AccountAbility Help You?

AccountAbility plays a vital role in corporate tax registration by assessing tax liability, guiding entity classification, and developing tax planning strategies. We assist in preparing and submitting required documentation, ensuring compliance with complex tax laws. We also act as intermediaries with tax authorities, provide ongoing compliance guidance, and prepare businesses for potential audits. Engaging with us helps streamline the registration process, minimize errors, and optimize the overall tax position of the business.

Contact us today for a FREE CONSULTATION and explore how our services can benefit your business.