How to register for corporate tax in UAE through EmaraTax?

Businesses in the UAE with annual taxable income exceeding AED 375,000 must register for corporate tax. The corporate tax registration process in UAE on EmaraTax involves determining your legal business structure, choosing a trade name, obtaining the necessary licenses and approvals, and applying for a Tax registration number (TRN). After, file and pay the taxes based on the regulations set by the UAE government. Learn how to register for corporate tax in UAE through the EmaraTax portal with a step-by-step process in this article.

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What is a Corporate Tax Registration?

Corporate Tax Registration in the UAE is the process by which businesses register with the Federal Tax Authority (FTA) to comply with the corporate tax regime. Effective from June 1, 2023, corporate tax applies to the net income or profit of businesses operating in the UAE. Registration is mandatory for companies earning above the exempted income threshold, ensuring they adhere to tax regulations, file returns, and pay applicable taxes. The process involves obtaining a Tax Registration Number (TRN), essential for reporting and compliance purposes.

Documents Required for Corporate Tax Registration in UAE

Here is the list of documents typically required to apply for corporate tax registration in UAE,

• Trade License
• Certificate of Incorporation
• Memorandum of Association (MOA) / Articles of Association (AOA)
• Emirates ID (Optional)
• Passport Copies
• Contact Information (Mail ID and Phone number)

Steps to register for corporate tax in EmaraTax portal

EmaraTax is an online platform launched by the United Arab Emirates Federal Tax Authority (FTA) to streamline tax administration in the country. It allows taxpayers to register, file tax returns, make payments, and claim refunds electronically. This user-friendly system simplifies tax obligations and improves communication between the FTA and taxpayers. We have given below the step-by-step procedure to register for corporate tax in UAE using the EmaraTax portal.

Step 1: Login and Access Registration

• Log in to EmaraTax using your credentials or UAE PASS.
• In the dashboard, if no Taxable Persons are listed, click "Create" to add your business as a new taxable person.
• Click 'Register' under the Corporate Tax tile to initiate registration.
• Read the registration guidelines and instructions, then confirm by clicking the checkbox.

Step 2: Begin Registration Application

• Click 'Start' to begin the application. The progress bar will show the remaining sections.
• Complete all mandatory fields in each section before proceeding. Optional fields are clearly marked.

Step 3: Entity Details

• Select your business Entity Type (e.g., UAE Public Joint Stock Company, UAE Private Company).
• The system will display relevant input fields based on your chosen entity.

Step 4: Saving Your Progress

• Click 'Save as Draft' to save a partially completed application and resume later.

Step 5: Identification Details

• Once mandatory fields are completed in the previous section, click 'Next Step' to proceed.
• Enter your main trade license details based on your chosen Entity Type.

Step 6: Business Activities

• Click 'Add Business Activities' to include all activities linked to your trade license.
• Fill in the mandatory business activity details and click 'Add'.
• Upon adding all relevant details, an activation code will be displayed.

Step 7: Add Owners

• Click "Add Owners" to enter details of owners with at least 25% ownership in the business.
• Enter each owner's details and click 'Add'.

Step 8: Branch Details (Optional)

• If your business has branches, select 'Yes' and add details for each branch.
• Provide trade license details, related business activities, and owner information for each branch.
• Note: Registration happens under the Head Office name, so only one registration is required.

Step 9: Contact Details

• After completing branch details (if applicable), click 'Next Step' to proceed.
• Enter the details of your registered business address.
• Do not include other company addresses or your accountant's address.
• If you have multiple addresses, provide the location where most business activities occur.
• Foreign businesses must appoint a UAE tax agent and provide their details here.

Step 10: Authorized Signatory

• Click 'Next Step' to proceed and enter details of the Authorized Signatory.
• Click 'Add Authorized Signatory' and provide their relevant information.
• Legal persons may need to upload evidence of authorization (e.g., Power of Attorney, Memorandum of Association).
• You can add multiple Authorized Signatories if necessary.

Step 11: Review and Submit

• Click 'Next Step' to proceed to the 'Review and Declaration' section.
• Carefully review the application to ensure all details are accurate.
• Mark the checkbox to confirm the information's accuracy.
• Click 'Submit' to formally submit your Corporate Tax Registration application.

Step 12: Confirmation and Reference Number

• Upon successful submission, a Reference Number will be generated for your application.
• Keep this reference number for future communication with the Federal Tax Authority (FTA).

Learn about: Who should get corporate tax registration in UAE?

Penalty for late corporate tax registration in UAE

Businesses in the UAE face a hefty AED 10,000 administrative penalty for late corporate tax registration, as per Cabinet Decision No. 10 of 2024 issued by the Ministry of Finance. This penalty ensures compliance with tax regulations and aligns with penalties for late registration on other taxes like excise and value-added tax. Remember to register within the deadlines set by the Federal Tax Authority to avoid this penalty.

Also read: How to calculate corporate tax in UAE?

Is Corporate tax registration applicable for UAE Freezone Companies?

Yes, corporate tax registration applies to UAE Freezone companies, but they may qualify for a 0% tax rate on their Qualifying Income if they meet specific requirements. Otherwise, the standard 9% corporate tax rate applies.

Learn more: Is Corporate Tax Applicable for Freezone Companies?

Common mistakes to avoid during corporate tax registration

Corporate tax registration process might seem simpler, but some common mistakes businesses often make. Knowing those mistakes, you can prevent the delay and possibly the rejection of your application. Some of the common mistakes are followed by,

• Incomplete or inaccurate documents: Ensure all required documents are complete and contain accurate information. This might include trade licenses, financial statements, and ownership details.
• Arabic spelling mistakes: For non-Arabic speakers, double-check the spelling of any Arabic characters used in document submission
• Misclassifying your business activity: The applicable tax rate or exemptions might depend on your business activity. Ensure you correctly categorize your operations to avoid any discrepancies.

Conclusion

In conclusion, registering for Corporate Tax in the UAE through EmaraTax involves several steps, from gathering documents and logging in to reviewing and submitting your application. Remember to carefully review all information for accuracy before submitting it to avoid delays. This article provides a detailed guide to navigating the EmaraTax registration process and highlights common mistakes to avoid to ensure a smooth experience.

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