Corporate Tax Registration in UAE

Registration for Corporate Tax in the UAE is now open. All businesses are required to register for Corporate Tax.

Corporate Tax Registration

All companies in UAE whether based in Mainland or Freezones have to be registered with Federal Tax Authority (FTA) for the purpose of Corporate Taxation, irrespective of whether the company was previously registered with FTA for Value Added Tax (VAT) purpose.

Branches of the company are required be registered under main license (head office) even if the business is operating via branches in more than one Emirate, therefore; only one registration is required for head office and branches.

Company can be registered either individually or be registered as part of Tax Group which can be formed if all of the below criteria are met:

The parent company holds at least 95% of the share capital and voting rights of its subsidiaries, either directly or indirectly through one or more Subsidiaries. Parent Company is entitled to at least 95% of the Subsidiary's profits and net assets, either directly or indirectly through one or more Subsidiaries.
Neither parent company, nor subsidiary can be an exempt entity or a Qualifying Free Zone Person.
All group entities use the same financial year and prepare their financial statements using the same accounting standards.
Sub-subsidiary can be part of tax group, if parent company together with other subsidiaries own at least 95% of share capital.
The UAE branch of the parent company or any of its subsidiaries, can be part of the tax group.

Corporate Tax Implementation And Compliances

Effective dealing with the implications of corporate taxation on your business requires evaluation of the tax impact on business cash flows which is 9% of their taxable profit that is calculated after adjusting accounting profit, calculated under International Financial Reporting Standards (IFRS), based on the provisions of the Corporate Tax Law.

After the assessment of tax impact on your business, the opportunities must be identified and evaluated under the ambit of Corporate Tax Law to legitimately save unnecessary tax payments.

For further details on Corporate Tax matters and its planning & management, click on below link:

Corporate Tax Matters, Planning and Management

Our Corporate Tax Implementation Strategy is based on the following. phased approach

DETAILED IMPACT ASSESSMENT

Evaluation of existing contracts, business models and legal structure to understand the impact on operational (supply chains/processes, transaction flows), financial (margins, pricing, cash flows), and legal (contract, business structures) aspects of the business.

IMPLEMENTATION SUPPORT

After the impact assessment, the change management and project management procedures are formulated for seamless implementation of Corporate Tax planning, reporting and compliance framework.

POST IMPLEMENTATION SUPPORT

Corporate Tax planning, reporting and compliance is an ongoing process which is supported under supervision of skilled and experienced professionals.

FAQs

Who should register for corporate tax in UAE?

All entities whether in Freezone or Mainland must register with Federal Tax Authority (FTA) for Corporate Tax purpose, irrespective that entities are previously registered for VAT purpose. Branches of the entities do not need to be registered separately irrespective of their Emirate location.