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Corporate Tax Registration

KWS takes the complexity out of taxes, offering a range of services to ensure your business stays compliant and maximizes.

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Corporate Tax Registration

Corporate Tax is a form of direct tax levied on the net income of corporations and other businesses. Corporate Tax is sometimes also referred to as “Corporate Income Tax” or “Business Profits Tax” in other jurisdictions. Corporate tax registration refers to the process by which a business entity formally registers with the appropriate tax authority to fulfill its obligations related to corporate taxation.

The purpose of corporate tax registration is to ensure compliance with tax laws and regulations, enabling the business to fulfill its tax obligations, file tax returns, and pay taxes on its profits or income. Corporate Tax is a form of direct tax levied on the net income of corporations and other businesses.

Who is subject to Corporate Tax?

Corporate tax in the UAE shall be imposed on the taxable income of businesses at the following rates :

  • A 0% corporate tax rate applies to taxable income up to AED 375,000
  • A 9% corporate tax rate applies to taxable income over AED 375,000
  • A 15% corporate tax rate applies to all multinational corporations subject to OECD Base Erosion and Profit-Sharing laws that belong within Pillar 2 of the BEPS 2.0 framework, i.e. combined worldwide revenues in excess of AED 3.15 billion.

Who needs to register for Corporate Tax in UAE?

Broadly, Corporate Tax applies to the following “Taxable Persons”:

  • Profits Exceed AED 375,000: Any business with profits over this threshold must register and file tax returns.
  • Foreign Companies with a UAE Presence: Foreign businesses with a branch or permanent establishment in the UAE are required to register.
  • Oil, Gas, and Petrochemical Companies: These companies are taxed regardless of their profits.
  • Financial Institutions: Banks, insurance companies, and other financial entities must register.
  • Free Zone Entities: Free zone businesses may need to register unless they meet certain conditions for exemption.
  • Exemptions: Some sectors like healthcare and education may be exempt from Corporate Tax.

Documents required for Corporate Tax registration

To register for Corporate Tax in UAE, businesses must be ready to submit the required documents. The process for corporate tax registration will be done online. The following documents required for Corporate Tax Registration in UAE.

  • Copy of Trade License (must not be expired).
  • Passport copy of the owner/partners who own the license (must not be expired).
  • Emirates ID of the owner/partners who owns the license (must not be expired).
  • Memorandum of Association (MOA) – Or – Power of Attorney (POA)
  • Concerned person’s contact details (Mobile Number and E-mail).
  • Contact details of the company (complete address and P.O. Box).

Procedure of Corporate Tax registration

The procedure of filing corporate tax returns in UAE includes,

  • Tax registration : Obtain a tax registration number from the Federal Tax Authority (FTA) by submitting the required documents and information.
  • Record keeping : Maintain proper records of all financial transactions and tax-related documents in accordance with the UAE tax laws.
  • Preparation of tax return : Calculate taxable income and prepare a tax return based on the records maintained, taking into account tax deductions and exemptions as per the UAE tax laws.
  • Filing of tax return : Submit the tax return to the FTA through their online platform, e-Services, on or before the due date.
  • Payment of tax : Pay the tax liability as per the tax return filed on or before the due date.
  • Tax audit : In case of a tax audit, the FTA may request additional information or documents to verify the accuracy of the tax return filed.

We can help you in calculating and devising your tax liability for Corporate tax and assist you throughout the UAE Corporate tax return filing process

Corporate Tax Exemptions

  • Government entities.
  • Government controlled entities.
  • Person engaged in an extractive business.
  • Person engaged in a non-extractive natural resource business.
  • Qualifying public benefit entity.
  • Qualifying investment fund.
  • Public pension or social security fund that is subject to regulatory oversight of the competent state authority.
  • Private pension or social security fund that is subject to regulatory oversight of the competent state authority.
  • A juridical person incorporated in the State that is wholly owned and controlled by an Exempt Person that conducts any of the following:
  • An Exempt person under the UAE Tax Law is a person who would generally be liable to tax, but by virtue of the specific exemption, they are exempted from taxation