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Corporate Tax Registration in the UAE

Feb 13, 2025 | Accounting, Business Setup, Featured Posts

Figuring out how to register for corporate tax in the UAE can be challenging for businesses. With the introduction of Federal Decree-Law No. 60 of 2023, entities operating within the Emirates must now comply with corporate tax regulations. This guide explains the steps required for corporate tax registration to help your business stay compliant.

From creating an account on the Federal Tax Authority’s (FTA) EmaraTax portal to submitting the required documentation, this article will walk you through the process in a structured and easy-to-follow manner.

Table of Contents

Who Needs to Register for Corporate Tax in the UAE?

Businesses Required to Register

The following entities are required to register for corporate tax in the UAE:

Companies operating under a commercial licence.
Businesses engaged in banking, real estate, construction, development, agency, and brokerage activities.
Foreign businesses that are earning income in the UAE through ongoing trade or business activities.
Newly incorporated LLCs must register with the FTA.
Small businesses with revenue under AED 3 million must still register, even if they are exempt from the 9% tax rate.
All free zone entities must register, even if they qualify for a 0% tax rate.

Businesses Exempt from Registration

Non-resident individuals who are earning income from the UAE without a permanent establishment.
Entities engaged in natural resource extraction, who are already taxed at the Emirate level.
Government bodies, qualifying public benefit entities, and investment funds seeking exemption (must register first before applying for tax-exempt status).
Branches of domestic companies (they are considered part of the parent company and do not require separate registration).

Tax Residency Criteria

Individuals may be considered tax residents if they:

Reside in the UAE for 183 days or more within 12 months.
Stay in the UAE for at least 90 days within 12 months, provided they are a UAE or GCC national, or hold a UAE residence permit.

How to Register for Corporate Tax in the UAE

1. Create an Account on the EmaraTax Portal

Sign up on EmaraTax using your email and phone number.
If you already have an FTA account, your details will be transferred, and you’ll need to reset your password.
The portal integrates with UAE Pass for seamless access.

2. Select Entity Type and Submit Details

Choose the correct entity type (natural person or legal person).
Provide your trade licence, Emirates ID, or passport of the authorised signatory.
If the applicant is a legal person, proof of authorisation is required.

3. Add Business Activities and Owners

Enter details about your business activities and owners.
The FTA uses this information to determine your tax status and obligations.

4. Complete and Submit the Online Application

Fill in the corporate tax registration application form carefully.
Submit required documents in PDF or Word format (max 5MB per file).
Double-check all details before submitting.

5. Receive Tax Registration Number (TRN)

The FTA typically processes applications within 20 business days.
If additional documents are needed, you have 60 days to submit them.
Upon approval, you’ll receive your Corporate Tax Registration Number (TRN), essential for tax filings.

If you need any additional help, you can read this user manual that the Federal Tax Authority (FTA) has created, or check out the EmaraTax FAQ page.

Required Documentation for Corporate Tax Registration

1. Financial Records

Detailed financial statements outlining income, expenses, and deductions.
Records must be kept for seven years after the relevant tax period.
Tax groups must submit individual financial statements for each entity.

2. Legal Documents

Trade Licence
Memorandum of Association (MOA) or Articles of Association (AOA)
Annual Financial Audit Report (for entities required to maintain audited records)

3. Identification of Owners

Passport copies of owners, partners, and shareholders.
Emirates ID copies.
Business contact details, including full address and PO Box.

HOW MUCH DOES STARTING A BUSINESS IN THE UAE COST?

Corporate Tax Requirements for Foreign-Owned Businesses

Foreign entities and individuals will be subject to corporate tax (CT) if they conduct trade or business within the UAE on a regular or ongoing basis. The law considers foreign natural persons conducting business in the UAE as “Resident Persons” for corporate tax purposes.

Tax Rates for Foreign-Owned Businesses

Foreign businesses must be aware of the standard 9% corporate tax rate for taxable income exceeding USD 102,110 (AED 375,000).
The 0% tax rate applies to Qualifying Free Zone Persons with taxable income up to USD 102,110 (AED 375,000).

OECD Base Erosion and Profit Shifting (BEPS) Impact

Large multinational companies that meet specific criteria under the OECD BEPS project may be subject to a different tax rate.
These companies may need to comply with a minimum effective tax rate of 15%, ensuring they contribute fairly to the global tax system and reducing tax avoidance.

Foreign businesses should ensure they understand their tax obligations under UAE law to avoid penalties and non-compliance issues.

What is Taxed and What is Exempt?

Taxable Income

Revenue from business activities such as banking, commercial trading, and professional services.
Real estate income from commercial rental properties.
Foreign companies conducting trade or business within the UAE.
Investment income, including capital gains from UAE-based business activities.

Exemptions and Non-Taxable Income

Dividends received from qualifying shareholdings.
Capital gains on the sale of shares (if conditions are met).
Personal income (such as salaries and wages).
Interest from bank deposits and savings schemes.
Intra-group transactions and business reorganisations (if qualifying conditions are met).
Income from personal real estate investments.

Compliance and Reporting Obligations

Businesses must ensure they are registered for corporate tax (CT) by the deadlines determined by the issuance date of their earliest trade licence.
If a business holds multiple trade licences, the registration deadline is set by the earliest issued licence, not the most recent one. This prevents businesses from delaying corporate tax registration by relying on later-issued licences.

For example:

If a company has a trade licence issued in January 2023 but later acquired another in July 2024, the corporate tax registration deadline would still be based on the January 2023 licence issuance.

Tax Filing Deadlines

Companies must file their first corporate tax return within nine months after their financial year ends.
The registration deadline for natural persons conducting business in the UAE is 31 March 2025. Failing to register for corporate tax before the deadline incurs a penalty of AED 10,000. Additional fines apply for late tax filing, incorrect information, or failure to keep records.

Mandatory Disclosure Requirements

Businesses must disclose financial activities transparently.
Companies must retain records for seven years for compliance and auditing purposes.

Deregistering from Corporate Tax in the UAE

Businesses that cease operations or meet exemption criteria may apply for corporate tax deregistration through the Federal Tax Authority (FTA). This process is essential to avoid unnecessary tax obligations and penalties.

Who Can Apply for Corporate Tax Deregistration?

Companies that have permanently ceased business operations in the UAE.
Businesses that no longer meet the criteria for corporate tax liability.
Entities that have undergone liquidation or dissolution.

How to Deregister for Corporate Tax

Submit a Deregistration Request: Log in to the EmaraTax portal and complete the deregistration request form.
Provide Supporting Documents: Submit proof of liquidation, business closure, or exemption status.
Settle Outstanding Tax Liabilities: Ensure all pending corporate tax returns and payments are cleared.
Await FTA Approval: The FTA will review your request and notify you of the status of the deregistration.

Important Considerations

Failure to deregister properly may result in penalties.
The FTA may conduct an audit before approving deregistration.
Businesses must maintain financial records for at least seven years after deregistration.

Corporate Tax Registration with Virtuzone

Navigating corporate tax registration in the UAE may seem overwhelming, but with the right approach, it’s manageable. Timely registration ensures your business remains compliant and avoids penalties.

At Virtuzone, we specialise in simplifying corporate tax registration for businesses of all sizes. Our team of experts provides comprehensive support, from initial registration to ongoing compliance, ensuring that you meet all FTA requirements with ease.

By partnering with us, you gain access to:

Hassle-free tax registration and compliance support
Expert advice tailored to your business needs
Efficient documentation and filing assistance
Continuous updates on tax regulations to keep your business ahead

Don’t leave your corporate tax obligations to chance. Book a free consultation with Virtuzone today and let our tax specialists help you achieve full compliance effortlessly.

FAQ’s

What is the Deadline for Corporate Tax Registration in the UAE?

The registration deadline depends on the issuance date of your earliest trade licence. For natural persons conducting business, the deadline is 31 March 2025. Businesses with multiple trade licences must register based on the earliest issued licence to remain compliant.

Who Needs to Register for Corporate Tax in the UAE?

All companies operating under a commercial licence, businesses in banking, real estate, construction, and brokerage, as well as foreign businesses earning income in the UAE, must register. Free zone entities must register even if they qualify for a 0% tax rate.

Are Small Businesses in the UAE Required to Register for Corporate Tax?

Yes, small businesses with revenue below AED 3 million are still required to register, even if they are exempt from paying the 9% corporate tax.

How Long Does it Take to Receive a Tax Registration Number (TRN)?

The Federal Tax Authority (FTA) typically processes applications within 20 business days. However, if additional documents are required, businesses must submit them within 60 days to avoid delays.

What are the Penalties for Late Corporate Tax Registration in the UAE?

Failing to register by the deadline incurs a fine of AED 10,000. Additional penalties apply for late tax filings, incorrect information, or failure to maintain financial records.

What Income is Subject to Corporate Tax in the UAE?

Taxable income includes revenue from business activities, commercial rental income, foreign business earnings, and capital gains on UAE-based investments. However, dividends, personal salaries, bank interest, and qualifying intra-group transactions are exempt.

Do Sole Establishments Need to Register for Corporate Tax in the UAE?

Yes, sole establishments with an annual turnover exceeding AED 1 million in a Gregorian calendar year must register for corporate tax and file a tax return. Even if a sole establishment is owned by an individual, it is treated as a business entity for tax purposes once it crosses this revenue threshold.

Do Non-Resident Individuals Need to Register for Corporate Tax in the UAE?

Non-resident individuals earning income from the UAE without a permanent establishment are exempt from corporate tax registration. However, they must ensure their business activities do not qualify them as a Resident Person, which could make them subject to corporate tax obligations.

Do UAE Branches of Domestic Companies Need to Register for Corporate Tax?

No, UAE branches of domestic companies do not need to register separately for corporate tax. They are considered extensions of their parent company, meaning all tax obligations are fulfilled under the parent entity’s registration.

However, foreign company branches may need to register if they meet the criteria for having a permanent establishment in the UAE.

Can I Register Multiple Trade Licences Under One Corporate Tax Account?

Yes, businesses that hold multiple trade licences can register under one corporate tax account, provided they belong to the same legal entity. The Federal Tax Authority (FTA) determines the corporate tax registration deadline based on the earliest issued trade licence, not the most recent one. This means that even if a business acquires additional licences, the corporate tax obligations remain linked to the original trade licence date.

However, if the licences belong to separate legal entities, each entity must register for corporate tax independently. Businesses must ensure they meet the compliance requirements for each licence type to avoid penalties and non-compliance issues.

How Do I Register for Corporate Tax in the UAE?

Corporate tax registration is done via the EmaraTax Portal by creating an account, selecting the entity type, submitting business activities and ownership details, completing the online application, and submitting the required documents.