The Ultimate Guide to Registering for UAE Corporate Tax

There are deadlines set by UAE authorities for companies to submit their applications for corporate tax registration. The Federal Tax Authority (FTA) decision has established deadlines for each category of taxable entities or individuals to register in order to comply with tax laws, and it will go into effect on March 1, 2024. 

The Ministry of Finance states that late registrations are subject to a Dh10,000 administrative fine. That’s all there is to it.

1. What are the updated corporate tax registration deadlines in UAE?

According to Cabinet Decision 75, there would be an administrative penalty of AED 10,000 for not adhering to the registration deadline.

To avoid the above penalty, businesses must promptly register with the Federal Tax Authority (FTA). 

Check the below mentioned schedule for Resident Judicial Persons’ Tax Registration – 

2. Pivotal Records for a Smooth Registration Process in the UAE

To ensure a smooth corporate tax registration process in the UAE, you’ll need to gather some essential documents. Here’s a checklist – 

• Valid Trade License copy: This proves your business operates legally in the UAE.

• Passport copies of owners/partners (valid): If you have multiple owners or partners, ensure all their passports are valid.
• Valid Emirates ID copies of owners/partners: This applies to UAE resident owners/partners.

• Certificate of Incorporation (or Memorandum of Association – MOA): This document outlines your company’s formation and structure.
• Power of Attorney (POA) (if applicable): If someone is registering on the company’s behalf, a valid POA is required.

• Complete company address and P.O. Box information: Ensure the FTA has accurate contact details for your business.
• Contact details of a designated person: Provide the name, email address, and phone number of someone reachable for tax-related communication.
• Corporate tax period and annual financial report: While not always mandatory during registration, having these documents prepared demonstrates readiness for tax filing.

3. The Advantages of Timely Corporate Tax Registration in the UAE

There are several advantages to registering for UAE Corporate Tax on time:

• Avoid Penalties: The most immediate benefit is avoiding a hefty penalty of AED 10,000 (approx. USD 2,722) for late registration 
• Compliance and Peace of Mind: Timely registration demonstrates your commitment to following UAE tax regulations. This can prevent future legal hassles and potential business license complications.
• Eligibility for Tax Relief: Certain businesses qualify for tax relief programs in the UAE. Timely registration ensures you don’t miss out on these potential benefits 
• Early Planning and Budgeting: Starting the registration process early allows you to assess your tax liabilities and plan your finances accordingly. This can help with budgeting and cash flow management.
• Streamlined Future Filings: Timely registration gets you into the Federal Tax Authority (FTA) system. This simplifies future tax filing processes and avoids last-minute scrambling.
• Transparency and Reputation: Timely registration showcases your business as transparent and responsible. This can be especially beneficial if you’re dealing with international partners or investors who value adherence to regulations.

4. Consult with SPK accountants and auditors for expert assistance

At SPK Auditors, we are pleased to help you with company tax-related issues. Our knowledgeable staff can assist in ensuring prompt registration and adherence to tax laws.

Make sure your company stays compliant with the law by getting in touch with SPK right now rather than taking any chances with compliance!