Article 51 of the UAE CT law indicates that taxable persons should register under CT with the FTA within the given deadline, which is given in FTA Decision Number 3, 2024.
Businesses in the UAE will be liable to Corporate Tax Registration Dubai beginning with their first fiscal year commencing on June 01, 2023 – according to UAE Federal Decree-Law No. 47 of 2022 (the “Corporate Tax Law”). All companies, organizations, and persons involved in any business activities in the UAE under a commercial license will be liable to corporation tax in Dubai, UAE.
The corporate tax registration Dubai rate is set at 9% of net earnings by the FTA. This means any business liability pays the tax must pay 9% of their profits if their revenue exceeds AED 375,000.
Businesses need to seek help from corporate tax consultants in Dubai. This guarantees their operations align with the tax legislation.
Corporate Tax Registration In Dubai
Corporation tax in Dubai and the UAE shows their commitment to encouraging economic growth and guaranteeing compliance with global tax standards. By applying corporation tax, they strengthen their reputation as appealing destinations for businesses and investors, providing stability, transparency, and a level playing field.
The introduction of corporation tax UAE registration intends to strengthen the country’s status as a prominent worldwide business and investment destination. This strategic step is expected to hasten the country’s development and transformation, assisting it in meeting its long-term objectives. By implementing corporate tax in Dubai, the UAE confirms its commitment to achieving international tax transparency requirements and eliminating damaging tax practices.
Timeline for Residential Juridical Persons
A juridical person is someone who is a resident, incorporated, or otherwise established or recognized before the effective date of this Decision (i.e., March 01, 2024), and should submit the Tax Registration application according to the following instructions –
Date of License Issuance (any earliest issued) | Deadline for Submitting a Tax Registration Application |
01 – 31 January and 01 – 28/29 February | 31 May 2024 |
01 – 31 March and 01 – 30 April | 30 June 2024 |
01 – 31 May | 31 July 2024 |
01 – 30 June | 31 August 2024 |
01 – 31 July | 30 September 2024 |
01 – 31 August and 01 – 30 September | 31 October 2024 |
01 – 31 October and 01 – 30 November | 30 November 2024 |
01 – 31 December | 31 December 2024 |
Where a person does not have a license at the effective date of this Decision | 3 months from the effective date of the Decision Number 3 (March 01st, 2024) |
Timeline for Non-Resident Juridical Persons
The timeline for non-resident juridical person is different from the residential person –
Category of Juridical Person | Deadline for Submitting UAE Coporate Tax Registration Application |
A person having a Permanent Establishment (PE) | 9 months from receiving the PE |
01 March 2024 (A person having nexus prior to 01 March 2024) | 3 months starting from 01 March 2024 |
01 March 2024 to PE | 06 months from the date of receiving PE |
01 March 2024 (A person having nexus prior to 01 March 2024) | 3 months from the date of nexus establishments |
Timeline for Natural Person
Decision number 03 clarifies that a natural person conducting business in the UAE and exceeding AED 1 million should register for corporate tax in UAE. Here’s the deadline for the natural person –
- A Resident Person – 31 March (from the date of commencement of business)
- A Non-Resident Person – 3 months from meeting the requirements of being subjected to corporate tax.
The penalties for failure of late registration will amount to AED 10,000 for each taxable person.
Who is Exempted from Corporate Tax in the UAE?
Categories | Types of Exempted Individuals | Conditions of Exemptions |
Notifications and Countries | Extractive and Non-Extractive Natural Resource Business | Notify the Ministry of Finance and meet the necessary prerequisites. |
Cabinet decisions and conditions | Qualifying Public Benefit Entities and Government Controlled Entities | listed in the Cabinet Decision and satisfy the necessary conditions |
Exemption granted upon application and acceptance | Pension or social security funds, both public and private | Apply to and get approved from the FTA |
Qualifying investment funds | Apply to and get approved from the FTA | |
Legal entities established in the United Arab Emirates that are owned and managed by particular Exempt Entities | Apply to and get approved from the FTA | |
Any person as decided by the Cabinet | Decision issued by the Cabinet as suggested by the Minister |
VATAccounting UAE - Your Reliable Partner for Corporate Tax UAE Registration
VATAccoungting UAE is one of Dubai’s best corporate tax consultants, offering comprehensive tax registration services. Apart from corporate tax registration, we also provide several other services, including VAT registration, VAT accounting and auditing, corporate tax filing, etc. Contact us for corporate tax services in Dubai. Our experts will reach out to you!
FAQ's
Corporate taxation in the UAE will be applied for the following purposes –
- All natural people engaged in commercial activity in the UAE
- Every company and legal person in the UAE
Corporate tax in the UAE is calculated at a rate of 9% based on the net profit shown in the company’s financial statements. This calculation is made after deducting all allowable deductions and removing tax-free income. Foreign taxes paid can also be subtracted from the profit shown on the balance sheet. The taxable income is calculated as the net profit after all deductions. Only if the taxable value exceeds AED 375,000 is corporate tax at 9% levied. Use an online corporation tax calculator to compute your corporate tax. It will calculate your corporation’s tax liability.
In the UAE, Free Zone Companies would be subject to Corporate Tax. However, the corporation tax for free zone enterprises in the UAE would be determined by how well they maintain appropriate substance and adhere to all applicable regulations.
Yes, you can. However, registering for corporate tax in the UAE can be daunting. So you can contact VATAccoutingUAE.com for a detailed discussion about corporate tax and the registration process.