The FTA Email Most People Misread
After you submit a CT deregistration application on EmaraTax, the FTA often sends an email requesting additional information. This is standard — it doesn't mean something is wrong. The email looks like this:
The FTA requires the following additional information in respect of your application to deregister for Corporate Tax purposes.
kindly attach - Full Financial Statements for all the tax periods.
(Balance sheet, Trial Balance, Profit and loss) or a declaration letter
of the revenue and the assets and it should be signed or stamped
Most people read "Full Financial Statements" and stop there. They think they need a full set of IFRS financials — balance sheet, P&L, cash flow statement, notes — prepared by an auditor. That can cost AED 999–2,500+ and take 2–3 weeks.
But look at the email again. There are two words most people miss: "or a declaration letter."
The FTA explicitly accepts either full financial statements or a signed declaration letter covering the revenue and assets. For many companies — especially small, low-revenue, or dormant ones — the declaration letter is the faster, cheaper, and perfectly valid option.
Option 1: Declaration Letter — When It Works
A declaration letter is a simple document — typically one page — signed and stamped by the company's authorised signatory, declaring the revenue and assets for each tax period. It's not a full set of financial statements. It's a formal statement that the FTA can use to verify your CT return was accurate.
When a Declaration Letter Is Sufficient
Based on our experience filing hundreds of CT deregistrations, a declaration letter typically works when:
Zero revenue company: The company never traded, had no income, and no significant assets. A letter confirming "AED 0 revenue, AED 0 assets" is usually enough.
Minimal revenue company: Revenue under AED 100,000, straightforward business, no complex transactions. The letter states the exact revenue figure and confirms assets.
Company already has a liquidation report: If a liquidation report was prepared by another auditor but doesn't perfectly match the CT tax periods, a declaration letter can bridge the gap — referencing the liquidation report and declaring revenue/assets for the specific CT period dates.
No employees, no fixed assets, no complex liabilities: Simple balance sheet with just cash and maybe a shareholder loan.
✅ Real example: A Sharjah free zone company with AED 17,000 in revenue, no employees, and minimal expenses had a liquidation report from another auditor — but the liquidation report period didn't match the CT tax period dates. Instead of preparing new financial statements (AED 999+), Fastlane submitted a signed declaration letter referencing the existing liquidation report and declaring the revenue and assets for the FTA's specific periods. Result: CT deregistration approved. No additional financials needed.
What the Declaration Letter Must Include
Company letterhead — the letter must be on your company's official letterhead.
Company details — legal name, TRN, and the deregistration application reference number.
Revenue declaration for each tax period — "Total revenue for the period [start date] to [end date] was AED [amount]." Cover every CT period from your first tax period to the cessation date.
Asset declaration — "Total assets as of [cessation date] were AED [amount]." If zero, state zero.
Confirmation of cessation — "The company ceased all business activities on [date]."
Signed and stamped — by the authorised signatory (as registered with the free zone or DED). Company stamp must be applied.
💡 Pro tip: At Fastlane, we always try the declaration letter route first for qualifying companies. It saves the client AED 500–1,500+ in accounting/audit fees and speeds up the process by 1–2 weeks. If the FTA comes back and specifically requests full financials, we prepare them at that point — but in most small company cases, the declaration letter is accepted.
Option 2: Full Financial Statements — When You Need Them
Full financial statements are needed when the FTA is not satisfied with a declaration letter — or when the company's financial situation is too complex for a one-page letter to cover.
When Financial Statements Are Required
Revenue above AED 3 million: Higher-revenue companies are scrutinised more closely. The FTA wants to see proper IFRS financials.
Complex transactions: Related-party transactions, intercompany balances, foreign currency dealings, or multiple revenue streams.
Significant assets: Fixed assets, inventory, investments, or receivables that need proper valuation and disclosure.
Employees with EOSB: End-of-service benefit provisions must be properly calculated and disclosed.
FTA specifically rejects the declaration letter: If you submitted a declaration letter and the FTA comes back asking for full financials, you must comply.
What's Included in Full Financial Statements
| Document | What It Shows |
|---|---|
| Balance Sheet (Statement of Financial Position) | Assets, liabilities, and equity at the end of each tax period |
| Profit & Loss (Statement of Comprehensive Income) | Revenue, expenses, and net profit/loss for each period |
| Trial Balance | All ledger account balances — proves the books balance |
| Notes (if full IFRS) | Accounting policies, detailed breakdowns, disclosures |
Fastlane prepares financial statements for CT deregistration from AED 499 (simple companies) to AED 999+ (companies with activity and complex balances). CT deregistration from AED 399 →
The Decision Framework — Which Route to Take
| Your Situation | Start With | Cost Saving |
|---|---|---|
| Zero revenue, dormant company | Declaration letter | Save AED 499–999 |
| Under AED 100K revenue, simple structure | Declaration letter | Save AED 499–999 |
| Already have liquidation report but periods don't match CT | Declaration letter + attach existing report | Save AED 999+ |
| Revenue AED 100K–3M, some complexity | Try declaration letter first → financials if rejected | Potential saving |
| Revenue above AED 3M, employees, assets | Full financial statements | Don't risk rejection |
CT Deregistration from AED 399
We try the declaration letter first. If the FTA needs financials, we prepare them. Either way, you're covered.
What Happens If Your Declaration Letter Is Rejected?
If the FTA isn't satisfied with the declaration letter, they'll send another "additional information required" email — this time typically more specific about what they need. At that point, you prepare the financial statements and resubmit.
This isn't a failure — it's a calculated approach. You tried the cheaper, faster route first. If it works (and it usually does for small companies), you've saved time and money. If it doesn't, you prepare the financials — same cost as if you'd started there.
The key is responding promptly to FTA requests. Don't let additional information requests sit unanswered — the FTA can reject the deregistration application entirely if you don't respond within the stated timeframe.
Don't Forget: All Returns Must Be Filed First
Whether you use a declaration letter or full financials, the FTA requires all CT returns to be filed before the deregistration is approved. This includes the regular return for each completed tax period AND the final deregistration return covering the last period to the cessation date.
If you have unfiled returns, the AED 500/month late filing penalty is accumulating. File outstanding CT returns from AED 249 →
Also: all penalties must be paid before the certificate is issued.
Written & Reviewed by Nithin — FTA-Registered Tax Agent (TRN: 104218042400003)
Based on actual FTA additional information requests and outcomes from CT deregistration applications processed by Fastlane in 2025–2026. The declaration letter approach has been successfully used for dozens of small company deregistrations.