With respect to the dissolution and liquidation proceedings as stated in the official announcement of the above-mentioned company, you are hereby requested to undertake the following actions:
Why Did FTA Send You This Email?
When a UAE company initiates dissolution and liquidation proceedings, the licensing authority (DED, free zone, etc.) publishes an official announcement. FTA monitors these announcements and proactively contacts all affected companies to ensure their tax obligations are fulfilled before final closure.
This email is not optional correspondence — it's a formal notification that FTA is now tracking your company's closure. Failing to respond and complete the required actions will result in accumulating penalties for late filing, late payment, and failure to deregister.
🚫 Do Not Ignore This Email
Your tax obligations do not stop when your company stops trading. VAT returns, Corporate Tax returns, and tax liabilities continue until FTA officially approves your deregistration. Every month of delay can mean additional penalties — even though the company has zero revenue.
The 4 Actions FTA Requires — And How to Complete Each One
Here's a detailed breakdown of each action item from the FTA email and exactly what you need to do:
Link Your Email to the TRN
If you've lost access to EmaraTax or the previous authorised person is no longer available, you need to link a new email address to the company's Tax Registration Number. This is done through the EmaraTax portal and may require identity verification.
File All Outstanding Tax Returns
This includes all pending Corporate Tax returns and VAT returns — including the final return for each tax type covering the period up to the date of cessation.
Settle All Tax Liabilities
Any outstanding Corporate Tax, VAT, or penalties must be paid in full before FTA will process your deregistration. This includes late filing penalties that may have accumulated during the liquidation period.
Submit Deregistration Requests
File CT deregistration and VAT deregistration through EmaraTax with all required supporting documents, including the license cancellation letter.
Step-by-Step: The Complete FTA Tax Clearance Process
Here's the recommended sequence for responding to the FTA email and clearing all tax obligations:
Step 1 — Secure EmaraTax Access
Log into the EmaraTax portal (tax.gov.ae). If you don't have access, link a new email to the company's TRN. If the previous authorised person has left, you may need to submit a request with supporting documentation (trade license, passport, POA) to regain access.
Step 2 — Review Outstanding Returns
Check EmaraTax for any unfiled VAT returns and Corporate Tax returns. Note the filing deadlines and any penalties that may have already been applied for late filing.
Step 3 — File All Outstanding VAT Returns
Submit all pending VAT returns, including the final VAT return covering the last tax period before cessation. If there was no trading activity, the returns may show zero — but they still must be filed.
Step 4 — File All Outstanding Corporate Tax Returns
Submit all pending Corporate Tax returns, including the final CT return for the period up to cessation. If the company qualifies for Small Business Relief (revenue at or below AED 3,000,000), a simplified return can be filed.
Step 5 — Settle All Liabilities & Penalties
Pay any outstanding VAT, Corporate Tax, and penalties through EmaraTax. FTA will not process deregistration until all liabilities are cleared. Payments are made to the GIBAN assigned to the company's TRN.
Step 6 — Submit VAT Deregistration
File the VAT deregistration application through EmaraTax. Attach the license cancellation letter and any other supporting documents. FTA will review and may request additional information.
Step 7 — Submit Corporate Tax Deregistration
File the CT deregistration application through EmaraTax. You can submit this in parallel with the VAT deregistration. FTA will eventually require the license cancellation letter before approving.
Step 8 — Reply to FTA Confirming Completion
Once all returns are filed, liabilities settled, and deregistration requests submitted, reply to the FTA email confirming all actions have been taken. Include reference numbers for your deregistration applications so FTA can follow up accordingly.
What Happens If You Don't Respond?
Many business owners assume that once the company stops trading or the license is cancelled, FTA obligations automatically end. They don't. Here's what happens if you ignore the FTA email:
Late Filing Penalties Keep Accumulating
FTA imposes penalties for every VAT return and Corporate Tax return that is filed late. These penalties accrue regardless of whether the company has any revenue or tax liability. A company that has been dormant for months can still rack up thousands of dirhams in late filing penalties.
Late Payment Penalties Add Up
If there is any outstanding tax liability — even a small amount — late payment penalties are applied on top of the original amount. The longer you delay, the higher the total.
Failure to Deregister Penalty
FTA can impose a separate penalty for failure to deregister within the required timeframe. This applies to both VAT and Corporate Tax registrations.
Complications for Owners
Outstanding FTA obligations linked to a company can create complications for the owners — affecting their ability to start new businesses, obtain new trade licenses, or even renew residence visas in some cases.
⚠️ Your Obligations Run Until FTA Approves Deregistration
Even if your license has been cancelled, your company has stopped trading, and your bank account is closed — your obligation to file VAT returns and Corporate Tax returns continues until FTA officially approves both deregistrations. There is no automatic cessation of tax obligations.
Common Mistakes When Responding to FTA's Liquidation Email
1. Filing Returns but Forgetting to Submit Deregistration
Some business owners file all outstanding returns but don't submit the actual deregistration application. This means FTA keeps the registration active and new filing obligations continue to arise for subsequent tax periods.
2. Submitting CT Deregistration but Not VAT Deregistration
CT deregistration and VAT deregistration are separate applications. You must submit both. Many businesses only submit one and assume the other is automatically cancelled.
3. Not Having the License Cancellation Letter Ready
FTA will request the license cancellation letter during the deregistration review process. If your licensing authority hasn't issued it yet, you can still submit the initial application — but approval will be delayed until the letter is provided. Read more about this requirement.
4. Delaying the Response
Every day you delay adds to the potential penalty exposure. The FTA email is a clear signal that they are tracking your company's closure. Responding promptly demonstrates good faith and keeps the process moving.
What Fastlane Handles for You
As an FTA-registered Tax Agent, Fastlane provides end-to-end FTA tax clearance during company liquidation:
EmaraTax Access
We help link your email to the TRN and regain portal access if needed.
CT Return Filing
We file all outstanding and final Corporate Tax returns, including simplified returns under Small Business Relief.
VAT Return Filing
We file all pending and final VAT returns, including zero returns for dormant periods.
CT Deregistration
We submit the CT deregistration application and respond to all FTA queries. From AED 399.
VAT Deregistration
We submit the VAT deregistration application with all required documents.
FTA Communication
We reply to FTA's liquidation email on your behalf and manage all follow-up correspondence.
Frequently Asked Questions
Reviewed by Nithin
Nithin is the founder of Fastlane Management Consultancy, an FTA-registered Tax Agent and MoE-registered Auditor based in Dubai. He has managed hundreds of company closures and FTA tax clearance processes, ensuring businesses exit cleanly with all returns filed and deregistrations approved. TRN: 104218042400003.