Created with
Quick answer
When a dormant company deregisters for Corporate Tax and the FTA asks for financials at the final stage, a genuinely no-activity company can submit a Declaration of No Business Activity instead of full financial statements. The key to getting it accepted: declare your nil revenue and your no-assets / no-liabilities position for each tax period separately — not as one consolidated statement covering the whole life of the company. Corporate Tax is assessed period by period, so your declaration must map to each tax period on your record: the first tax period, each subsequent financial year, and the final stub period ending on your cessation date.
Here’s a small thing that causes big delays. A dormant company applies to deregister from Corporate Tax; at the final stage the FTA asks it to support the application; the owner writes a one-line “the company never traded” declaration — and it comes back queried. The fix is almost always the same: the declaration needs to speak to each tax period, not the company’s life as a whole.
What it is
A declaration that can replace financial statements
At the final stage of a Corporate Tax deregistration, the FTA may ask you to substantiate the position before it approves. A company that genuinely never traded doesn’t need to manufacture full financial statements — it can submit a Declaration of No Business Activity: a signed statement confirming there was nil revenue and no assets or liabilities. But the FTA has to be able to match that declaration to what’s on its record — and its record is organised by tax period.
The core idea
Period by period — not one consolidated statement
Corporate Tax is assessed per tax period
Each tax period (broadly, each financial year) is its own unit for Corporate Tax — its own return, its own assessment. So a declaration that lumps everything into a single blanket statement doesn’t line up with how the FTA sees your company. The declaration should list each tax period separately and state, for that period, that there was nil revenue and no assets or liabilities. One statement per period, mapped to the record.
The structure
What to declare, for each period
For every tax period from your first tax period through to the cessation date, the declaration should confirm two things:
- Nil revenue for that period; and
- No assets and no liabilities for that period.
Here’s the shape of it, using illustrative periods for a company with a December year-end that ceased mid-year:
| Tax period | Revenue | Assets & liabilities |
|---|---|---|
| First tax period (start → 31 Dec, Year 1) | Nil | None |
| 1 Jan → 31 Dec, Year 2 | Nil | None |
| 1 Jan → cessation date, Year 3 | Nil | None |
Note the final stub period — from the start of your last financial year to the cessation / licence-cancellation date. It’s the one people most often forget, and leaving it out is a common reason the declaration is sent back.
Getting the periods right
How to work out your tax periods
- First tax period — runs from the start of your first financial year on or after Corporate Tax applied, to that year-end.
- Each subsequent financial year — one tax period per year.
- Final stub period — from the start of your last financial year to the cessation date.
The period dates in your declaration should match the tax periods on your FTA record exactly — mismatched dates are as likely to trigger a query as a missing period.
Format essentials
Making it acceptable
- On company letterhead, addressed to the Federal Tax Authority, with a clear subject line.
- Each tax period listed separately, each with its nil-revenue and no-assets/no-liabilities confirmation.
- A statement that the information is true and accurate.
- Signed by the authorised signatory and stamped with the company stamp.
Get the structure right and a genuinely dormant company’s deregistration clears far more smoothly — no manufactured financials, no back-and-forth over which years are covered.
Deregistering a dormant company? We’ll draft the declaration properly.
We work out your exact tax periods, prepare the no-business-activity declaration period by period, and file your Corporate Tax deregistration and final return — so it clears without back-and-forth. CT deregistration from AED 399.
Related reading
Why the FTA rejects deregistration financial statements →Close your company early and still get the AED 10,000 penalty waived →Related Fastlane services
FAQ
What is a “no business activity” declaration for CT deregistration?
It is a signed declaration a dormant company can submit to the FTA at the final stage of Corporate Tax deregistration, confirming it had nil revenue and no assets or liabilities. For a company that genuinely never traded, it can take the place of full financial statements, provided it is structured to match the tax periods on the FTA’s record.
Should the declaration cover each tax period separately or all at once?
Each tax period separately. Corporate Tax is assessed period by period — each financial year is its own unit with its own return and assessment — so a single consolidated statement covering the whole life of the company does not line up with the FTA’s record. List each tax period and state, for that period, that there was nil revenue and no assets or liabilities.
What must the declaration state for each tax period?
For every tax period from your first tax period through to the cessation date, it should confirm two things for that specific period: nil revenue, and no assets and no liabilities. Declaring both, per period, is what allows the FTA to reconcile the declaration against each period on its record.
What are my tax periods for the declaration?
Your first tax period runs from the start of your first financial year on or after Corporate Tax applied to that year-end; then each subsequent financial year is a tax period; and the final stub period runs from the start of your last financial year to the cessation or licence-cancellation date. The final stub period is the one most often forgotten.
When does the FTA accept this instead of financial statements?
When the company genuinely had no business activity. A dormant company that never traded can support its Corporate Tax deregistration with a no-business-activity declaration rather than manufacturing full financial statements. A company that did trade, however, would still be expected to provide proper financials for the relevant periods.
What format should the declaration take?
It should be on company letterhead, addressed to the Federal Tax Authority with a clear subject line, list each tax period separately with its nil-revenue and no-assets/no-liabilities confirmation, include a statement that the information is true and accurate, and be signed by the authorised signatory and stamped with the company stamp.
General guidance on the no-business-activity declaration for Corporate Tax deregistration, current as of August 2026; not tax advice. Whether the FTA accepts a declaration in place of financial statements depends on your facts, and tax periods are determined under Federal Decree-Law 47 of 2022. Confirm your position with a qualified tax adviser or the FTA before submitting.