Understanding the administration of Corporate Tax is crucial for businesses operating in the UAE. In this blog, we'll dive into the registration and deregistration process, ensuring your company remains compliant with local regulations.
Registration and Deregistration
All Taxable Persons in the UAE must register for Corporate Tax with the Federal Tax Authority (FTA) and obtain a Tax Registration Number. This process should be completed before a deadline set by the FTA. It's advisable to register as soon as you're aware that your business falls within the scope of Corporate Tax.
Who Needs to Register?
- Resident Persons: All companies incorporated in the UAE.
- Non-Resident Persons: Those with a Permanent Establishment in the UAE or those earning income from Immovable Property in the UAE.
If a business no longer qualifies as a Taxable Person, it must file a Tax Deregistration application with the FTA. Deregistration only occurs when all tax liabilities and penalties are paid, and all tax returns are filed.
Penalties for Non-Compliance
Failure to submit a deregistration application within three months of cessation of business activities results in a penalty of AED 1,000 per month, up to a maximum of AED 10,000.
Case Study 1: Smooth Registration Process
Company A realized it needed to register for Corporate Tax in March. By promptly submitting their registration, they received their Tax Registration Number without any delays. This proactive approach ensured compliance and avoided potential fines.
Case Study 2: Delayed Deregistration
Company B ceased operations but neglected to file for deregistration. After three months, they incurred penalties totaling AED 3,000. This case highlights the importance of timely deregistration to avoid unnecessary expenses.
How Fastlane Can Help
Fastlane offers expert guidance to ensure your business meets all Corporate Tax registration and deregistration requirements. Our team assists with timely submissions, preventing penalties and ensuring compliance with UAE tax laws.
