The Federal Tax Authority (FTA) has announced that the registration for Corporate Tax in the United Arab Emirates (UAE) will commence on Monday, May 15. This registration process will be facilitated through the EmaraTax digital tax services platform, specifically for Public Joint Stock Companies and Private Companies.
Background Information on
Corporate Tax Law
The launch of the registration process
aligns with Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations
and Businesses, commonly known as the Corporate Tax Law. According to this law,
Taxable Persons, which include Public Joint Stock Companies and Private
Companies, will be subject to Corporate Tax from the beginning of their first
financial year that starts on or after June 1, 2023.
Mandatory Registration for
Taxable Persons
To comply with the Corporate Tax Law, all
Taxable Persons must register and obtain a Tax Registration Number for
Corporate Tax purposes. The FTA has extended an invitation to all Public Joint
Stock Companies and Private Companies resident in the UAE for Corporate Tax
purposes to register with the FTA. However, it's important to note that Free
Zone Persons will have access to Corporate Tax Registration at a later stage.
Registration for Other
Categories of Taxable Persons
While the current registration process
covers Public Joint Stock Companies and Private Companies, the FTA has stated
that registration for other categories of Taxable Persons, such as natural
persons conducting Business or Business Activity, will open at a later date.
The specific details and timeline for registration in these categories will be
determined by a Cabinet Decision.
Benefits of Early Corporate Tax
Registration
The FTA emphasizes that early Corporate Tax
registration allows companies and businesses sufficient time to fulfill their
legal obligations. By registering early, entities can ensure compliance with
the Corporate Tax Law and avoid any potential penalties or legal consequences.
Corporate Tax Registration
Process for Legal Entities
Initially, the Corporate Tax registration
process will be available to individual legal entities only. Entities
interested in forming a Corporate Tax Group will need to register individually
first. At a later date, these entities will have the opportunity to apply for
the formation of a Corporate Tax Group.
Guide by the UAE Ministry of
Finance
To assist individuals and entities with
understanding the intricacies of the upcoming Corporate Tax system in the UAE,
the Ministry of Finance has issued a comprehensive guide. This guide provides
detailed information on all aspects of the Corporate Tax, enabling taxpayers to
navigate the new regulations effectively.
By opening the registration process for
Corporate Tax, the UAE aims to facilitate a smooth transition for businesses
and ensure compliance with the Corporate Tax Law.
