How to Register for Corporate Tax in the UAE?

The Federal Tax Authority (FTA) has streamlined the registration process through its online portal (eservices.tax.gov.ae). The following steps provide a clear path for businesses to become compliant.

Step 1: Confirm Status and Tax Period

Before starting, a business must confirm its status as a “Taxable Person.” It must also identify its “Tax Period,” which is its financial year. For most businesses, this aligns with the calendar year (January 1 to December 31). For a business with a Jan-Dec financial year, its first tax period began on January 1.

Step 2: Gather All Required Documents

Preparation is key. The business must gather a clear set of documents before accessing the portal. The “Required Documents Checklist” section below provides a detailed list. Key items include the trade license, the Emirates IDs of owners, and the company’s Memorandum of Association (MOA).

Step 3: Access the EmaraTax Portal

The corporate tax registration in the UAE is done exclusively through EmaraTax, the FTA’s digital tax services platform. A company representative (e.g., director, owner, or authorized tax agent) must log in using the company’s existing EmaraTax account. If the business is new to the FTA and does not have a VAT registration, it must first create a new user profile and then create an account for the Taxable Person (the company).

Step 4: Fill in the Registration Details

The online application form guides the user through several sections. The applicant must fill in the details accurately:

• Entity Details: Legal name, trade license information, and date of incorporation.
• Identification: Tax Registration Number (TRN) for VAT (if applicable), and establishment card details.
• Contact Details: The company’s address, phone number, and email.
• Business Activities: The primary and secondary activities as listed on the trade license.
• Ownership: Details of the owners, shareholders, or partners, including their Emirates ID or passport information.
• Tax Period: The company must declare its financial year start and end dates.

Step 5: Submit and Receive a Corporate Tax Registration Number (CTRN)

After filling in all details and uploading the required documents, the applicant must review the information for accuracy and submit the application. The FTA will then review the application. Upon approval, the FTA will issue a unique Corporate Tax Registration Number (CTRN), which serves as the business’s official tax ID for all corporate tax matters.

Step 6: Fulfill Post-Registration Obligations

Registration is only the beginning. After receiving the CTRN, a business must maintain accurate financial records and stay compliant with FTA guidelines. It must also inform the FTA of any changes, such as an update in address or ownership, and prepare for its first corporate tax filing.

The timeline for the corporate tax in the UAE is a critical aspect of compliance.

Effective Dates and First Tax Period

The law applies to financial years starting on or after June 1, 2023. This means:

• A company with a financial year from June 1, 2023, to May 31, was in the first group to be taxed.
• A company with a financial year from January 1 to December 31 has its first tax period starting on January 1.

Corporate Tax Registration Deadlines

The FTA has set clear deadlines for registering the corporate tax. These deadlines are not based on the company’s financial year. Instead, FTA Decision No. 3 of 2024 links the deadline to the month the company’s original trade license was issued.

Here is a simplified summary of the deadlines for companies that existed before March 1:

For new businesses incorporated on or after March 1, the registration must be completed within three months from the date of incorporation or license issuance.

To ensure a smooth registration, businesses should prepare the following documents in digital format (e.g., PDF) before starting the application:

• Trade License: A clear copy of the valid trade license (or licenses, if there are multiple branches).
• Establishment Card: A copy of the company’s establishment card.
• Legal Documents: The company’s Memorandum of Association (MOA) or Articles of Association (AOA).
• Owner/Shareholder IDs: Clear copies of Emirates ID (for UAE residents) and passports (for all partners and the authorized signatory).
• Contact Information: The official company address, phone number, and PO Box.
• Financial Information: The company’s financial year start and end dates. The FTA may also ask for the most recent audited financial statements, if available.
• VAT Details: The company’s VAT Tax Registration Number (TRN), if the company is registered for VAT.

Tips for Applicants:

• Ensure all document copies are clear and legible.
• Double-check that the legal name on the application matches the trade license exactly.
• Fill in all fields; incomplete applications will be rejected.
• For foreign shareholders, ensure passport copies are clear and all names are spelled correctly.

The corporate tax in the UAE has specific rules for different business structures.

Free Zone Entities

This is a critical area. All Free Zone entities must register for corporate tax, regardless of their status.

• Qualifying Free Zone Person (QFZP): A free zone company that meets specific conditions (like earning “qualifying income” and maintaining adequate substance) can benefit from the 0% tax rate.
• Non-Qualifying Income: If a free zone company earns income from the mainland (with some exceptions) or other non-qualifying sources, that specific income may be subject to the 9% tax.
  Registration is the first step to being assessed and potentially claiming the 0% benefit.

Foreign Branches

A branch of a foreign company operating in the UAE is generally considered a “Permanent Establishment” of its parent company. The branch must register for corporate tax in the UAE. Its profits will be taxed based on the income generated from its UAE operations.

Exempt Persons

As mentioned, government entities and certain public benefit organizations are exempt. However, they must still complete a corporate tax registration in the UAE application to the FTA to officially request and confirm their exempt status. They do not get an automatic exemption.

Business Changes and Tax Groups

• Tax Groups: Two or more companies (a parent and its subsidiaries) can apply to form a “Tax Group” and file a single tax return. Both companies must be registered first.
• Mergers/Acquisitions: Any change in legal structure or ownership must be updated on the EmaraTax portal.

VAT Linkage

VAT registration and corporate tax registration are two separate legal obligations. A company with a VAT Registration Number (TRN) must still complete the separate application to register for corporate tax and obtain a Corporate Tax Registration Number (CTRN).

Receiving a CTRN is the start of the compliance journey. Businesses must adhere to new responsibilities:

• Accounting Standards: All businesses must maintain accurate and complete financial records. The law mandates that financial statements should generally be prepared based on International Financial Reporting Standards (IFRS).
• Tax Filing and Payment: A business must file its corporate tax return and pay any tax due within 9 months after its tax period ends.
  • Example: For a tax period ending December 31, the tax return and payment are due by September 30, 2025.
• Audit and Transfer Pricing: Businesses with revenue exceeding a certain threshold (yet to be specified by a Cabinet Decision) must have their financial statements audited. Businesses with transactions between “Related Parties” (e.g., between two companies owned by the same person) must comply with Transfer Pricing rules.
• Penalties: The FTA has established penalties for late filing, late payment, and incorrect tax returns.

The introduction of corporate tax in the UAE is a significant maturation of the country’s economy. While the 0% threshold protects small businesses, the law establishes a universal mandate for all companies to formalize their financial reporting.

Key takeaways for every business owner are:

1. Registration is Mandatory: Every business, including free zone entities, must complete the corporate tax registration in the UAE.
2. Deadlines are Strict: Deadlines depend on the license issue month, and missing them incurs a penalty of AED 10,000.
3. Record-Keeping is Non-Negotiable: The law requires all businesses to maintain accurate financial records based on IFRS standards.
4. Registration is Separate from Filing: The current deadlines are for registration. The deadline for filing the tax return and paying tax comes later (9 months after the end of the first tax year).

Completing the process of how to register for corporation tax is the first and most important step toward ensuring compliance and securing a business’s legal standing in the new tax environment.

For more information or assistance with your corporate tax registration in the UAE, feel free to Contact Us. Our team is here to help guide you through the process.