The Federal Tax Authority (FTA) launched early registration is available through the EmaraTax platform from Jan to May 2023 for certain categories of companies operating in the UAE.
The UAE’s Federal Tax Authority (FTA) on Sunday announced that it launched early registration for corporate tax through the Emara Tax platform to ensure digital tax services to the registered members and businesses.
The authority explained that the early registration period is available from January 2023 to May 2023 for certain categories of companies operating in the UAE. These selected companies will be receiving invitations from the FTA by email and SMS, allowing them to register via the Emara Tax platform.
Who can Register
- All businesses including free zones, companies and individuals would be required to register even if the taxable income is below the threshold of Dh375,000 per annum or exempt.
- And Businesses are not required to take any action on corporate tax registration as of now unless they received an “invitation to register” during the Jan-May period.
- No penalties relating to registration may be imposed if the businesses ensure to register at least before the due date for tax return submission (i.e. 9 months from the end of the relevant financial year).
- If the individuals had business licence and conduct commercial activity like working as an owner of the sole establishment, civil company etc., such businesses are liable to register for tax, and their taxable income will be subject to corporate tax.
- No corporate tax will apply on salaries or other personal income from employment — be it in the government, semi-governmental entities or the private sector.
Ample time for registration
- When registration opens, priority will be given to companies and businesses that have a financial year starting on June 1, 2023.
- The FTA will make sure to give ample time for companies and businesses to apply for registration and meet their legal obligations.
- After the pre-registration phase, the FTA will announce at a later date when registration will be open for other companies and businesses.
Corporate tax rates
The Corporate Tax Rates are applicable based on the below table:
For Example:
- Taxable income of AED 0 – AED 375,000 at 0% = AED 0.
- If a business has earned taxable income of AED 400,000, then AED 400,000 – AED 375,000 = AED 25,000 at 9% = AED 2,250.
To Know more information provided by the FTA about registration for corporate tax in due course, and more details about Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations, Click Here!!
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