YUGA Accounting specializes in delivering top-notch Corporate Tax Serives, ensuring efficient and prompt Corporate Tax Registration in UAE to adhere to the new UAE Corporate Tax regulations. Familiarizing yourself with the corporate tax laws and registration processes is crucial for all businesses operating in the UAE. Here is a detailed guide to help you navigate through this.
Registration for Corporate Tax in UAE
Taxable individuals, including Free Zone Persons, must register for Corporate Tax and obtain a Registration Number as per Federal Decree Law 47 of the FTA. Even Exempted Persons are required to register.
Corporate Tax returns must be submitted within 9 months from the end of the Tax Period, with all Corporate Taxes due for that period to be paid by the deadline.
In cases exempted by the Minister, Taxable Persons must register for Corporate Tax in a specific format and within a timeline set by the Authority.
Taxable Persons or Independent Partnerships must register for Corporate Tax and obtain a Tax Registration Number. The Tax Authority will determine the registration date for Corporate Tax once an individual becomes a Taxable Person.
After completing corporate tax registration, tax persons must pay a standard rate of 9% on taxable income above AED375,000, with a 0% rate for taxable income up to AED375,000.
How to register For UAE Corporate Tax?
The Emara Tax platform now offers pre-registration for corporate tax, as announced by the Federal Tax Authority. This online portal allows taxpayers to handle all tax-related tasks in one place, including registrations, returns, refunds, de-registrations, and payments. Users can also easily make VAT payments through the user-friendly Emara Tax portal. To access these features, individuals can create a new account or transfer their existing FTA Account to Emara Tax by following a simple login guide. Successful corporate tax registration in the UAE will involve submitting all required documents.
Requirement for Corporate Tax Registration in UAE
The UAE Ministry of Finance has introduced tax laws that can benefit companies subject to corporate tax. Registering for Corporate Tax is crucial for ensuring compliance, detecting fraud, and adhering to global standards. This can ultimately reduce post-tax profits and benefit shareholders with direct or indirect shares. Corporate tax payments offer more benefits to business owners than paying additional income tax individually.
Who is exempt from UAE Corporate Tax?
The Federal Tax Authority has mandated that Exempted Persons register for Corporate Tax, but businesses falling under this category are not required to pay any corporate tax.
There are specific exemptions from Corporate Tax that apply to certain situations:
– Employee salaries are not subject to Corporate Tax, unless the individual earns income through freelancing activities under a separate license.
– Income generated from shares, dividends, capital gains, or personal investments is exempt from Corporate Tax.
– Real estate investments are permissible in the UAE as long as the investor does not hold a business license.
– Intra-group transactions or reorganizations are not impacted by Corporate Tax.
– Foreign investors are not taxed on income from dividends, gains, royalties, or other investment returns unless derived from business activities.
Which entities need to register for Corporate Tax?
All individuals subject to Corporate Tax, including those in Free Zones, are required to complete the registration process and obtain a unique Registration Number in accordance with the UAE Law for Corporate Tax.
If your business falls under the Corporate Tax policy, it is essential to initiate the registration process and obtain a Tax Registration Number within the specified timeframe. YUGA Accounting offers professional assistance to businesses in navigating the Corporate Tax registration process.
The Federal Tax Authority mandates the registration of specific entities, such as Exempt persons and autonomous partnerships, under the Corporate Tax policy, and requires them to secure a Tax Registration Number.
Schedule for Business Tax Enrollment.
The Corporate Tax registration process will commence in early 2023. To illustrate, businesses with the initial tax period beginning in June 2023 must complete their registration by January 2023, and the deadline for filing the tax return is February 2025. Following registration, UAE businesses are granted a nine-month window after the end of each tax period to submit their tax returns and settle their Corporate Tax obligations with the Federal Tax Authority.
Corporate Tax Registration Services
YUGA Accounting has skilled tax consultants specializing in Corporate Tax registration, providing top-notch services throughout the process. Our team is experienced in Corporate Tax implementation changes, ensuring a seamless transformation. Trust YUGA for compliance updates and CT return filing assistance to avoid fines and penalties.
FOR MORE INFORMATION, CONTACT US :
Phone : +971 52 1952 532 / +971 4 240 1110
Mail-Id : info@yugaaccounting.com
Website : www.yugaaccounting.com