With the new corporate tax uae rules now in force, all businesses carrying out their business in the United Arab Emirates must take appropriate steps to register for corporate tax in a timely manner, and ensure compliance to avoid penalties or issues evening staying operational as the corporation, after registering.
This article seeks to outline a complete how-to guide in registering for corporate tax in the UAE, with important information, evidence-based documentation and timelines, and professional advice from the experts at SAConsultantsuae.
What is Corporate Tax in UAE?
Corporate tax UAE is a direct tax on the net income of a corporation, or other business establishments. The UAE Goverment introduced a corporate tax of 9%, levied only on profits above AED 375,000. Profits below this amount are tax-free – in recognition of the need for small businesses and startups to grow. Likewise, it is the intention of the UAE government that with this introduction, the UAE government upholds international tax agency standards by following proper tax reporting and compliance. Furthermore, the UA governments intention is that this addition, and other similar taxes assist in bringing consistency and transparency across the tax system and help diversify the economy.
Who is Required to Register?
If a business meets any of the below conditions, the company must carry out the tax registration.
UAE Established Entities (both mainland and free-zone) with taxable income.
Foreign Companies with a permanent establishment in the United Arab Emirates.
Individuals performing business activities under a commercial license.
Free Zone Companies (without qualifying exemptions).
Even if your business believes it is eligible for exemptions from corporate tax, that business will still need to complete the corporate tax UAE registration process to verify its status.
Step-by-Step Guides: How to Register for Corporate Tax
Establish an Account on EmaraTax Portal
The Federal Tax Authority, has established EmaraTax, in which all tax registration services are carried out. You will first need to register your business in the EmaraTax portal, which requires simply providing basic business details and setting up user credentials.
Complete Corporate Tax Application
After the EmaraTax account is established, navigate to the “Corporate Tax” section of the portal and complete the registration form. The following documents will be needed:
Trade License.
Memorandum of Association.
Passport and Emirates ID of owners/partners.
Financial statements, if available.
Business contact details.
Confirm that all details are accurate and up to date, as inaccuracies will take longer to confirm and delay the proces
3. Submit the Application
After uploading all required documents, submit your application. You’ll receive an acknowledgment receipt. The FTA typically processes applications within 20 business days, although this may vary.
4. Receive the Tax Registration Number (TRN)
Once approved, you will be issued a Tax Registration Number (TRN) for corporate tax purposes. This TRN is different from your VAT TRN (if your business is VAT-registered), though both must be maintained accurately.
5. Maintain Compliance Post Registration
Registering is just the first step. Businesses must now file annual tax returns, maintain accounting records, and comply with any ongoing reporting obligations under UAE tax laws.
Relation Between VAT and Corporate Tax
While UAE VAT registration and corporate tax are separate regimes, both require businesses to be transparent in financial reporting. VAT focuses on consumption tax and is applicable to the sale of goods and services, while corporate tax targets profits.
If your business is already UAE VAT registered, your financial systems may already support tax compliance frameworks, making it easier to incorporate corporate tax requirements. SAConsultantsuae advises companies to integrate both systems for seamless compliance and reporting.
Common Mistakes to Avoid
- Delaying tax registration: The FTA has set specific deadlines; late registration can result in fines.
- Incorrect classification of income: Misreporting can lead to audits or penalties.
- Assuming exemption without registration: Even exempt businesses must go through the registration process to receive confirmation from the FTA.
- Mixing VAT and corporate tax records: These should be maintained separately to ensure clarity.
Why Choose SAConsultantsuae?
Navigating tax registration and corporate tax UAE procedures can be challenging, especially for SMEs and startups. SAConsultantsuae are trusted accounting experts in Dubai with extensive experience in helping businesses register and remain compliant with both UAE VAT registration and corporate tax regulations.
Their team ensures:
- Hassle-free documentation
- On-time submission and registration
- Strategic tax planning
- Continuous support for audits and return filings
Whether you’re a new business or an existing one adjusting to new tax rules, partnering with SAConsultantsuae ensures you remain compliant while focusing on growth.
Conclusion
This implementation of corporate tax in UAE highlights how the region is evolving a contemporary finance landscape. In the case of corporate tax registration, early registration, which means legally registering your business for tax, and accurate registration steps, means that your business can continue to operate and avoid any stakeholder or legal penalties. Take no chances and do not leave registration until the last minute. Gather your documents, get registered for tax, and seek professional advice if needed.
SAConsultantsuae is your one-stop trusted partner for ensuring bc you have been registered legally in UAE VAT and Corporate Tax. So, you can rest assured that we are taking care of your needs, while you take care of what’s most important… Growing your business.
