Do you have a corporation that operates from the United Arab Emirates and is in need of help to know how to sail through the murky waters of corporate tax? Look no further!
To make sure you do not break the law and can fully realize the financial possibilities of your corporation, our comprehensive guide will take you step by step through the corporation tax registration process in the United Arab Emirates. We can help you in all aspects, from the fundamentals of corporation tax to preparation of documents.
Understanding the tax registration process in the UAE
Having identified whether your business needs to register for corporate tax, let us now look at the procedure for registration in more detail.
Below, we will describe in more detail each step of the corporation tax registration process in the United Arab Emirates:. Following these guidelines allows one to easily register without any hassles.
Step 1: Acquire a tax registration number (TRN)
The first step that any business in the United Arab Emirates can take to register for corporation tax is to obtain a tax registration number (TRN). This is a number specific to a company and to be used in all national tax affairs.
You will have to visit the FTA website and fill out the online form to get a TRN. The form has to be filled with company details: a legal name of the firm, its trade license number, and a way to connect. After submission, the FTA will check it and if it is in order, it will issue a TRN.
Step 2: Documents preparation for registration
Now that you have the TRN, you should prepare the documents for registration. These are general documents, but in some cases, according to the nature of the business, it becomes a little bit different:
- Trade license: a copy of the valid license to carry on with any business by relevant authorities of UAE.
- MOA: general requirements for almost any kind of business. This paper defines company activities, shareholders, and share capital.
- Passport copies: Passports of all authorized signatories, directors, and shareholders.
- Owner’s Company ID: ID copies of the owner, signed by all authorized parties
Ensure that all documents are current and valid before commencing the registration process.
Step 3: Tax registration application
Having the TRN in possession and with the required documents, you can proceed to apply for tax registration. This is done online through the FTA website. Fill out the application by providing detailed information about the company regarding its operations, revenue, and so forth, if any exemptions or special considerations are necessary.
To avoid getting delays of being served or any other issues, ensure to confirm that the information keyed in is correctly put in before applying for tax registration.
Step 4: FTA Review and Approval
After you submit the application, the FTA is going to be reviewing it. This will require patience because it could take quite some time in some instances.
The FTA will validate the information provided during the review process, for the information provided, the FTA requires further documentation, or explanation, if needed. Respond as quickly as possible to all requests from the FTA to allow the approval procedure to continue on course.
Step 5: Obtain the Corporate Tax TRN
A business, after the completion of the VAT registration process, is required to obtain a unique 15-digit TRN through the FTA website. To apply for an FTA, they must go to the website, create an account, confirm their email address, login, and select the Register for VAT option.
From there, they would need to fill out the eight-step online form for VAT registration, check the information, and submit the form for approval. Once your registration for VAT is successful, you will be able to see the TRN number and the status of the application.
Step 6: CT application (during your tax period)
If your application is successful, you will receive a tax registration certificate, which confirms that your business is now duly registered under corporate tax in the UAE. After this, one will be able to pay all the taxes of the company.
The tax amount will vary depending on the several of the variables, such as your company’s turnover and activities. You will require to get in touch with a tax specialist for the proper computation and payment of taxes for your company.
Step 7: Pay the Taxes
Common registration mistakes: Although it may appear to be a pretty simple registration many companies make a few very common mistakes. So as to avoid delays and unnecessary problems, be aware of these.
A missed deadline: Kindly be aware of the deadlines for your submissions of an application and documents, when requested. A missed deadline is cause for delay in processing and might even result in a penalty. Mistakes to avoid include:
- Incorrect or incomplete information: Make sure that you provide all required information correctly.
- Ignorance: Understand one’s tax obligations, and the registration procedure. If you feel so, don’t hesitate to engage a tax consultant for advice to help you remain on the right side of the law.
Conclusion and further reading on UAE company tax registration
Even though registering a corporation tax in the United Arab Emirates may seem complicated at first, with proper guidance and information you will definitely be able to find your way through. This way, you ensure that your company is compliant in every sense of the law and can actually maximize its financial potential.
Who should register, what to do, and what are the typical mistakes you need to avoid? And thus, being a matter of course, always remember that it is best to talk with a tax professional on matters that are going to give proper advice tailor-fit to your particular business needs.
