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Introduction:
The United Arab Emirates (UAE) has recently implemented a corporate tax regime, requiring all eligible taxpayers to register and fulfill their tax obligations. In this blog post, we will explore the key aspects of UAE Corporate Tax Registration, filing returns, and tax liability and payment under the UAE corporate tax system.
UAE Corporate Tax Registration Process
Taxpayers are required to register for corporate tax under the UAE corporate tax system, even if they are already registered for Value Added Tax (VAT). This registration is mandatory for all taxpayers and involves obtaining a Corporate Tax Registration Number. The Federal Tax Authority may also request certain Exempt Persons to register for corporate tax.
To register for UAE Corporate Tax Registration, taxpayers can conveniently do so electronically through the Federal Tax Authority’s website before they file their first corporate tax return. Importantly, there is no registration threshold, meaning all eligible entities must comply with the registration requirements.
Corporate Tax Filing UAE: Filing Returns Made Easy
Only one Corporate Tax Filing UAE return needs to be filed for each tax period. This return is typically due within 9 months following the end of the tax period. Unlike other tax systems, no provisional or advance corporate tax filings are required. Taxpayers can file their corporate tax returns electronically, which simplifies the process for them.
It is essential to note that a corporate tax return must be filed regardless of whether a profit was made. Even if a taxpayer incurred tax losses, filing a corporate tax return allows them to use these losses to offset taxable income in future years.
Tax Grouping for Corporate Tax Filing UAE
Companies that meet the specified requirements can form a Tax Group and file a single Corporate Tax Filing UAE return covering all the group members. This approach reduces administrative burdens and simplifies the tax compliance process. In the event that companies cannot form a Tax Group, each entity will need to file a UAE Corporate Tax Registration return on a standalone basis.
Tax Liability and Payment for Corporate Tax Filing UAE
Operating under a self-assessment regime, the UAE corporate tax system places the responsibility of calculating, reporting, and paying taxes on the taxpayers themselves. Corporate tax liabilities generally need to be settled before the end of the 9 months following the conclusion of the relevant tax period.
Unlike VAT and other tax obligations in the UAE, businesses do not need to make advance corporate tax payments. The tax liability for a specific period must be settled by the end of the 9th month after the conclusion of the relevant tax period. Relevant authorities will provide detailed information regarding approved payment methods.
Compliance and Penalties in UAE Corporate Tax Registration
As with other tax systems in the UAE, businesses are subject to penalties for non-compliance with the corporate tax regime. Taxpayers must understand and adhere to the compliance obligations imposed by the UAE corporate tax system. Further guidance on these obligations, as well as the applicable penalties for non-compliance, will be released by the relevant authorities in due course.
Conclusion: Understanding UAE Corporate Tax Registration and Corporate Tax Filing UAE
The introduction of the UAE corporate tax regime requires all eligible taxpayers to register and fulfill their tax obligations promptly. By understanding the UAE Corporate Tax Registration process, filing requirements, and payment procedures, businesses operating in the UAE can ensure compliance. Staying up-to-date with the guidelines and announcements from the Federal Tax Authority will help businesses avoid potential penalties.
Registered Tax Agency and Agents
Tax Agency Registration Name: PARKER RUSSELL OBAID AUDITING
Tax Agency Registration Number: 30000269
Tax Agent Registration Name: Mansour Abdulwahab Mohamed Ahmed
Tax Agent Registration Number: 20037867
To speak with our corporate tax expert kindly email us at: infodubai@pr-uae.com or sales@pr-uae.com
