5 Steps For Your Tax Registration Process In UAE

The UAE stands out on the international scene due to its unique corporate tax system. Unlike many other countries, the UAE exempts the vast bulk of commercial enterprises from federal corporate income tax. The UAE’s strategic location draws in investors from all over the world.

In the UAE, 

• Companies are not subject to taxation if their profits are less than 3,75,000 AED. This suggests that there is no tax in this case.

• Business profits over 3,75,000 AED are subject to a regular 9% tax rate. 

Suggested read: What are the new corporate tax rules in Dubai 2024?

Steps in the Tax Registration Process

Step 1: Determine the corporate tax registration eligibility 

The initial step involves evaluating who qualifies for company tax registration. The following people are responsible for corporate tax:

• Foreign legal companies are structured and manage the majority of their business in the United Arab Emirates, together with commercial and other law firms registered in the country.

• Corporate and income taxes for businesses are permanent establishments; non-resident juridical persons (foreign entities) are their residence status.

• In addition to this necessity, several non-resident individuals are receiving income from the state.

• Residents or companies not subject to taxation have formed an economic tie with the UAE through the lawful acquisition of Income from Immovable Property.

• Natural persons including sole proprietorship have a turnover of AED 1,000,000 or more in the Gregorian calendar year.

Step 2: Collect the Necessary Documents

Before starting the registration procedure, you need to get ready with the necessary documents. These could be 

• Copies of your trade license 

• Passport copies 

• Emirates ID

• Owner’s Company ID

• Memorandum of Association (MOA), etc.

Step 3: Tax Registration Number (TRN) Application

First, to register for corporate tax in the UAE, one must apply for a tax registration number or TRN. This number is specific to your company and is required to complete any tax-related transactions in this nation. 

To apply for a TRN, you should go through the official Federal Tax Authority (FTA) online application process. After submitting this form, the FTA will review your application; if all appears well, you will receive a TRN.

Complete these processes:

• Go to the e-Services portal of FTA 

• Create a User Account 

• Finish the Registration Form 

Step 4: Approval From FTA 

The FTA will review the application’s following sections as they review the one you filed. Patience will be required because there will be occasions during this procedure when it might take some time. It often takes a few business days for this.

During the review process, the FTA will verify the data provided and, if needed, request additional supporting documentation or clarification. Inquiries from the FTA should be addressed promptly for the approval process to go well. 

Step 5: Get the TRN and File for CT

Upon completing and approving your registration application, you will be issued a tax registration number or certificate.

Businesses must first complete the registration process to obtain a unique 15-digit TRN via the FTA portal. Once they have the certificate, they can proceed with paying their corporate taxes.

Read our blog on Things You will stumble while creating registering for Corporate tax

Contacting a tax professional is advised to ascertain and fulfill all tax obligations that pertain to corporate businesses.

Connect with us for more information on corporate taxes in UAE and how to comprehend them to avoid late registration and penalties. 

Please read: UAE Tax Laws: What Every Business Owner Should Know