Corporate TAX Registration in the UAE
The United Arab Emirates (UAE) has introduced corporate tax to diversify its economy and reduce reliance on oil revenues. As of June 2023, the UAE levies a corporate tax on the net profits of businesses. This tax applies to most types of businesses, including those in free zones and mainland areas. However, certain sectors, such as oil and gas, may be subject to different tax rates and regulations.
Corporate Tax Registration Process
Company Tax Registration
Company tax registration in the UAE is a vital step following the initial company registration. Although the UAE is known for its favourable tax environment, with no corporate tax on most entities, companies must still comply with the Federal Tax Authority (FTA) regulations. Companies that produce oil and gas or operate international bank branches are among the businesses that must pay corporate tax. Also, if a company’s taxable exports and suppliers reach the required yearly register threshold, it must sign up for Value Added Tax, or VAT. A Tax Registration Number (TRN), which is necessary for collecting and sending VAT to the FTA, must be obtained as part of the VAT registration procedure.
FTA Tax Registration Overview
In the UAE, federal taxes such as VAT and Excise Tax are overseen by the Federal Tax Authority (FTA). Companies that generate more than AED 375,000 in revenue annually are required to register online with the FTA.