(FTA) Federal Tax Authority Opens Pre-Registration for Corporate Tax
The UAE is renowned for its tax-free regime, which has resulted in an influx of entrepreneurs and businesspersons from around the globe looking to establish their businesses in Dubai. However, starting from or after June 1, 2023, a new Federal Corporate Tax will be imposed on business enterprises based on their net incomes. To assist businesses, the UAE’s Federal Tax Authority (FTA) is initiating pre-registration of corporate tax through the EmaraTax platform. Eligible UAE-based businesses will receive invitations to register from the FTA via email or SMS during the early registration period from January 2023 to May 2023. This will provide registered members and businesses with digital tax services, making tax compliance more accessible and convenient.
In any country, taxes are a medium to generate the revenue needed to support services required by citizens and residents. While most of the UAE’s revenue comes from its oil reserves, taxes are levied to reduce the country’s dependence on oil and diversify the country’s resources. They are also important for the government to continue providing its citizens and expats with exceptional public services. The Federal Tax Authority, or FTA, is the regulatory body for collecting and implementing taxes in the UAE.
ABOUT THE FEDERAL TAX AUTHORITY
The Federal Tax Authority was established by virtue of Federal Law Decree No. 13 of 2016. It was issued by the President of the UAE, H.H Sheikh Khalifa bin Zayed Al Nahyan. The Federal Tax Authority, or FTA, has offices in Dubai and Abu Dhabi.
Five main points serve as the mission of the FTA:
- Promoting economic growth and sustainability in the UAE
- Increasing the UAE’s revenues apart from oil
- Reducing dependence on oil as the major source of revenue
- Achieving economic diversification with best financial practices
- Helping the business community and consumers understand their tax responsibilities
Additionally, the Federal Tax Authority imposes taxes on products and behaviours that may be detrimental to society or human health. It also imposes fines on consumers and businesses that fail to pay or report their taxes on time.
Points to be Considered for Pre-Registration for UAE Corporate Tax
The UAE’s Federal Tax Authority (FTA) has announced the early registration for corporate tax through the EmaraTax platform. FTA’s pre-registration of corporate tax will ensure digital tax services are catered to registered members and businesses. Given below are the points to consider during the preregistration of UAE corporate tax.
EmaraTax Platform
EmaraTax is the UAE’s digital tax services platform that gives users access to digital services for registration, return filing, tax payment, and refund requests. The launch of EmaraTax was a significant advancement and a key turning point in its ambitious endeavor to become the most prominent digital authority in the tax sector, representing an enormous leap toward improved taxation in the UAE.
Documents required for corporate tax registration in UAE
Businesses in the UAE should ensure corporate tax compliance by keeping financial and other records that explain the information outlined in the corporate tax return. Such papers should also be submitted to the Federal Tax Authority. (FTA). Entities exempt from UAE corporate tax will be expected to keep records in order for the FTA to determine their exempt status.
Businesses must be prepared to present the necessary documents in order to register for Corporate Tax in the UAE. The registration and payment of business taxes will be done online. The documents listed below may also be needed for Corporate Tax Registration in the UAE.
- Trade License Copies (must not be expired).
- Passport photocopy of the license’s owner/partners (must not be expired).
- License’s owner/partner’s Emirates ID (must not be expired).
- Power of Attorney (or Memorandum of Association) (POA)
- Contact information (Mobile Number and Email).
- Company contact information (complete address and P.O. Box).
- Report on the Annual Financial Audit.
Federal Tax Authority
Tax Residency Certificate: a certificate issued by the FTA upon request to enable applicants to benefit from Double Tax Avoidance Agreements (DTAA) on income signed by the UAE.
Since AHG ’s an Approved Tax Agency in the FTA of UAE and one of the leading Tax Agencies who is specialized in the Excise Tax, AHG’s Services range from Tax Registration, Tax Filing, Tax consultancy, Warehouse Keepers and Designated Zones Registration, Stock and Duty Calculation, Advice on Stockpilers, Tax Agent, Digital Tax Stamps Filing Disputes, Representation in front of the FTA of UAE