corporate tax registration
The Federal Tax Authority announces corporate tax registration for public joint-stock companies and private companies, starting from Monday, May 15, 2023. This announcement is in accordance with Federal Decree No. (47) of 2022, which emphasizes the importance of imposing corporate tax on companies and businesses in the United Arab Emirates.
Through this new tax system, companies have the opportunity to register and obtain a tax registration number, aiming to ensure legal compliance, enhance financial transparency, and provide further government support to registered companies.
Table of Contents
This decision represents an important step towards enhancing the business environment in the country and reinforcing its position as a pivotal investment destination on a global level. With this announcement, the Federal Tax Authority opens the door for companies to join the corporate tax system and benefit from its significant advantages, fostering economic growth and supporting the development of businesses in the country.
The objective of the corporate tax registration law
This step comes in response to Federal Decree-Law No. 47 of 2022 regarding corporate and business taxation. Its aim is to provide the corporate tax registration opportunity for registration and obtaining a tax registration number for corporate taxation purposes.
The Authority urges all public shareholding companies and private companies in the UAE to proceed with registration and comply with the legal obligations related to corporate taxation. It clarifies that registration for other categories of taxpayers, including individuals conducting business or commercial activities in the country, will be opened at a later time.
Emphasis is placed on the importance of early corporate tax registration registration to enable companies and businesses to comply with the law and prepare in advance for tax compliance. It should be noted that the registration process is currently available only for individual legal entities, which must register individually before applying to form a tax group at a later time.
Benefits of corporate tax registration
1. Compliance with Tax Legislation: Registering for corporate tax allows UAE companies to comply with local tax laws and regulations. As a result, they can avoid legal risks and potential penalties that may arise from non-compliance.
2. Enhanced Financial Transparency: Registration in corporate tax promotes financial transparency and credibility for companies by providing a specific framework for financial disclosures and tax reports. This increases the confidence of investors, clients, and business partners.
3. Access to Government Services: Registering for corporate tax enables UAE companies to benefit from a wide range of government services available to registered companies. This includes accessing government support and assistance regarding projects, expansion, and addressing financial challenges.
4. Building Trust and Credibility: Registering for corporate tax helps build trust and credibility in the company’s operations by having a reliable tax framework and complying with specific tax standards and procedures.
5. Global Expansion Opportunities: Registering for corporate tax opens doors for UAE companies to expand globally. It allows them to take advantage of international trade agreements and financial and investment services available to registered companies within the system.
In summary, registering for corporate tax provides multiple benefits for UAE companies, ranging from legal compliance to enhancing trust and expanding business opportunities domestically and internationally.
To register for corporate tax, please visit the Corporate Tax Registration Portal by clicking here. For more information, please visit the Frequently Asked Questions (FAQ) page on the Federal Tax Authority’s website by clicking here. You can also contact the customer support team at the phone number 800 82923.
