How to Register for Corporate Tax in UAE via EmaraTax Platform

Before registering for corporate tax in the UAE, it’s essential to understand the process thoroughly. You can also download the user manual to guide you through corporate tax registration. Corporate tax in the UAE is a tax levied on the income of a business entity, effective from June 2023.

What is UAE Corporate Tax?

Corporate tax is charged on a company’s income at a rate of 9% for taxable income above AED 375,000 and 0% for income up to AED 375,000.

The introduction of corporate tax in the UAE serves multiple purposes:

• Strengthening the UAE’s position as a global business hub
• Stimulating business growth to achieve strategic goals
• Ensuring compliance with international tax standards and preventing tax evasion

Where to Register for Corporate Tax in the UAE?

Businesses must register for corporate tax through the EmaraTax platform, managed by the Federal Tax Authority (FTA). Companies can log in using either their FTA credentials or a UAE Pass.

Only eligible taxable persons can register for corporate tax, either mandatorily or voluntarily, as per the Federal Law on taxation. You can access the EmaraTax portal for vital details about the registration process and the platform’s usage.

The EmaraTax system integrates with other governmental entities, such as the Central Bank, and UAE-based tech programs like UAE PASS to improve user experience. It is accessible, user-friendly, and provides enhanced self-help options for registration, VAT payments, and compliance. Mobile device support for EmaraTax will also be available soon.

Steps to Register for Corporate Tax

Here’s how to register for corporate tax on EmaraTax, ensuring compliance:

1. Login: Access EmaraTax using your credentials or UAE Pass. Once logged in, navigate to your dashboard. If no taxable persons are associated with your account, click “Create” to add a new taxable person.
2. Register for Corporate Tax: On the dashboard, click ‘Register’ under the Corporate Tax section. Read and agree to the instructions.
3. Start the Application: Click ‘Start’ to begin your corporate tax registration process. The application consists of multiple sections that need to be completed. A progress bar will show your completion status.
4. Select Entity Type: Choose the appropriate entity type for your business. The fields will vary based on the selected entity type. Currently, only UAE Public Joint Stock Companies and UAE Private Companies (including establishments) can register, but more options will be added.
5. Save Progress: You can save your application as a draft and return to it later if needed.
6. Provide Identification Details: Enter your business trade license details based on the selected entity type.
7. Add Business Activities: List all the business activities covered under your trade license and proceed.
8. Add Owners: Include details for any owner holding at least 25% ownership in the business.
9. Branch Details: If your business has branches, enter their details. Note that registration will be in the name of the head office, even if branches perform operations.
10. Contact Information: Provide your business’s registered address, ensuring accuracy. If you’re a foreign business, appoint a tax agent in the UAE.
11. Authorized Signatories: Add authorized signatories for your company, along with supporting documents like Power of Attorney or Memorandum of Association.
12. Review & Submit: Review all provided information, declare its accuracy, and submit the application. You will receive a reference number for tracking the status of your submission.

Post-Registration Process

After submission, the FTA will notify you via email if further information is required. Upon approval, you will receive a confirmation email, and the status of your application will be updated on your EmaraTax dashboard.

Corporate Tax Services by Ez Bizz Corporate Services LLC

At Ez Bizz Corporate Services LLC, our experienced corporate tax consultants can help you navigate the corporate tax registration process in the UAE. We ensure compliance with all FTA requirements and assist you in obtaining your Tax Registration Number (TRN). We also offer tax advisory services, helping you file corporate tax returns, prepare annual tax reports, and handle any audits or disputes with the FTA.

Frequently Asked Questions (FAQs)

What is EmaraTax? EmaraTax is a digital platform for tax registration, filing returns, making payments, and managing refunds in the UAE.

How do I pay taxes on EmaraTax? To pay taxes via EmaraTax:

1. Log in to the EmaraTax portal.
2. Navigate to ‘My Payments.’
3. Choose ‘Select & Pay’ for specific payments or ‘Pay All’ to pay all liabilities.
4. Select a payment method, such as GIBAN or FAB Magnati Pay.

Do I need to register for UAE corporate tax? Yes, every business in the UAE, regardless of size or industry, is required to register for corporate tax.

What is the corporate tax rate in Dubai? Corporate tax is levied at 0% for income up to AED 375,000 and 9% for income exceeding that amount.

Who needs to register for corporate tax in the UAE? All businesses subject to corporate tax must register and obtain a unique tax registration number. This includes businesses operating in Free Zones under certain conditions.

How is corporate tax calculated? Corporate tax is calculated by determining the taxable income, subtracting allowable deductions, and applying the tax rate. The formula is:

Corporate Tax Liability = (Adjusted Gross Income – Deductions) x Corporate Tax Rate