Whether you have a company in the UAE or many other countries in the world, one thing is for sure. Corporate tax registration is a must if you wanna run legal and spotless business in those countries. So today, we’re gonna talk about that! Why is tax registration a must? Who needs to do it? We’re gonna answer these questions and more if you keep on reading. So, if you’re ready to take your tax knowledge to the next level, hop in!
Why Is Corporate Tax Registration Important?
First of all, and obviously, tax registration ensures that companies comply with the tax laws of the country they operate in. Secondly, it ensures that all operations are transparent and that the company is financially accountable for those operations. And finally, it ensures that your company doesn’t face penalties for not complying with regulations or for late registration. These all kinda no-brainers, but you’d be surprised by how much these reminders are a must.
Who Should Register in the UAE? And Who Is Exempt?
Naturally, local companies must register, along with foreign companies that have branches in the UAE. In addition to that, companies that operate in the Free Zone must register for corporate tax. However, these have specific conditions and regulations since they operate in the Free Zone.
As for exemptions, all governmental entities and companies that are controlled by the government are exempt. And we should add to the mix non-profit organizations for obvious reasons. Finally, businesses that earn below the minimum taxable income are also exempt. If you wanna learn more about that, check out our corporate tax article where we break down the numbers!
Corporate Tax Registration Process
The Big When
The FTA, or Federal Tax Authority, requires companies and businesses to register for corporate tax before the first taxable period starts. This taxable period depends on how the fiscal year of each company works, and that also falls under FTA regulations. On the other hand, once you submit your application, it takes the FTA about 20 working days to process it.
The Process
The registration process involves the following steps:
- First off, you have to login to the official website of the FTA.
- Next, you have to submit information about your business. That includes your trade license number, business activities, your company’s legal structure, and naturally, details about the owner of the company. And if the owner is a UAE resident, the info should include their Emirates ID.
- After this step, you should include some more documents like your company’s financial statements, a memorandum of association, certificate of incorporation, and a copy of the trade license.
- Finally, once you successfully register, the FTA will issue your company a unique Corporate Tax Registration Number (CTRN).
Wanna Avoid the Hassle of Corporate Tax Registration?
It’s never a walk in the park for companies to gather all the documents and then file them. Now, what if we told you that you can delegate this task to an external party that can handle all the process? Here at Noraal, we can handle all your financial needs and get the job done well! So make sure you check out all the services we have to offer while you decide if you wanna save yourself the effort and time it takes to get everything in order!