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Corporate Tax Registration on EmaraTax: The Complete Guide

Corporate Tax Registration on EmaraTax The Complete Guide featured img

Corporate Tax Registration on EmaraTax: The Complete Guide is a comprehensive look at the legal requirements related to corporate tax registration, documents required, procedures to follow, and mistakes to avoid. Read the article for a step-by-step guide for Corporate Tax Registration on the EmaraTax portal.

Understanding the Basics of Corporate Tax in UAE

Examples:

Who should register for Corporate Tax?

Every taxable, including Free Zone Persons, must register with the Federal Tax Authority (FTA) under the CT Law regime. Every person carrying out business or business activities in the UAE under the license must obtain a tax registration number.

Timeline for Corporate Tax Registration

All the Taxable persons must register under the Corporate Tax regime within 9 months from the end of the relevant first Tax Period.

Description of Violation
Fiscal year-end
First reporting period
CT registration and due date of filing the first CT return and payment
1
December 2023
January 2024 to December 2024
30th Sep 2025
2
June 2023
July 2023 to June 2024
31st March 2025

What is the EmaraTax Platform?

EmaraTax Platform is the Official website managed by the FTA (Federal Tax Authority of the UAE) that offers various digital services to UAE Businesses. The services include handling Tax Registration, Filing of Returns, Payment of Taxes and Applying for tax refunds under the UAE CT Law regime. Read further to know how to register for corporate tax in UAE.

What are the Documents Required for Corporate Tax Registration on EmaraTax?

Documents required for CT Registration on EmaraTax Portal:

What are the Steps for Corporate Tax Registration on EmaraTax?

Steps to apply for CT Registration on the EmaraTax Portal:

Step 1 : Create an account

on the EmaraTax portal by registering with your email ID and Phone number or logging in using your existing ID and password.

Create an account image
Step 2 : Entity Details Section
Entity Details Section image

1. Select the appropriate option for Entity Type and Entity Sub Type.

Step 3 : Identification Details
Identification Details image

1. Depending on the ‘Entity Type’ selected, you must provide the main trade license details in the identification details section.

2. Click ‘Add Business Activities’ to enter all the business activity information associated with the trade license.

3. Enter the mandatory business activity information and click on Add.

4. Click on ‘Add Owners’ to enter all the owners that have 25% or more ownership in the entity being registered.

5. Select ‘Yes’ if you have one or more branches, and add the local branch details.

Step 4 : Contact Details
Contact Details image

1. Enter the registered address details of the business.

2. Do not use another company’s address (for example, your accountant). If you have multiple addresses, provide details of the place where most of the day-to-day activities of the business are carried out.

3. If you are a foreign business applying to register for UAE CT, you may choose to appoint a tax agent in the UAE. In such cases, provide the necessary details.

Step 5 : Authorized Signatory
Authorized Signatory

1. Click ‘Add Authorized Signatory’ to enter the Authorized Signatory details.

2. Evidence of authorisation may include a Power of Attorney or Memorandum of Association for legal persons.

Step 6 : Review & Declaration

1. This section highlights all the details you entered across the application. You are requested to review and submit the application formally.

2. After submitting your application successfully, a Reference Number is generated for your submitted application. Note this reference number for future communication with FTA.

Other Important Aspects:

Is it compulsory to register for corporate tax in UAE?

Yes, every taxable person must register for corporate tax in UAE and get a corporate tax registration number.

Registration of Foreign Entity under UAE CT Law Regime:

The option for registration of foreign owners on the Emara Tax Portal has not been enabled yet. Consequently, branches of foreign companies cannot register for the UAE CT Regime through this platform. The Federal Tax Authority (FTA) will soon provide information regarding the timeline for enabling the registration of foreign owners on the Emara Tax Portal.

What are the Mistakes to Avoid During UAE Corporate Tax Registration on EmaraTax?

Incomplete Documentation:

It is to be ensured that the documents submitted support the information you entered in the application. This would help to avoid any rejection or resubmission of the application later.

Expired Documents:

Please ensure all legal documents, such as the trade license, are current and not expired when submitting your application. Expired documents will delay processing, and FTA may raise queries accordingly.

Inappropriate Information:

The applicants are supposed to provide a ‘Date of Incorporation’ while applying for CT registration. Applicants commonly make a mistake to provide a Trade License Renewal date. However, here, it is expected to provide the Date of Incorporation of the entity. Such mistakes may lead to the rejection of the CT registration application by the FTA, UAE.

Selection of Options while applying for CT Registration with the FTA:

If the entity has selected entity Type as ‘Legal persons – Other’ in VAT Registration, then at the time applying for CT Registration Application, Applicant cannot edit the Type of Entity and it will be auto populated as ‘Legal Persons-other’. And eventually such application are getting rejected by the FTA Authority and entities will have to wait for the update on the Emara Portal.

Post-Registration Responsibilities and Compliance

Regular Tax Return Filing:

Article 53 ‘Tax Returns’ provides that every taxable person is liable to file a return of income online within 9 months from the end of the tax period or by any other such date as directed by the FTA. Information to be disclosed in the tax return:

It is mandatory for the taxable person to disclose the following information in the tax return:

Exempt categories of persons are also needed to register under UAE CT Law and need to file a declaration with FTA for the same.

Due date to submit the tax return:

Return is to be filed within 9 months from the end of the relevant tax period or by such other date as may be decided by the FTA.

Audits and Assessments:

Audit & Accounts:

A taxable person with revenue exceeding AED 50,000,000 (fifty million dirhams) during the relevant tax period and a Qualifying Free Zone Person will be required to prepare and maintain Audited Financial Statements.

Taxable and exempt persons shall maintain all records and documents for a period of (7) seven years.

Assessments:

Once the taxpayer files the return of income, the next step is processing the return of income by the FTA. The FTA examines the return of income for its correctness, commonly referred to as ‘Assessment.

The FTA shall issue a tax assessment to determine the corporate tax payable, corporate tax refundable or any other matters as prescribed by the CT law and notify the taxable person within 10 business days of its issuance in any of the following cases:

1. The taxable person fails to apply for registration within the prescribed time frame;

2. The registrant fails to submit a tax return within the prescribed timeframe;

3. The taxable person fails to pay the payable tax as per the tax return submitted within 9 months from the end of the tax period;

4. The taxable person submits an incorrect tax return;

5. The registrant fails to calculate tax on behalf of another person when he is obligated to do so under the tax law;

6. There is a shortfall in the payment of tax as a result of a person evading tax or as a result of a tax evasion in which such person was involved;

7. Any other cases in accordance with the CT Law.

Penalties for Non-Compliance:

Administrative Penalties:

If the taxable person fails to submit a tax registration application within the prescribed time limit, then the administrative penalty would be as follows:-

Description of Violation
Administrative Penalty Amount in AED
Failure of the Person Conducting a Business or Business Activity to keep required records and information as per the provisions of UAE Corporate Tax Law.
One of the following penalties shall apply:
1. 10,000 for each violation OR 2. 20,000 for each repeated violation within 24 months from the date of the last violation.
Failure of the Person Conducting a Business or Business Activity to submit the data, records and documents related to Tax in Arabic to the Authority when requested.
AED 5,000

Seeking Professional Help for Tax Registration on Emara Tax

Hiring a tax consultant in the United Arab Emirates (UAE) to comply with the country’s Corporate Tax (CT) laws can offer multiple benefits. The following are a few advantages:

Smart Advice:

They know UAE tax rules inside out and talk to you like a friend, not a tax robot.

Custom Plans:

They make tax plans that fit your business like a glove—no generic stuff.

Time Saver:

They handle the tax fuss, giving you more time for your job.

No Fines, No Stress:

Keep up with deadlines, avoid fines, and wave goodbye to tax stress.

Audit Buddy:

If a tax audit happens, they’ve got your back. Less stress, more support.

Save Money, Not Spend:

Yeah, you pay them, but it’s an investment. Saves more than it costs.

Money Talk, Plain and Simple:

They explain how tax moves affect your money. No fancy talk, just straightforward advice.

Connections Beyond Tax:

Need more than tax help? They’ve got a network for legal and money matters.

So, a corporate tax consultant isn’t just an expense. It’s a wise move. They bring smarts, keep you in the tax game, and set you up for business success.

Conclusion:

The UAE government has introduced the Corporate Tax (CT) and positioned the country as a business and investment hub. It demonstrates the UAE authorities’ commitment to bringing transparency into business dealings. The introduction of corporate tax in the UAE will boost the economy and attract foreign direct investment.

Businesses in the UAE need to assess the applicability of the corporate tax law for their entities and establish sound record-keeping and compliance practices to comply with the legal requirements. The businesses need to train their staff and follow the updates and ministerial decisions issued by the UAE Federal Tax Authority.

The Federal Tax Authority maintains the EmaraTax Portal. It provides a streamlined process for Corporate Tax Registration in the UAE.

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