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UAE Corporate Tax Registration for private firms starts today

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The corporate tax is about to change the tax environment in the UAE, and there have been a few updates regarding the registration for corporate tax. The Federal Tax Authority (FTA) has launched registration for corporate tax through the EmaraTax digital tax services platform starting on May 15th Monday, in line with Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses.

The Corporate Tax Law stipulates that taxable persons will become subject to corporate tax from the beginning of their first financial year which starts on or after June 1, 2023. Therefore, all taxable persons, including public joint stock companies and private companies resident in the UAE for corporate tax purposes, must register and obtain a Tax Registration Number for corporate tax purposes. It is worth noting that this registration process will not cover free zone persons, for whom corporate tax registration will be made available at a later stage. Similarly, corporate tax registration for other categories of taxable persons, such as natural persons conducting business or business activity as specified by a cabinet decision, will open at a later date.

To register for corporate tax, visit the FTA's corporate tax registration portal. However, for the time being, the corporate tax registration process will be available only to individual legal entities. Entities that would like to form a corporate tax group are required to register individually first, and then, later, they will be able to apply to form a corporate tax group on a date which will be announced later by the ministry.

Early corporate tax registration will allow enough time for companies and businesses to comply with the legal obligations related to corporate tax. It is essential for businesses to ensure that they comply with corporate tax, as the consequences of non-compliance can be severe. Taxable individuals who fail to register or file their returns on time may face hefty fines and other penalties.

It is imperative for businesses to be aware of their tax obligations and ensure that their accounts are well maintained by employing the appropriate accounting services from a proper accounting firm or an expert accountant to comply with all applicable laws and accounting standards set by the UAE. As such, engaging with an accounting firm can be beneficial for businesses looking to navigate this new tax landscape. An experienced accounting firm can provide valuable advice and guidance on how to structure their business to optimise their tax position while ensuring compliance with all relevant laws and regulations.

The introduction of corporate tax in the UAE marks a significant shift in the country's tax landscape. While it may present some challenges for businesses, early registration and compliance can help mitigate these challenges and ensure businesses continue to thrive in the UAE's competitive market. In conclusion, businesses that are taxable persons in the UAE must register for corporate tax through the EmaraTax digital tax services platform. This new law affects both public joint stock companies and private companies, with early registration strongly encouraged to allow ample time for compliance and setting up accounting services for your business. Getting help from an accounting firm in UAE can be beneficial for businesses, as they can provide valuable advice and guidance to ensure compliance with all applicable laws and regulations. Alchemist Accounting is here to help you sail through the corporate tax guidelines and ensure that your business computes corporate tax during the financial years. To get a detailed idea of corporate tax and how to prepare for it, reach out to us at +971582660929 and get a consultation with us.