The Corporate Tax Law is fairly a new tax law introduced by the United Arab Emirates (UAE). This step was taken for the betterment of Economic Reforms. Introduction of Corporate Tax was a big deal for businesses in UAE as it had a significant effect on the tax landscape of the country. This blog will focus on 10 Secrets for Successful Corporate Tax Registration in Dubai.  

1. Laws and Regulations: The laws and Regulations for Corporate Tax Dubai are different than that of the other tax laws. For a successful experience it is important to understand these executive laws and regulations of Corporate Tax. For this purpose, various cabinet decisions are issued over a period. You should familiarize yourself with these laws.  
2. Engaging best Corporate Tax Consultants: For the smooth experience it would be best if you hired consultants who are known for their corporate tax registration services. ebs Chartered Accountants are one of the best choices in UAE to hire for your corporate tax services.  
3. Learn about your Category: There are different categories for taxable persons, they may be resident, non-resident or a natural person. It is important to learn the category you fall into so you may register accordingly. There are some people who are exempted from corporate tax registration, like government officials etc.  
4. Consider Corporate Tax Law Registration Deadlines: UAE is very strict about their laws and compliance. If you will not register for corporate tax on time, there will be fines and penalties. In recent amendments by the Federal Tax Authority (FTA) if you do not register by the deadline there will be a fine of AED 10,000 o your business.  
5. Distinct from VAT: It is important that you know the difference between VAT and Corporate Tax, they are two totally different things. The businesses that are involved in any commercial activities are applicable for registering for Corporate Tax even if the income is below AED 375,000.  
6. Strategic Business Structure Selection: If starting a new business in UAE, know the type of business and its core values. Select such a business that has the most advantageous structure. Once you have selected your business type, understand if corporate tax is implemented or not.  
7. Maintain Financial Records: If proper and accurate financial records are maintained they serve as the basis of smooth corporate tax registration process. If you are registering for corporate tax, make sure that all your business financial record is up to date.  
8. Keep yourself updated on any changes: Frequent changes are being made to the corporate tax law by the FTA, it is important that you know about all the changes from time to time to avoid any inconveniences.  
9. Utilize Double Taxation Treaties: These are the treaties that are established by UAE with other countries. This provides opportunities to mitigate tax impact on international transactions. Being involved in these treaties will help optimize tax incomes.  
10. Continuous Guidance by the Professionals: The Corporate Tax professionals are continuously working to make the registration and tax filing process easy for you. Keep yourself engaged with the top consultants to stay ahead of the taxation needs. ebs Chartered Accountants provide these services with their expert team, their guidance will help your business thrive with all the corporate tax laws needs and timely registration. Hire your professionals and register for corporation tax as soon as possible.  

FAQs 

Is there any deadline for corporate tax registration in UAE? 

Starting March 1, 2024, the FTA mandates that businesses holding licenses from January or February must register by May 31, 2024, to avoid non-compliance risks. In this evolving corporate tax landscape, staying ahead is not just a matter of compliance, it’s a competitive advantage.  

Who is exempt from corporate tax in UAE? 

Those exempt from corporate tax include government entities, government-controlled entities, extractive and non-extractive natural resource businesses, qualifying public benefit entities and qualifying investment funds, public pension or social security funds, or private pension or social security funds. 

Is it compulsory to register for corporate tax in UAE? 

All taxable persons are required to register for UAE Corporate Tax and obtain a Corporate Tax Registration Number as per the UAE Corporate tax law and following implementing decisions.