Compliance with UAE Federal Tax Authority (FTA) regulations
Meeting legal requirements for doing business in the UAE.
Avoid penalties for non-registration
Ensure your business stays in good standing with the FTA and avoids costly fines.
Enhance Business Transparency
Corporate tax registration ensures that your financial operations are transparent, which can be crucial for stakeholders and investors.
Access to Government Benefits and Contracts
Registered businesses can access a wide range of government services, tenders, and incentives, contributing to business growth and sustainability.
What is Corporate Tax in UAE?
Corporate tax is a direct tax levied on the net income or profit of businesses. Here’s an overview:
Free Zones
Special tax benefits are provided for qualifying businesses located within UAE’s Free Zones, offering exemptions or reductions in tax rates.
Applicable Rates
- 0% tax for taxable income up to AED 375,000: A tax-free benefit to support small and medium enterprises (SMEs).
- 9% tax for taxable income exceeding AED 375,000: A standard tax rate aimed at large businesses with higher revenues.
- Special rates for multinational companies: Multinational enterprises meeting OECD criteria may qualify for special tax rates based on international standards and agreements.
How to Register for Corporate Tax in Dubai
Capital Plus ensures a smooth and accurate corporate tax registration process.
Gather Required Documents
Ensure you have a valid business license, provide passport copies of stakeholders, and prepare financial records for accurate tax assessment
Complete FTA Registration
Registration is done through the FTA portal. After submission, Capital Plus reviews the details for accuracy before final approval.
Documents Required for Corporate Tax Registration
Trade license copy
A copy of your valid trade license issued by the relevant authority in Dubai to prove the legitimacy of your business.
Contact details and business address
Accurate business contact details and a registered address for official communication and correspondence.
Emirates ID and passport copies of owners
The Emirates ID and passport copies of the business owners or stakeholders are necessary for identity verification.
Memorandum of Association (MOA)
A document outlining the company’s structure, purpose, and responsibilities, which is required to establish the business’s legal framework.
Audited financial statements
The most recent audited financial records provide transparency about your business’s financial status and ensure accurate tax assessment.
Additional Supporting Documents (if applicable)
Contracts, agreements, or leases related to business operations
Documents showing the business’s agreements with vendors, suppliers, or clients to verify your business activities.
Proof of business activities or transactions
Additional documents such as sales invoices, purchase records, or transaction histories that support the nature of your business and its taxable operations.
Companies with annual taxable income exceeding AED 375,000
Any company with an annual taxable income greater than AED 375,000 is required to register for corporate tax in the UAE. This ensures that businesses pay taxes based on their net income as per the federal regulations.
Free zone entities not exempt from tax
Free zone businesses that do not qualify for tax exemptions must register for corporate tax. These entities will be subject to the standard corporate tax rates unless they meet specific exemption criteria.
Branches of foreign companies operating in the UAE
Foreign companies with branches in the UAE are also required to register for corporate tax. Even though these branches operate under the umbrella of the foreign parent company, they must comply with UAE tax regulations.
Other legal entities conducting business in the UAE
This category includes other types of legal entities, such as partnerships and limited liability companies (LLCs), that carry out business activities in the UAE. These entities must also register for corporate tax if their income exceeds the threshold.
Benefits of Corporate Tax Registration with Capital Plus
Capital Plus ensures hassle-free corporate tax registration, compliance with UAE regulations, expert guidance, minimized tax liabilities, and seamless financial planning for businesses of all sizes.
Ensure Timely and Accurate Registration
Capital Plus ensures your corporate tax registration is completed on time and accurately, so you stay compliant with UAE tax laws without delays.
Avoid Penalties for Non-Compliance
By partnering with Capital Plus, you reduce the risk of fines and penalties due to non-registration or late registration, helping you stay in good standing with the Federal Tax Authority (FTA).
Enhance Your Company’s Credibility and Goodwill
Proper corporate tax registration demonstrates your company’s commitment to compliance, enhancing its credibility and goodwill in the market. This can positively impact business relationships and investor confidence.
Seamless Integration into UAE’s Tax Framework
We streamline the process of corporate tax registration, helping your business integrate smoothly into the UAE’s tax framework. This ensures that your company operates in line with all local tax regulations.
Frequently Asked Questions
The registration is done through the Federal Tax Authority (FTA) portal, which offers a user-friendly platform for businesses to complete their registration process.
The registration is done through the Federal Tax Authority (FTA) portal, which offers a user-friendly platform for businesses to complete their registration process.
Failure to register for corporate tax can result in fines, penalties, and potential legal consequences, making it crucial to complete the registration process on time.
Capital Plus provides end-to-end support, including document preparation, submission for registration, and post-registration services, ensuring a smooth and hassle-free experience for your business.
Capital Plus offers seamless corporate tax registration, ensuring compliance and allowing you to focus on business growth with expert guidance.
