Registration and Deregistration under UAE Corporate Tax

Introduction – Chapter 16 Tax Registration and Deregistration

Chapter 16 of the UAE Corporate Tax Law mandates Taxable Persons, to register themselves under the corporate taxation regime. It provides the procedure for Tax Registration (if engaged in active business in the UAE) and Tax Deregistration (if business operations cease). Let’s take a look at them.

Article 51 – Tax Registration of a Taxable Person under the UAE Corporate Tax Law

Tax Registration is a procedure through which a person registers for the Corporate Tax with the Federal Tax Authority.

For that purpose, a unique number is issued by the Federal Tax Authority to every person that register for the Corporate Tax in UAE which is called as Tax Registration Number.

This Tax Registration Number is a unique to each Person. It forms part of the Person’s identifying information when engaging with FTA (e.g., when filing a Corporate Tax Return)

1. Mandatory Registration: Except in situations outlined by the Minister, every Taxable Person must register for Corporate Tax with the Federal Tax Authority in the manner, format, and within the time frame specified by the Federal Tax Authority.

They must also obtain a Tax Registration Number.

Exemption from Tax Registration under UAE Corporate Tax Law 

Certain entities are exempted from registration under the UAE Corporate Tax Law. These are as follows: 

• Government Entity or, 
• Government Controlled Entity or, 
• The person undertaking Extractive Business Activity as per Article 7 of the UAE Corporate Tax Law or, 

• The person undertaking Non-Extractive Natural Resource Business as per Article 8 of the UAE Corporate Tax Law or, 
• Non-Resident deriving UAE sourced income but doesn’t have Permanent Establishment (PE) in UAE. 

Note: If these persons engage in a business or business activity that is subject to UAE Corporate Tax, they will need to register for Corporate Tax with the FTA. 

2. Registration of Exempt Persons:

The Authority may also require certain Exempt Persons to register under the Corporate Tax Law and obtain a Tax Registration Number such as:

1. Unincorporated Partnerships as per Article 53 (6)
2. A Qualifying Public Benefit Entity
3. A Qualifying Investment Fund
4. A public pension or social security fund, or a private pension or social security fund
5. A juridical person incorporated in the UAE and is wholly owned and controlled by certain Exempt Persons
6. Such other person as determined by the Cabinet on suggestion of the Minister

Unincorporated Partnership: In case the FTA requires, it can ask the authorised partner in an Unincorporated Partnership to register the UIP on behalf of all partners and to provide a declaration if required by the FTA. 

3. Registration at Discretion of FTA: The Federal Tax Authority shall, in its sole discretion, register a Person for Corporate Tax with effect from the day the Person became a Taxable Person, depending on the information in its possession.

Note: This discretionary power is given to the FTA to unilaterally register someone in order to allow the FTA to administer and enforce the UAE Corporate Tax

Article 52 – Procedure for Tax Deregistration of a Taxable Person under the UAE Corporate Tax Law

Tax Deregistration is a procedure by which a person deregisters from the UAE Corporate Tax regime by filing an application with the Federal Tax Authority. The procedure for Tax Deregistration under the UAE Corporate Tax Law are as follows:

When to file for Tax Deregistration Application?

A Person with a Tax Registration Number must submit a Tax Deregistration application to the Federal Tax Authority in the format and within the timeframe specified by the Authority when its business or business activity ends or ceases, whether by way of:

• Dissolution, or
• Liquidation, or
• Any other means,

Requirements to file for Deregistration under the UAE CT Law:

A Taxable Person may not be deregistered unless it has:

• Filed all required Tax Returns, including its Tax Return for the Tax Period (for all Tax Periods active business up till cessation of business);
• Paid all Corporate Taxes due; and,
• Paid all administrative penalties due under the UAE Corporate Tax Law.

Deregistration when Application is Approved: The Federal Tax Authority must deregister the person for Corporate Tax purpose, if the Tax Deregistration Application is approved.

Effective Date of Deregistration: Such deregistration, as approved by the Federal Tax Authority on the application, shall be effective from the:

• Date of cessation of business; or,
• Any other such date as may be determined by the Federal Tax Authority.

Deregistration of Taxable Person on discretion of Federal Tax Authority: If a person violates the requirements for Tax Deregistration under this Article, the Federal Tax Authority may, on its sole discretion and based on the information in its possession, deregister the Taxable Person with effect from the later of the following dates:

1. The last day of the Tax Period on which the Authority became aware that Clause 2 of this Article’s requirements had been satisfied; or
2. The date when the Taxable Person ceases to exist.