Corporate Tax Registration

Corporate Tax Registration in UAE

 

All companies in UAE shall register for Corporate Tax including FZ companies. Any reliefs (Small business reliefs, business restructuring reliefs, qualifying group reliefs etc.) are applicable only while filing the Corporate Tax returns. Below table will give a clarity on the taxability and registration requirements as per UAE Corporate Tax.

Status
Person
Taxability on Income
Registration & return filing for CT requirement
Remarks
Juridical
Worldwide Income will be taxable except exempt income
Yes
Resident Person*
Natural
Income from UAE through business or business activity and Income from outside UAE which connected with business activity in the UAE.
Yes, If the annual turnover (from Jan to Dec) is more than 1 Million Dirham
Income from Salary, Wages, Real Estate Investment & Personal investment (which does not require a license), are not considered while checking the threshold of 1 Million Dirham
Permanent Establishment
Yes
Income attributable to the PE will be taxable in UAE
Juridical
Income through Nexus in UAE
Yes
Income from Immovable Property located in UAE is currently classified as Nexus
Non-Resident
Yes
Yes
Income attributable to the PE will be taxable in UAE
Natural
UAE Sourced Income**
No
Withholding tax applicable (Currently it is 0%)
UAE Sourced Income**
No
Withholding tax applicable (Currently it is 0%)

Below are considered as Resident Person for Corporate Tax purpose

All companies incorporated / established recognized as per UAE applicable legislation.

A company which is incorporated / established recognized as per the foreign legislation, but effectively managed and controlled in the UAE.

A Natural person who conducts business or business activity in UAE.

UAE Sourced Income – Some examples

Income from the sale of goods in the state
Income from services rendered or utilized or benefitted from the UAE
Income from movable or Immovable property in the UAE.
Income from sale of shares of a resident person.
Income from contract performed in the UAE.
Income from use or right to use of intellectual or intangible property in the UAE.
Interest earned from UAE subject to conditions
Insurance or reinsurance premium earned from UAE subject to condition.

Frequently Asked Questions

All Taxable Persons will be required to register for UAE Corporate Tax and obtain a Corporate Tax Registration Number. Non-Resident Persons earning State Sourced Income that do not have a Permanent Establishment or nexus in the UAE do not need to register. This is because they will not have a Corporate Tax liability in the UAE and their home jurisdiction will have primary taxing rights. Persons seeking to be exempt from Corporate Tax upon application to the Federal Tax Authority (for example an investment fund seeking to be treated as a Qualifying Investment Fund) must first register with the Federal Tax Authority before they can make an application to be exempt from Corporate Tax.

All Taxable Persons must be registered before they file their first Corporate Tax Return. The Federal Tax Authority may register a Taxable Person, who is not otherwise registered, at their discretion.

Yes. All Free Zone Persons will be required to register, obtain a Tax Registration Number, and file a Corporate Tax return, irrespective of whether they are a Qualifying Free Zone Person or not.

Yes. Taxable Persons will be required to register for UAE Corporate Tax (and update their details, if required), even if they are already registered for VAT.

All Taxable Persons, including those with no Corporate Tax liability, will be required to register for Corporate Tax and obtain a Corporate Tax Registration Number. Public and qualifying private pension funds and social security funds, Qualifying Investment Funds, and juridical persons owned by certain Exempt Persons will also need to register for Corporate Tax before they can be exempt from Corporate Tax. Qualifying Public Benefit Entities that are listed in Cabinet Decision No. 37 of 2023 or any subsequent relevant decisions must also register for Corporate Tax. Government Entities, Government Controlled Entities and Extractive Businesses and Non-Extractive Natural Resource Businesses that meet the relevant conditions in the Corporate Tax Law must register for Corporate Tax if they conduct a taxable business.

Relevant Blogs

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