A Guide on Corporate Tax Registration and De-registration

Corporate tax is a type of tax imposed on business entities to help fund government operations, maintain public infrastructure and provide services to citizens. It is levied on companies' profits and income, which are calculated according to the business's ownership structure. Depending on the country or region where a company does business, different corporate tax rates may be applied.

In most countries, corporations pay taxes based on their net income. This means that any deductions for expenses related to running the company will be taken into account when calculating the final corporate tax amount due. Businesses can also take advantage of various deductions and credits offered by governments in order to reduce their overall liability for corporate taxes.

Furthermore, some countries offer special incentives such as reduced rates or exemptions for certain types of businesses operating within their jurisdiction. Corporate taxes are typically paid monthly or quarterly depending upon the amount due and any payment arrangements made with authorities.

Corporate Tax in Dubai, UAE

The United Arab Emirates (UAE) has proposed implementing a corporate tax regime with a standard rate of 9% beginning in June 2023. The UAE Minister of Finance made the proposal during the country's annual budget announcement.

The new corporate tax regime will apply to all businesses in the UAE, including those that are currently tax-exempt. The implementation of a corporate tax regime is consistent with the UAE's commitment to increase competitiveness and attract more foreign investment. It is also expected to bring in more revenue for the government.

The new CT system will replace the current VAT system and will be assessed at a rate of 9%. All businesses with annual revenues of more than AED 375,000 are required to comply. The CT system will be overseen by the Federal Tax Authority (FTA).

The CT system's implementation is expected to generate around AED 12 billion in additional revenue for the UAE government in its first year. This revenue will be used to fund the UAE government's various initiatives and programmes.

The Federal Tax Authority (FTA) of the United Arab Emirates (UAE) has issued a guidance document on corporate taxation in the UAE. With a few exceptions and adjustments, the guidance applies to all taxable corporations in the UAE.

Corporate taxable income will be calculated using accounting net profit from financial statements, with certain adjustments. The FTA has provided a list of items that will be tax-free as well as a list of allowable deductions.

The proposed corporate tax rate of 9% is significantly lower than rates in neighbouring countries like Saudi Arabia (20%), Qatar (10%), and Kuwait (15%).

Corporate Tax Registration in Dubai

All Taxable Persons (including those in Free Zones) must register for Corporate Tax and obtain a Corporate Tax Registration Number. Certain Exempt Persons may also be required to register for Corporate Tax by the Federal Tax Authority.

Taxable Persons must file a Corporate Tax return for each Tax Period within 9 months of the end of the applicable period. In general, the same deadline would apply to the payment of any Corporate Tax due in relation to the Tax Period for which a return is filed.

The majority of businesses register as an employer with Companies House, Corporation Tax, and PAYE all at the same time.

If you have already registered your business, you must use this service to register for Corporation Tax:

• You registered for Companies House with the help of an agent and third-party software, but you did not register for Corporation Tax.
• Log in to HMRC's online services if you have already registered for Corporation Tax to file your company tax return or make a payment. If you don't already have an account for online services, you can create one when you sign in.
• Register your company within three months of opening. This includes purchasing, selling, advertising, renting real estate, and hiring personnel. You can look it up if you're not sure what it means to start a business.

NOTE: There may be a penalty if you register late.

Process of Corporate Tax Registration in Dubai

• Log in to your business tax account to register for Corporation Tax. Follow the instructions in your account to register.
• You'll need your company's Government Gateway user ID and password to sign in. If you don't already have a user ID, you can create one when you sign in.
• In addition, you will need your company's 10-digit Unique Taxpayer Reference number (UTR). Within 14 days of the company being registered with Companies House, HM Revenue and Customs (HMRC) will send this to your company address (incorporated).
• If you have not yet received your company's UTR after registering it, you can do so online.

What you must tell HMRC

When you register, you must inform HMRC of the following:

• Your company's registration number.
• The date you started doing business (the first accounting period for your company will begin on this date)
• The date on which your annual accounts are completed.

Corporate Tax De-registration in Dubai

When a business or business activity comes to an end, whether through dissolution, liquidation, or another method, the Taxable Person must complete a deregistration form in the format specified. A Taxable Person may not be deregistered until all required documents have been submitted.

If the Tax Deregistration Application is approved, the Authority must deregister the property. If any of the requirements for Tax Deregistration outlined in this Article are not met, the Authority may deregister the Taxable Person on the later of the following dates:

• The last day of the Tax Period when the Authority became aware that this provision had not been followed;
• The point at which the Taxable Person ceases to exist.

Corporate Tax Consultants in Dubai, UAE

For a company looking to expand into UAE, hiring Corporate Tax Consultants in Dubai is an essential component of success. Tax consultants in Dubai can help companies understand and comply with the complex taxation system of the United Arab Emirates (UAE). With their expert knowledge and experience regarding taxes, they can provide invaluable advice on how to minimize tax liabilities while conforming to all applicable regulations.

Having an experienced, knowledgeable corporate tax consultant onboard helps businesses plan their finances better. They can guide them through the intricate details of maintaining accurate financial records and filing taxes correctly. A good tax consultant is also adept at identifying potential deductions for which a business may be eligible, saving them money in the long run. Furthermore, they ensure that businesses adhere to relevant laws and regulations during all stages of operations in Dubai.

Choose Reyson Badger for Best Corporate Tax Services in Dubai, UAE

Reyson Badger has become the go-to company for corporate tax services in Dubai, UAE. For businesses based in Dubai, UAE, Reyson Badger offers a wide range of services to help them manage their taxes effectively and efficiently. With years of experience in taxation and a team of knowledgeable professionals, Reyson Badger is your best choice for all corporate tax needs.

At Reyson Badger, we understand that managing taxes can be complex and overwhelming for businesses. We therefore provide comprehensive advice on everything from understanding intricate regulations to helping companies choose the most suitable tax solutions.

Our team is highly experienced at dealing with both international and local taxation matters, making sure that our clients comply with all applicable laws while also taking advantage of any available deductions or incentives.

Contact us to know more!!!