1. Eligibility Assessment
Before registering, businesses must check if they qualify as a taxable person under the UAE Corporate Tax Law.
- Who is taxable? Companies operating in the UAE, including LLCs, PSCs, and Free Zone entities, may be subject to corporate tax.
- Tax rate: The UAE corporate tax rate is 9% for businesses earning more than AED 375,000 annually.
- Exemptions: Certain entities, like government-owned businesses and charities, may be exempt.
2. Registration with the Federal Tax Authority (FTA)
Businesses must register through the FTA portal to obtain a Corporate Tax Registration Number.
- Deadline: Companies must register before their first taxable financial year begins.
- Process: Registration is done online via the FTA website, and businesses must provide details like trade license, financial records, and ownership structure.
3. Group Registration (if applicable)
Companies that are related (such as subsidiaries under a parent company) can form a Tax Group to file a single tax return.
- Conditions: The parent company must own at least 95% of the shares and voting rights of each subsidiary.
- Benefits: Tax Groups simplify tax filing, allow profits and losses to be offset, and reduce overall tax liability.