Fifth: Registering for corporate tax in the UAE

At ECPA, we offer professional services to help you register for corporate tax in a correct and comprehensive manner, ensuring full compliance with Federal Tax Authority laws and avoiding fines.

We provide customized consultations tailored to your company's activities, whether based in the mainland or free zones, while carefully following the registration steps and deadlines.

1- Companies Required to Register for Corporate Tax

• All companies and legal entities residing in the UAE with taxable income exceeding AED 375,000 per year.

• Foreign companies with a permanent establishment in the UAE or effectively managed and controlled within the UAE.

• Resident natural persons who conduct business activities and whose annual income exceeds AED 1 million.

• Registration is necessary to avoid financial penalties.

2- Documents Required for Registration for Corporate Tax

• A copy of the trade license.

• A copy of the Emirates ID card or passport of the authorized signatory.

• The company's articles of association (for limited liability companies).

• Proof of authorization for the authorized signatory (if applicable).

• Bank account details.

• Audited financial records or financial reports as needed.

• Careful preparation of these documents expedites the registration process.

3- Differences in Registration Between the Mainland and Free Zones in Corporate Tax

• Mainland: Companies are fully subject to corporate tax and are required to register under the Federal Tax Authority system.

• Free Zones: Some free zones offer facilities and guarantees of exemptions or lower tax rates, but companies that conduct business with the Mainland or exceed revenue criteria are subject to the same registration rules.

Registration in free zones requires a thorough knowledge of the zone's specific legislation.

4- Differences Between Designated Zones and Free Zones in Corporate Tax

• Free Zones: Special economic zones that provide investment incentives, including tax reductions and often exemption from corporate tax.

• Designated Zones: These are considered outside the scope of the federal tax law and are subject to different rules governing the commercial and customs environment.

• Understanding the difference makes it easier to find the right tax solutions for your company.