The Federal Tax Administration (FTA) is inviting select companies to initiate CT registration. Preference will be given to companies whose fiscal year begins on June 1st.
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Dubai: A step-by-step method of enrolling in the UAE’s corporate tax program will give small and medium-sized businesses more time to get the process in order. At the same time, tax authorities will be able to fine-tune all relevant processes from June 2023 to the effective date of the corporate tax.
Currently, “large corporations and public limited companies (PJSCs) are invited to conduct CT registrations through the EmaraTax platform,” said tax consultant Manoj Agarwal. “Based on the VAT registration, the Federal Tax Administration (FTA) has information about these large companies, especially those with a fiscal year beginning June 1, 2023.”
This ties into the words of Dr. Nabeel Ahmed, partner at DVS Management Consultancy. “There is no conclusive information that invitations from the FTA to register via EmaraTax have been sent to selected companies, but some companies with revenue above a certain threshold have received these invitations. The FTA recognizes such companies by being registered for VAT purposes.”
The early registration period will continue until May. Registration is open for a specific category, namely “legal entities”, which includes PJSC and UAE private companies.
Two different tax processes
According to tax consultants, UAE businesses can benefit from what they have learned from VAT registration and compliance, but CT registration requirements are quite different. “For smooth functioning, most of the details of companies registered in the FTA for VAT are pre-populated in the CT registration form,” he said.
“It will be a smooth process if companies have all the information they need ready. Large companies should already be following internal compliance processes. .
“Others have plenty of time to register.”
Wait for FTA invitation to enroll in CT
The FTA has contacted selected companies and these entities will receive invitations from the FTA via email and SMS to encourage them to register. Companies do not need to do anything unless they have received an “invitation to register”. Other registrations will be announced as soon as they are decided. After opening, priority will be given to businesses whose fiscal year begins on June 1.
no penalty
The FTA makes it clear that there are no penalties for late registration. What businesses need to keep in mind is to register at least before the deadline for filing tax returns. The CT return he will file with the FTA and the due date for paying the CT is 9 months after the end of the taxpayer’s year.
Who should be enrolled in CT
All businesses, including free zones, companies and individuals must register. A CT Registration Number (TRN) will be issued once the application is submitted. However, unlike VAT, “de-enrollment” does not apply to CT.
Registration is required even if the taxpayer’s income is exempt or below the threshold of Dh375,000 per year.
Please prepare these documents
Businesses should evaluate their information requirements and their availability. “The required documents may vary depending on the type of entity and its holding structure,” Agarwal said.
Documents required for CT registration are as follows:
- Main trade license details (by Entity Type).
- Includes all business activities.
- All owners with 25% or more ownership in the entity should be added.
- Registration is done under the name of the head office, not the name of the branch. Branch details – trade license details, associated business activities and owner list – must be added in the same application. For multiple branches across different emirates, only one CT registration is required.
- Company address. If you do business abroad, you must register and appoint a tax agent.
- Taxable Business Passport/Emirates ID. In addition, a power of attorney (Power of Attorney or MoA) is required for corporate registrants.
- 7. You can add one or more authorized signers.
