Mandatory registration is required for Juridical persons and Natural persons with revenue 1 million and more for UAE Corporate Tax.
Businesses earning income above AED 375,000 will be subject to the 9% corporate tax rate. It is crucial for companies to accurately calculate their taxable income and ensure timely and accurate tax filings to avoid penalties and any negative impact on their reputation. It is also important for businesses to keep proper accounting records. All businesses by law are required to keep accounting records up to seven years.
However, it’s worth noting that certain industries and free zones may be exempt from or subject to different tax rates. It is advisable for businesses to seek professional advice and consult with tax experts to navigate the complex tax landscape in the UAE.
Example of Juridical persons are:
Incorporated companies mainland or freezone in the UAE and incorporated and foreign companies that are effectively managed and controlled in the UAE.
- LLCs
- Freezone companies ( List of freezones in UAE)
- Limited Partnership company
- Public Joint Stock company
- Private Joint Stock company
Example of Natural persons are:
Persons operating a business activity with an Economic License normally issued as a mainland license. These license are described as “Establishment” license. Many freelance professional license and Tajer trade license are issued this way. Natural persons are not required to register for UAE corporate tax if their revenue falls below AED 1 million. However, this does not prevents small businesses with lower revenue from registering for UAE corporate tax, if their income surpasses the taxable limit of AED 375,000.
Registration Deadline:
A juridical person that is a Resident Person incorporated or otherwise established or recognised on or after the effective date (March 31, 2024) of this Decision, shall submit a Tax Registration application, in accordance with the following table:
If you have registered your company before March 31, 2024, click here to see the deadlines for corporate tax registration in 2024.
| Category of juridical persons | Deadline for submitting a Tax Registration application |
|---|---|
| A person that is incorporated or otherwise established or recognised under the applicable legislation in the State, including a Free Zone Person |
(3) three months from the date of incorporation, establishment or recognition |
| A person that is incorporated or otherwise established or recognised under the applicable legislation of a foreign jurisdiction that is effectively managed and controlled in the State |
(3) three months from the end of the Financial Year of the person |
Reviews
There are no reviews yet.