Understand Corporate Tax in Dubai: Grab the Top Benefits from the Services

Corporate Tax Registration Services in Dubai will ultimately help you handle corporate tax. It will surely help with better management.

When it comes to the corporate tax in Dubai, you should be familiar with the basis. It is the tax that is essentially charged on the profits of a business in the UAE. Corporate tax differs from country to country; the authority in the UAE has worked hard on its corporate tax laws. Since the beginning, Dubai has always been a tax-free country. However, corporate tax was a surprise for several businesses.

The prime reason for the introduction of corporate tax was to boost the level of transparency in businesses and to align with global standards. Here, you can find out more information about Dubai company tax registration and its impact on businesses in the UAE.

According to the statistics, the Ministry of Finance in the UAE introduced the corporate tax in 2022. It will be implemented in June 2023 to impact the fiscal years of the companies or businesses. Therefore, the audit firms in Dubai and tax consultants in the UAE have initiated providing corporate tax advisory and implementation services for interested businesses.

Registration for Corporate Tax in the UAE

According to the FTA's Federal Decree Law 47, the corporate tax regime requires every taxable person, including the Free Zone Person, to register for corporate tax and receive a registration number. The Federal Tax Authority also obliged that even the exempted persons register for corporate tax.

Taxable businesses should file corporate tax returns for nine months from the end of the period. The deadline is commonly used in the payment of all corporate taxes related to the tax period in which the return is filed.

In the cases expelled as declared by the Minister, a taxable person must register for corporate tax with the Federal Tax Authority in a definite format within a timeline stated by the authority.

The authority needs the taxable person, or the independent business, to register for corporate tax and get the tax registration number. The Tax Authority must have a unique judgment for corporate tax registration from the day a person becomes a taxable person.

How do I get registered for the UAE corporate tax?

The Federal Tax Authority has announced pre-registration of business tax on the EmaraTax platform. It is an online portal for taxpayers to manage all the tax registrations, refunds, returns, deregistrations, and payments in one place. One can also create VAT payments quickly using the EmaraTax user-friendly gateway.

If the registration of the corporate tax is finished, the taxpayers have to pay a standard rate of corporate tax of 9% on taxable earnings above AED375,000, while taxable earnings up to AED375,000 are charged about 0%.

Corporate tax registration is even more significant because it reduces the after-tax revenue of the companies and thus gets back to the shareholders. It impacts not just people with direct shareholdings but also circuitous shareholders through private pensions or funds for the investment.