Mid and small firms have more time to organise their operations when they register for the UAE’s Corporate Tax programme in stages. Additionally, it allows the tax authorities to polish all associated procedures ahead of the Corporate Tax’s implementation date in June 2023. Currently, the ‘big corporates and public joint stock companies (PJSC) have been invited to do their CT registrations through the EmaraTax platform,’ said Manoj Agarwal, a tax consultant, according to Gulf News. This is consistent with Dr. Nabeel Ahmed’s comments as a Partner at DVS Management Consultancy; “While there is no conclusive information as to which select businesses were sent the invite by FTA allowing them to register via EmaraTax, we are aware some businesses with revenues beyond a certain threshold have received these invites. The FTA would be aware of such companies by virtue of them being registered for purposes of VAT.”
The early registration period will go through the end of May. Certain categories, such as a ‘Legal Person,’ which includes PJSCs and UAE private corporations, can register. “While firms in the UAE may apply what they have learned from registering and complying with VAT, the standards for CT registration are significantly different, according to tax advisors. For ‘smoother functioning, most details of businesses already registered with FTA for VAT are pre-populating in the CT registration form,” said Agarwal.
“If businesses are ready with all the info required, it is going to be a smooth process. The big entities must already be following an internal compliance process. For them, it will not be too complex to meet the requirements. For others, there is ample time for registration.” The FTA has said unequivocally that there would be no penalty for late registration. What firms must remember is to register at least 30 days before the deadline for filing tax returns. The deadline for filing the CT return with FTA and paying CT is 9 months following the fiscal year end of the taxpayer.
All enterprises, including those in free zones, corporations, and individuals, must register. A CT registration number (TRN) will be assigned when an application is filed. However, unlike with VAT, ‘de-registration’ does not apply to CT. Registration is also necessary even if the taxpayer’s income is exempt or less than AED 375,000 per year, according to the Gulf News. Businesses need to evaluate the information requirements and their availability. “The documents required may be different based on the type of the entity and its holding structure,” said Agarwal.
The documents required for CT Registration include:
1. Main trade license details (depending on the ‘entity type’).
2. All activities of the business to be included.
3. All owners who have 25% or more ownership in the entity must be added.
4. Registration will be in the name of a head office and not a branch. Branch details – trade license details, associated business activities and owners list – need to be added in the same application. In the case of multiple branches across different emirates, only one CT registration is required.
5. The company address. In the case of a foreign business, it is required to register, and a tax agent to be appointed.
6. Passport/Emirates ID of the taxable person. Additionally, evidence of authorization – the power of Attorney or MoA – is required in the case of a legal person registrant.
7. One or more authorized signatories can be added.
