UAE Corporate Tax Registration
UAE Corporate Tax Registration
The introduction of Corporate in the UAE follows logically from the UAE's membership in the OECD inclusive framework. The United Arab Emirates (UAE) has been a member of the Organization for Economic Cooperation and Development (OECD) since 2010, and its commitment to international cooperation was reaffirmed in 2016 when it joined the Inclusive Framework on Base Erosion and Profit Shifting (BEPS).
The UAE is committed to implementing BEPS measures as a member of the Inclusive Framework to ensure that multinational enterprises (MNEs) operating in the country pay their fair share of taxes.
The Emirates of the United Arab Emirates is a federation of seven emirates, each with its own ruler. The UAE has no federal corporate tax, but each emirate has its own corporate tax. In the UAE, corporate tax rates range from 0% to 55%.
As a result of this, and as a signatory to the OECD's inclusive framework, the UAE will begin implementing a federal Corporate Tax (CT) system in 2023. The new CT system will replace the current VAT system and will be assessed at a rate of 9%. All businesses with annual revenues of more than AED 375,000 are required to comply. The CT system will be overseen by the Federal Tax Authority.
The CT system's implementation is expected to generate around AED 12 billion in additional revenue for the UAE government in its first year. This revenue will be used to fund the UAE government's various initiatives and programs.
Corporate Taxation in the UAE
Some incomes are subject to corporate income tax in the UAE for both UAE residents and non-residents, and they serve as the foundation for taxing various types of income.
The Saudi government levies a graduated tax on corporations, with the tax rate increasing as income increases. The highest marginal tax rate is 30%, which applies to businesses with taxable incomes exceeding SAR 1 million.
Many businesses, however, are eligible for a 15% tax rate if they meet certain criteria, such as being registered with the Saudi Industrial Development Fund. Companies are subject to a 5% value-added tax in addition to corporate income tax.
In comparison to other countries in the region, the UAE's corporate tax regime is relatively simple and straightforward. However, it is critical for businesses to understand the various rates that apply to their income, as well as the various reliefs and exemptions that may be available.
Corporation Tax Registration
The majority of businesses register as an employer with Companies House, Corporation Tax, and PAYE all at the same time.
If you have already registered your business, you must use this service to register for Corporation Tax:
- You registered for Companies House with the help of an agent and third-party software, but you did not register for Corporation Tax.
- Log in to HMRC's online services if you have already registered for Corporation Tax to file your company tax return or make a payment. If you don't already have an account for online services, you can create one when you sign in.
- Register your company within three months of opening. This includes purchasing, selling, advertising, renting real estate, and hiring personnel. You can look it up if you're not sure what it means to start a business.
NOTE: There may be a penalty if you register late.
Registration Procedure
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Log in to your business tax account to register for Corporation Tax. Follow the instructions in your account to register.
- You'll need your company's Government Gateway user ID and password to sign in. If you don't already have a user ID, you can create one when you sign in.
- In addition, you will need your company's 10-digit Unique Taxpayer Reference number. Within 14 days of the company being registered with Companies House, HM Revenue and Customs (HMRC) will send this to your company address.
If you have not yet received your company's UTR after registering it, you can do so online.
When you register, you must provide HMRC with the following information:
- The registration number of your company
- The date you began doing business (the first accounting period for your company will begin on this date)
- When your annual accounts are finished
The Next Step
- The Corporation Tax payment deadline will be communicated to you by HMRC.
- You must file a Company Tax Return even if you make a loss or have no Corporation Tax to pay.
Obtaining your UTR after Registration
If you have enrolled in the Corporation Tax online service, you can find your 10-digit UTR in HMRC online services. It is also printed on all HMRC correspondence.
You will need your UTR if you contact HMRC about Corporation Tax and send your Company Tax Return using commercial software.
A Note From BRS
The Corporate Tax is a new set of regulations that will provide greater clarity and certainty to businesses in the UAE. The CT is designed to protect investors, encourage entrepreneurship, and boost the economy.
The new UAE Corporate Tax will help to level the playing field for UAE businesses while also providing greater investor protection. The law is also expected to boost the economy and encourage entrepreneurship.
