UAE Corporate Tax: New Businesses Must Adhere to 3-Month Registration Deadline

With a surge of new businesses in the UAE, immediate tax registration has turned out to be a crucial priority. Across the country, free zones are promoting their perks actively to draw investors, offering exciting incentives. New enterprises must carefully consider their corporate tax registration obligations and potential eligibility for a 0% tax rate. Forward-thinking businesses often consider seeking professional assistance from a leading corporate tax consultant in Dubai to remain on the right track.

Regardless of the location of the free zone, every newly incorporated business in the UAE must prioritize corporate tax registration. The tax authorities in the country have explicitly stated that businesses with mainland, free zones, or offshore licenses are required to register for corporate tax. This clearly defines the corporate tax registration requirements for businesses operating in the UAE.

Chambers of commerce and leading free zones in the UAE have reported an increase in the number of businesses looking for incorporation in the country. This is the result of the different Comprehensive Economic Partnership Agreements (CEPA) that the UAE has secured with multiple countries. As a result, the nation is witnessing a higher influx of new businesses of late.

Key Steps for New Businesses

New businesses in the UAE must file for tax registration within three months from their date of incorporation. Failure to meet this deadline will result in fines for non-compliance. In the UAE, new entities benefit when they integrate into an established tax regime. This makes it easier for them to understand the requirements of corporate tax.

Many businesses are currently confused over whether they can complete the tax registration simultaneously while obtaining their trade license. To clarify this point, they can’t carry out these two processes together.

On the other hand, existing businesses face challenges in understanding their corporate tax liabilities between mainland and free zone operations. A professional team of experts like the IMC Group, which specializes in UAE Corporate tax registration , can comprehensively assist both new and existing businesses in this regard.

Trade License and Tax Registration

Businesses applying for tax registration need to submit a copy of their trade license. With a 3-month deadline, businesses enjoy some flexibility to complete their registration with the Federal Tax Authority (FTA). Once registered, the FTA will issue a Tax Identification Number (TIN) within 20 working days.

FTA Guidelines and Deadlines

The UAE tax regulator has adopted a proactive stance while issuing updates and reminders for both old and new entities regarding registration and obtaining their TIN. The FTA has stated that it doesn’t want to amend any provisions of the legislation, maintaining the deadlines for various taxable persons, both resident and non-resident.

According to the latest decision of the FTA, the timeline for applying for exemptions remains unchanged. Therefore, all taxable persons need to submit their tax registration application to the FTA by the specified deadlines.

Professional Assistance from a Corporate Tax Consultant in Dubai

With an increasing number of businesses willing to expand to the UAE, the free zones in the country have ramped up their incentives to attract new enterprises. Initiatives like providing physical and digital access 24/7 ensure that all the transactions would be completed on schedule. Some free zones offer premium office spaces and multiple licensing options, including dual licenses for businesses holding a Dubai Department of Economy and Tourism license, as well as multi-year licenses for long-term setups.

The IMC Group continues to be a leading Corporate Tax Consultant In Dubai , partnering with both new and existing companies and offering comprehensive assistance. Foreign businesses expanding to the UAE can trust this group of experts to ensure a seamless incorporation and corporate tax registration process, adhering to legal norms.