Registration for corporate tax has started today (15 May) in the United Arab Emirates (UAE). According to Federal Tax Authority (FTA), public joint stock companies and private companies can register via the EmaraTax platform.
The Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses outlines that the taxable entities will be required to pay the corporate tax starting from the first financial year on 1 June 2023.
FTA said that the registration for the free zone and other companies will open later. The authority also remarked that early registration will allow companies to properly follow legal requirements.
Advisory by Ministry of Finance (MoF)
Earlier, the Ministry of Finance (MoF) issued a new resolution, clarifying the criteria for corporate tax exemption to encourage growth across multiple industries.
The Ministerial Resolution No. (105) of 2023 outlines the mandatory conditions for a person or company to be exempt from corporate tax. Undersecretary MoF, Younis Haji Al Khoori, stressed that the resolution is intended to create a transparent and efficient tax system.
He said that the conditions include situations such as unexpected emergencies or circumstances beyond the control of the individual or business seeking exemption.
The resolution further mentions the requirements that businesses must meet to retain their eligibility for exemption from corporate tax, even if they do not meet the relevant conditions outlined in the corporate tax law.
It also wants the companies, in the process of liquidation or shutdown, to inform the Federal Tax Authority (FTA) within 20 working days from the start of these procedures. If they fail to meet the exemption criteria due to an emergency, they must apply to the FTA within 20 working days of not fulfilling the exemption requirements.
