Introduction to the Federal corporate tax UAE

The corporate tax is a form or direct tax Collected on the taxable income of corporations and other companies. The corporate tax is also known as ‘Corporate Income Tax’ or ‘Trade Income Tax’ in other jurisdictions.

The corporate tax is imposed on taxable income:

• 0% on the taxable income annotation AED 375,000.
• 9% on the taxable income expedited AED 375,000.

The corporate tax applies to:

• Legal persons (such as corporations) that are incorporated into the EAU or foreign legal persons that are effectively administered and controlled in the EAU;
• Non -resident legitic people (foreign legisical entities) who have a permanent establishment in the EAU:
• Non -residents diving origin income
• Non -resident legal persons who have a ‘link’ in the EAU in the virtue of gaining entry of immovable properties in the EAU; and
• Natural persons who carry out commercial or commercial activities in the EAU

The following are considered exempt from the corporate tax:

• The federal and emirared governments of the EAU and their departments, authorities and other public institutions;
• Companies totally owned by the government that carry out a mandatory activity, and that are listed in a decision of the cabinet;
• Companies dedicated to the extraction of natural resources of the EAU and related non -extractive activities that are subject to taxes at the Emirate level after complying with certain conditions;
• Public benefit entities listed in a cabinet decision;
• Investment funds that meet the prescribed conditions;
• Public or private or social security funds that meet certain conditions;
• Legal persons of the EAU who are totally in exempt entities after complying with certain conditions.

Record – All taxable persons must be registered for corporate taxes with the FTA and obtain a tax registration number for corporate tax. This must be done before a deadline to be determined by the FTA. All taxable persons who are registered for the corporate tax are encouraged as soon as they realize that they will be within the reach of the corporate tax.

Process to register for corporate taxes:

1.Cree Login

Log in the FTA portal www.sevices.tax.gov.ae . If you already have an account with EMARA’s tax portal for your company, log in to your company’s account. If this is the first time you are using Emara’s tax portal, register with your company’s credentials.

2. Taxable person

Once you log in to Portal, you can see the option for a taxable creative person. This is basically a business record with the portal. If you already have ‘taxable person’, you must use the same. You must load the following documents and details to create or update ‘taxable person’.

• Type of company
• Company Trade License
• Company address
• Company contact data
• Details of the company’s commercial activity
• The entire passport owner
• The entire Emirates ID owner

3. Start corporate tax registration

Once his ‘taxable person’ is created, he is ready to start with the corporate tax registration process. Click ‘See’ Below ‘Taxable Person’. Click the ‘Register’ button as visible in the next screenshot. This will open a new screen where the FTA will request details for its corporate tax registration.