All companies and taxable individuals in the United Arab Emirates must register for corporate tax, regardless of their yearly taxable income. The corporate tax rate is 9% on income over AED 375,000 and 0% on taxable income up to that amount. The payments for the corporate tax can be made through the following methods:
What are the key payment methods?
FTA offers a number of simple ways to pay your taxes online. Here are some most used options:
Bank Transfers
For local transfers within the UAE, utilize your mobile banking app or go online. Enter your Taxpayer Registration Number (TRN) and Gulf Initiative for Building Account Number (GIBAN) to add FTA as a payment recipient.
Provide your bank the FTA’s account information, including the GIBAN number, account name “Federal Tax Authority – E868AE,” and SWIFT code CBAUAEAAXXX, for transfers made from outside the United Arab Emirates. Also, submit your TRN so that the payment is properly credited. Allow additional time for overseas transfers to be processed, which can take up to a week.
Credit/Debit Cards
FTA accepts rapid payments with Visa or Mastercard plastic money cards. Your card can be used with authorized processors like e-Dirham or on the FTA’s website. Card payments will incur a minor fee of 2-3% of the total amount.
Exchange Houses
Over-the-counter tax payments are accepted by major UAE money transfer companies like UAE Exchange and Al Ansari. Go to any branch and provide your GIBAN, TRN, and the amount to be paid. Do this at least two days before the deadline to guarantee timely processing.
A new digital payment method has also been established by FTA for 2024, which enables you to securely pay taxes with mobile wallets connected to your UAE bank account.
To pay corporate tax online, you first have to register your business via the Emera Tax portal. Here’s how you can get yourself registered:
Documents required for Online Corporate Tax Registration:
Depending on whether the applicant is a natural or legal person, different documents are needed for corporation tax registration in the United Arab Emirates.
- For Natural Persons (Individuals): If applicable, a valid trade license And Emirates ID or Passport
- For Legal Persons (corporations or entities): An up-to-date and valid trade license, the authorized signatory’s Emirates ID or passport, authorization proof, and any relevant documentation, such as a power of attorney.
Digital submissions of Word or PDF documents up to 5 MB in size are accepted by the FTA.
Complete your registration and pay corporate Online
- Log in to EmaraTax: Use your UAE Pass or login information to access the EmaraTax portal. Create an account if you’re a new user.
- Add Taxable Persons: To continue, add a new Taxable Person if there aren’t any already associated with your profile.
- Choose to Register for Corporate Taxation: To start your application, choose ‘Register’ under the Corporate Tax area.
- Examine the registration requirements:Go over the given registration instructions, check the agreement box, and continue.
- Provide Information About the Entity: From the dropdown menu, select the proper entity type (legal person or natural person). Enter information such your registration number, legal structure, and trade license number.
- Type in your personal information: Add the legal name (in Arabic and English), trade name, and license number.
- Add Business Activities: Select ‘Add Business Activities’ and list the purposes for which the trade license is being used.8. Add Owners (if applicable): Provide ownership information for businesses whose owners own a 25% or more of the business.
- Provide Branch Information (if applicable): Choose ‘Yes’ and include branch information if your company has several branches.
- Add an Authorized Signatory: Include the authorized signatory’s Emirates ID or passport information along with any necessary authorization documentation.
- Review and Declaration: Carefully check all of the data that has been entered. By checking the declaration box, you may verify compliance.
- Submit Application: Complete the registration and submit it.
After registering, what happens next?
Your application is reviewed by the FTA once it is submitted, and if it is approved, a Tax Registration Number (TRN) is issued. Usually, the procedure takes up to 20 working days. Processing times may change if more information is required.
File your corporate tax returns
You have to file your corporation tax returns after registering for UAE corporate tax. This is where you disclose your business’s revenue and the amount of taxes owed. Numerous factors, including the kind of your firm, its operations, and its turnover, affect how much tax you must pay. The tax consultant can assist corporate entities in accurately completing corporate tax forms for accurate computations and payment.
Pay Your Taxes Online and Ontime
Submitting your tax payments on time is the final step. In order to avoid fines, penalties, and interest, accurate tax payments must be made within the deadline specified by the taxing authorities. Make sure you pay your taxes on time and monitor your tax responsibilities to prevent this.
Conclusion
In conclusion, the procedure of registering for corporate tax in the UAE may appear difficult at first. However, with the proper advice and insights, navigating it becomes possible. Understand the qualifying requirements, follow the steps, and avoid frequent errors for legal compliance and financial benefits. Explore the Federal Tax Authority (FTA) website for more information about corporate tax registration in the UAE. Consult corporate tax consultants who are knowledgeable about UAE tax legislation for precise and up-to-date information.