This chapter establishes the rules on when and how the taxable persons must register for Corporate Tax, the scenarios where the authority can initiate registration, and the conditions that must be satisfied for deregistration. It also offers the authority with discretionary powers to enforce compliance in both registration and deregistration cases.
Article 51 – Tax Registration
Any person or entity classified as a Taxable Person under the UAE Corporate Tax law should register in the specific form, manner, and timeline prescribed by the tax authority. Once registered, the authority will be issuing a Tax Registration Number (TRN) for the taxable person, which serves as an unique identifier for corporate tax purposes.
In cases where a taxable person or an entity is exempt from corporate tax, the tax authority may still require them to register for corporate tax. This includes exempt entities mentioned in Article 4 of the Federal Decree Law, as well as Unincorporated Partnerships.
The FTA can maintain accurate records and oversight, even for entities or taxable persons that do not have an immediate tax liability.
The FTA has the right to register a taxable person based on the available information without a formal application. In such cases, the registration will be effective from the date the entity became a Taxable Person. This helps to make sure that no entity or taxable persons avoids tax obligations just by failing to register voluntarily.
Article 52 – Tax Deregistration
Any taxable person or entity with an active TRN must apply for deregistration when they permanently cease their business operations or activities in the UAE. This may happen due to liquidation, dissolution, or any other form of cessation.
The deregistration request needs to be filed in the form and manner prescribed by the tax authority, within the specified timeline.
Deregistration will only be approved if the Taxable Person has:
- Paid all the outstanding tax liabilities.
- Settled any administrative penalties.
- Filed all pending tax returns, including the last tax return that covers the tax period till the date of cessation.
Upon approval, the authority will deregister the taxable person for Corporate Tax purposes which will be from the actual cessation date or any other date determined at the FTA’s discretion.
If a person fails to submit a deregistration application irrespective of meeting the conditions, the FTA may deregister the taxable persons on its own initiative. In such cases, the deregistration will be effective from the later of the last day of the tax period in which the FTA confirmed that the deregistration conditions were satisfied or the date the entity ceased to exist.
Tax deregistration is critical to formally end a business operations and its obligations under the Corporate Tax regulations. If a taxable person fails to deregister properly can result in continued tax compliance requirements, tax burdens, and potential administrative penalties.
