Are you ready for UAE Corporate Tax Registration in 2024? Discover key benefits, risks, and required documents. Learn how BMS Auditing can guide your business through new tax regulations seamlessly.
The entities liable to corporate tax in the UAE, including Free Zones and Exempted Persons, shall be required to obtain a Corporate Tax Registration Number under Federal Decree Law 47 along with the relevant rules of FTA. Such registration shall be made only on the platform EmaraTax.
A corporation is allowed to submit its Corporate Tax returns and to pay any amount of tax due within nine months of the end of each tax period. This applies to all organizations under the UAE's corporate tax regulations.
Key Benefits of Corporate Tax
- Generate new revenue sources for governments and spur economic growth
- Promote business transparency and accountability
- More equity in tax among businesses
- Adjust tax rates to regulate and stimulate the economy
- Corporate taxes are relatively less volatile than those in personal income tax
- More manageable than personal taxes as there are fewer entities.
- Sponsors the funding of social security and debt reduction.
- Funds obligatory services such as health, education, and transport.
- Encourages college education and knowledge-based economies
- Encourages local investment and shields home industries from foreign competition.
All the money is used for health care, education, and transport services Specialist Education Funding of Higher Education and Knowledge-based economies Economic Growth It promotes local investment and protects local businesses against overseas competition.
Risks of Failing to Register for Corporate Tax on Time in the UAE
The UAE government has introduced late registration penalties in the hope of bringing in timely compliance with the new corporate tax laws. The new penalties are identical to those charged on time for the late registration of excise and value-added taxes.
Key Points
- Legal Basis: Cabinet Resolution No. 2024 of 27 February 2024 amends the infractions and administrative penalties set out in Cabinet Resolution No. 2023.
- Applicable Date: 1 March 2024.
- Deductible Amount: AED 10,000 for failure to submit a corporate tax registration application with the FTA within the stipulated period.
- Implementation: These fines will be implemented by the Federal Tax Authority.
- Historical Background: On 01 August 2023, these fines were originally constituted when the Corporate Tax Law was enacted.
It indicates the requirement for early registration and adherence to the new corporate tax regime of the UAE. Businesses are advised to proactively fulfill the registration requirements so that they avoid any financial penalties and reputational risks that may arise in case of non-adherence.
Key documents required for UAE corporate tax registration
BMS Auditing further advises the clients to prepare the following key documents to ensure that this corporate tax registration process does not involve any hassle
- Copies of valid passports of all owners/partners (License Holders)
- Valid Emirates ID copy of owners/partners
- Memorandum of Association or Power of Attorney
- Representative contact person contact details that include mobile number and email
- The official company's address, along with the P.O. Box
This is also a prerequisite that is key to registration, but according to your company structure or if you are a foreign entity, you will be compelled to submit other documentation or complete some additional steps.
BMS Auditing has the necessary know-how for advising on and managing your smooth registration process that will comply with all the requirements of the UAE's corporate tax. Let us guide you smoothly through a hassle-free tax journey without pitfalls at every stage.
How Does BMS Auditing Help?
We have business management software that meets all the increasing needs of your organization. Our system will provide you with full support in UAE VAT from preparing tax invoices to account VAT returns accurately. Our key features include:
- Wide-spectrum financial reports and business reports through intuitive well-prepared dashboards that are ready to begin corporate taxation from day one.
- Includes Tax invoices accurate VAT returns and many more along with Full Support of UAE VAT Requirements.
- At the click of a button, you can have whatever financial statement you require.
- Adaptive Business Modules: This module utilizes multiple modules to support your ever-evolving business needs.
- Detailed tracking of your inventory will keep everything right.
- You can access your business reports from anywhere and on any device, mobile or desktop.
With BMS Auditing, you will have the tools needed to make solid judgments and decisions for effective business management and VAT compliance.
Optimize Your Taxes with Expert Review from BMS Auditing
A review by a tax professional will prevent you from paying excess taxes and even expose any mistake in your tax return that may qualify you for a refund. Additionally, it opens up other legal roads toward saving taxes that you may not have noticed otherwise. Here at BMS Auditing, we have extensive knowledge about the UAE's tax laws and experience in dealing with high-value corporates, thus keeping your business abreast of the UAE's corporate tax regulations. Contact us today to know how we can help you.
