Corporate Tax Deregistration in the UAE
When a UAE company ceases operations, undergoes a merger, or no longer meets the requirements for corporate tax registration, it is required to apply for corporate tax deregistration with the Federal Tax Authority (FTA). This process formally removes the entity from the UAE Corporate Tax Register, thereby releasing it from the obligation to file tax returns or make further tax payments.
Who Must Apply for Deregistration?
Pursuant to Cabinet Decision No. 10 of 2024, businesses are required to apply for corporate tax deregistration in the UAE under the following circumstances:
- Permanent cessation of business activities;
- Completion of liquidation or formal closure;
- Merger with, or transfer of business operations to, another legal entity.
Failure to complete the deregistration process promptly will result in the company remaining active in the FTA system. Consequently, the entity will continue to incur tax return obligations and potential penalties until deregistration is finalized.
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When to Make a Deregistration
The law gives companies three months from the date of the closure, liquidation, or cessation of business to apply for deregistration.
In case the time lapses, the FTA can impose administrative fines, and the company will be legally obligated to provide tax returns until the deregistration process is complete.
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How to Apply?
The application needs to be made through the FTA online portal.
This is a general overview of the process:
- Log in to the FTA Portal using your company’s registered credentials.
- Select “Deregistration” and specify the reason (closure, liquidation, merger, or other).
- Attach supporting documents such as liquidation reports, trade license cancellation, or final financial statements.
- Settle pending corporate tax dues and submit any outstanding returns.
- Wait for FTA review and approval once all requirements are met, and you’ll receive a deregistration confirmation.
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Documents Required for Corporate Tax Deregistration
To process deregistration successfully, companies should prepare:
- Valid Trade License and proof of cancellation (where applicable).
- Most recent audited accounts to date of closure.
- Liquidation certificate (where in liquidation).
- Proof of paid tax dues and submitted corporate tax returns.
Inaccurate or incomplete documents may delay FTA approval.
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What Happens When Deregistration is Granted
Once the FTA approves the application, the company is deregistered from the UAE tax register. The business is no longer required to:
- Submit corporate tax returns.
- Maintain tax records for future reporting purposes (aside from historical record retention obligations).
- Respond to FTA correspondence for active companies.
However, it is recommended to hold tax records for a minimum of seven years following deregistration, as UAE tax record-keeping law stipulates.
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Why Deregistration on Time is Essential
Delay in deregistration could result in serious administrative and financial complexities:
- Late deregistration penalty of AED 10,000.
- Difficulty in cancelling business licenses.
- Delays in performing liquidation or winding-up processes.
- Periodic tax filing obligations until deregistration approval.
How We Help
CorporateTaxUAE.com assists all types of businesses from any industry to efficiently and accurately complete corporate tax deregistration in the UAE.
Our specialists’ handle:
- Submission and filing of deregistration applications.
- Handling the FTA for approval.
- Resolving outstanding tax returns and arrears.
- Handling liquidation audits and compliance reports.
With the help of our expert, your deregistration is completed quickly, without errors or delays. Contact us today, and we shall be glad to assist you.
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