Corporate Tax Deregistration UAE

Complete UAE corporate tax deregistration within three months of cessation, liquidation, or relocation. Follow FTA’s 2025 rules, prepare the required documents, and meet deadlines to avoid penalties and secure a fast, compliant exit. Act now to protect your business!
What is Corporate Tax Deregistration in UAE

What is Corporate Tax Deregistration in UAE?

Corporate tax deregistration terminates your registration under Federal Decree-Law No. 47 of 2022 on Corporate and Business Taxation. The FTA requires formal deregistration to:

  • Cancel your TRN permanently
  • End filing obligations for corporate tax returns
  • Clear outstanding liabilities before closure
  • Prevent future penalties from accumulating

Your entity remains legally liable for all tax obligations until the FTA issues an official deregistration certificate. Missing deadlines triggers penalties under FTA Decision No. 6 of 2023.

UAE Companies that require corporate tax deregistration

UAE Companies Required to Deregister for Corporate Tax

Submit a corporate tax deregistration application if your business:

  • Ceases operations permanently in UAE mainland or free zones
  • Enters liquidation or bankruptcy proceedings
  • Merges with another entity and loses separate legal status
  • Relocates headquarters or management outside UAE
  • Transfers all assets to new ownership structures
  • Closes UAE branch offices of foreign companies

Both UAE resident companies and non-resident entities with UAE operations must deregister their corporate tax registration.

Corporate Tax Deregistration Deadlines UAE

Natural Persons (Individuals) Companies and Legal Entities
3 months from business activity cessation date 3 months from cessation, liquidation, merger, or relocation completion

Penalty Structure for Late Applications

  • AED 1,000 minimum penalty for delays
  • AED 2,000 for delays exceeding 60 days
  • Additional penalties for continued non-compliance
  • Interest charges on unpaid tax amounts

EmaraTax Corporate Tax Deregistration Process

Phase 1: Pre-Application Requirements

  • File final corporate tax return up to cessation date
  • Pay outstanding corporate tax, VAT, and excise duties
  • Obtain tax clearance certificates from all relevant authorities
  • Cancel mainland trade licenses or secure free zone exit letters
  • Final audited financial statements (signed and stamped)
  • Board resolution authorizing deregistration
  • Liquidation documents or merger agreements
  • Sale contracts with buyer details (if applicable)
  • License cancellation proof or exit certificates

Phase 2: EmaraTax Application Submission

  • Login to EmaraTax portal using UAE Pass credentials
  • Select registered entity from dashboard
  • Go to "Corporate Tax" section
  • Click "Actions" and then "Deregister"
  • Select cessation reason:
    • Business cessation
    • Liquidation/bankruptcy
    • Merger/acquisition
    • Relocation outside UAE
    • Asset transfer
  • Enter Critical Information

    • Cessation Date: Must match license records exactly
    • Final Business Day: Last operational activity date
    • Reason Code: Select appropriate FTA classification
    • Successor Details: New entity information (mergers/sales)

    Document Upload Requirements

    • Final signed financial statements (PDF format)
    • Auditor's report with cessation confirmation
    • Trade license cancellation certificate
    • Liquidation resolution or court orders
    • Asset transfer agreements with signatures

Phase 3: FTA Review and Approval

The third phase involves the following steps:

  • Application Processing Timeline
    • Initial Review: 5-7 business days
    • Document Verification: 3-5 business days
    • Final Approval: 2-4 business days
    • Total Processing: 10-20 business days (straightforward cases)
  • Common FTA Queries
    • Request for additional liquidation evidence
    • Clarification on asset disposal methods
    • Verification of successor entity details
    • Confirmation of final tax calculations
  • Certificate Issuance
    Download your Corporate Tax Deregistration Certificate directly from EmaraTax once approved. Remember, this document confirms official tax registration termination.

Required Documents for UAE Corporate Tax Deregistration

Financial Documentation

  • Final audited financial statements covering period up to cessation
  • Management accounts for partial periods
  • Asset disposal records with fair market values
  • Debt settlement confirmations from creditors

Legal Documentation

  • Board resolution approving deregistration application
  • Shareholder agreements for liquidation/merger
  • Court orders for bankruptcy proceedings
  • Liquidator appointment certificates

Regulatory Documentation

  • Trade license cancellation from DED/free zone authority
  • VAT deregistration certificate from FTA
  • Excise tax clearance (if applicable)
  • Professional license cancellations (banks, insurance companies)

Transaction Documentation (Mergers/Sales)

  • Share purchase agreements with completion dates
  • Asset purchase contracts detailing transferred items
  • Successor entity incorporation certificates
  • Post-merger structure organizational charts
Corporate Tax Deregistration Rejection Reasons

Corporate Tax Deregistration Rejection Reasons

The primary reasons for the rejection of corporate tax deregistration include financial compliance issues, documentation problems, and procedural errors.

Financial Compliance Issues

  • Outstanding VAT liabilities not cleared before application
  • Unpaid excise tax balances on TRN
  • Corporate tax arrears from previous periods
  • Penalty amounts not settled with FTA

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FTA Corporate Tax Deregistration Timeline

Strictly follow this timeline to get the job done adequately:

Immediate Actions (Day 1-7)

Application Phase (Day 8-14)

  • Submit complete EmaraTax application
  • Upload all required supporting documents
  • Monitor application status daily

FTA Review Phase (Day 15-35)

  • Respond to FTA queries within 48 hours
  • Provide additional documents if requested
  • Track processing through EmaraTax dashboard

Certificate Phase (Day 36-42)

  • Download deregistration certificate
  • Notify relevant government departments
  • Update bank account authorizations
Post corporate tax Deregistration Compliance Requirements

Post-Deregistration Compliance Requirements

Here are the compliance requirements after the corporate tax deregistration in the UAE.

Record Retention Obligations

Maintain 7 years of corporate tax records after deregistration:

  • General ledgers and accounting books
  • Bank statements and cash flow records
  • Invoice copies and payment receipts
  • Tax return filings and correspondence
  • Asset register and depreciation schedules

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Free Zone vs Mainland Corporate Tax Deregistration

Free Zone vs Mainland Corporate Tax Deregistration

Free Zone Entities Mainland Companies
Exit letters required from free zone authority DED license cancellation certificate required
License surrender to zone management Municipality clearances for specific business types
Asset export declarations for customs Professional license surrenders (if applicable)
Employment visa cancellations through MOHRE ADGM/DIFC notifications for financial services

Corporate Tax Deregistration Costs UAE

Corporate Tax Deregistration Costs UAE

There are no official FTA fees and the certificate of issuance is free of charge. However, there are some associated costs, such as:

  • Final audit fees: AED 5,000-15,000
  • Legal documentation: AED 2,000-5,000
  • Liquidator fees: 1-3% of asset value
  • Professional consultation: AED 3,000-8,000

Common Mistakes in UAE Corporate Tax Deregistration

Common Mistakes in UAE Corporate Tax Deregistration

  • Late application submission after deadline expiry
  • Premature filing before final return completion
  • Incorrect cessation dates not matching official records
  • Draft financial statements instead of final audited accounts
  • Missing successor details in merger scenarios
  • Incomplete asset disposal records
  • Outstanding VAT balances blocking deregistration
  • Unpaid corporate tax from previous periods
  • Missing professional licenses surrenders

Expert Tips for Successful Corporate Tax Deregistration

Expert Tips for Successful Deregistration

  • Engage qualified auditors for final financial statements
  • Coordinate with legal counsel for documentation review
  • Maintain detailed records of all cessation activities
  • Respond promptly to all FTA queries
  • Provide complete information in initial application
  • Monitor EmaraTax regularly for status updates
  • Clear all liabilities before application submission
  • Verify cessation dates across all documents
  • Retain qualified advisors for complex cases

Professional Corporate Tax Deregistration Services in UAE

Farahat & Co. has corporate tax specialists who manage complete deregistration processes from compliance review to FTA certificate issuance. We handle complex liquidations, mergers, and relocations while ensuring deadline compliance and penalty avoidance.
Contact our tax advisory team with your cessation date, license status, and current tax position to begin your corporate tax deregistration process today.

FAQs About Corporate Tax Deregistration in the UAE

Can I operate after submitting deregistration application?

No. Business operations must cease before application submission. The cessation date marks your final business day.

What happens if FTA rejects my deregistration application?

Address rejection reasons and resubmit corrected application. Common issues include outstanding liabilities or incomplete documentation.

Do I need separate VAT deregistration?

Yes. Clear VAT obligations independently before corporate tax deregistration. Both registrations operate separately.

Can I reverse corporate tax deregistration?

No. Deregistration is permanent. New business activities require fresh corporate tax registration with new TRN.

How long do FTA audits remain possible?

FTA can audit deregistered entities for 7 years after deregistration using retained records.

What if my company continues earning income after cessation date?

Report any post-cessation income in amended returns. This may affect deregistration eligibility.

Are there different rules for foreign company branches?

Foreign branches follow same deregistration process but require additional documentation from parent company.

Can liquidators handle the entire deregistration process?

Yes. Appointed liquidators can manage deregistration as part of formal liquidation proceedings.

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