Corporate Tax Deregistration in UAE

Corporate tax is a direct levy imposed on the earnings of businesses and corporations operating in the United Arab Emirates (UAE). Registration for corporate tax is obligatory for all businesses and corporations meeting the criteria outlined by the Federal Tax Authority (FTA), and compliance with tax laws and regulations is mandatory. However, circumstances may arise where a business or corporation needs to undergo the process of deregistering for corporate tax. This article aims to provide a comprehensive overview of corporate tax deregistration in the UAE, covering the criteria for deregistration, the procedural steps involved, and the necessary documentation.

Pre-Deregistration Tax Compliance Process:

Prior to initiating the corporate tax deregistration process in the UAE, businesses are required to adhere to various tax compliance procedures. These include:

• Ceasing Business Activities in UAE: Notify the relevant authorities of the intention to cease business activities. This is an essential step to ensure compliance with tax laws and regulations.
• Tax Clearance Certificate UAE: Obtain a tax clearance certificate from the Federal Tax Authority (FTA) to confirm that all outstanding tax obligations have been settled and the business has no further tax liabilities.
• Tax Obligations Settlement: Settle all outstanding tax obligations, including filing and submitting all required tax returns, paying any due taxes, and addressing any administrative penalties.
• Corporate Tax Cancellation: Apply for corporate tax deregistration through the prescribed form and process, as outlined by the FTA. This will officially cancel the company's corporate tax registration and ensure compliance with tax laws.

By adhering to these tax compliance measures, businesses can confirm their favorable standing with the Federal Tax Authority (FTA) and subsequently move forward with the corporate tax deregistration process in the UAE.

Criteria for Corporate Tax Deregistration:

Prior to commencing the tax deregistration procedure, it is crucial to assess whether a business or corporation fulfills the criteria for corporate tax deregistration in the UAE. A taxpayer is eligible or obligated to submit a deregistration application to the FTA based on the following criteria:

• Cessation of Business
• Sale of Business
• Merger of Business
• Re domiciliation of Business
• Any other reasons for Corporate Tax purposes

Corporate Tax Deregistration Procedures in UAE

The FTA requires all taxable persons to register for corporate tax and obtain a Corporate Tax Registration Number (TRN) per the UAE Corporate Tax Law. However, if a company ceases its business activities in the UAE, it must apply for deregistration of its corporate tax registration with the FTA. The following are the corporate taxation deregistration steps:

1.  Login to EmaraTax: The first step is to log in to the EmaraTax portal using your login credentials or UAE Pass.
2.  EmaraTax Taxable Person Dashboard: Once you have logged in, select the taxable person from the list and click 'View' to open the dashboard.
3.  De-Register: Click ‘Actions' on the Corporate Tax tile within the Taxable Person Dashboard to initiate the Corporate Tax De-Registration application. 
4.  Instructions and Guidelines: Read the instructions and guidelines for Corporate Tax De-Registration and mark the checkbox to confirm.
5.  De-Registration Information: Enter the 'Date of Cessation of Business or Business Activity' and select the 'Reason for Cessation of Business' from the drop-down.
6.  Add Buyer/Transferee: If the reason for cessation of business is the sale or transfer of the business, click to ‘Add Buyer/Transferee’ and enter all mandatory information.
7.  Review and Declaration: Review all the details entered by you across the application and mark the checkbox to declare the correctness of the information provided in the application.
8.  Submit: Click ‘Submit’ to submit the Corporate Tax De-Registration application. Once the application is submitted, the FTA will pre-approve, approve, or reject the request and notify the registrant accordingly.
9.  Post Application Submission: After submitting your application successfully, a Reference Number is generated for your submitted application. Note this reference number for future communication with the FTA.

Seek the Expert Services of Top Tax Consultants in the UAE

In summary, the process of deregistering corporate taxes in the UAE can be intricate and time-intensive. Adherence to UAE tax laws is imperative for a seamless deregistration experience. Businesses can seek the assistance of Corporate Tax Consultants in the UAE to guarantee compliance with tax regulations, thereby averting potential penalties or fines. These consultants offer expert guidance on corporate tax cancellation, UAE tax deregistration procedures, streamlining the process, and reducing the impact on company time and resources. Partnering with a reputable Corporate Tax Consultant enables companies to maintain compliance with tax laws and work towards achieving their business goals and objectives. Therefore, contact us today and we shall be glad to assist you. 

Read More: Corporate Tax Deregistration for Natural Persons in the UAE