This article outlines the process for deregistering Taxable Persons for Corporate Tax purposes in UAE. Deregistration can occur when the person's business or business activity ceases to exist, on conditions that all outstanding Corporate Tax and Administrative Penalties have been paid, and all necessary filing requirements have been completed. Alternatively, the authority may exercise its discretionary power to deregister the Taxable Person for Corporate Tax. Thus, Taxable Persons are advised to seek the expert services of top Tax Consultants in UAE to ensure compliance with the Corporate Tax Legislation in UAE upon corporate tax deregistration.
Conditions to Deregister for Corporate Tax
The corporate tax Explanatory Guide stipulates that a person may apply for Tax Deregistration by submitting an application. This application should be filed by any person with a Tax Registration Number when they no longer engage in any business activity. The specific form, manner, and timeline for submitting the deregistration application will be determined by the authority.
Additionally, a person registered for Corporate Tax purposes can only be deregistered after fulfilling tax obligations. This includes paying all Corporate Tax and Administrative Penalties. Further, a taxable person cannot be deregistered unless all tax returns have been filed. These tax returns encompass the tax period up to and including the date when the person ceases to exist or operate.
Procedure for Processing Tax Deregistration
For corporate tax purposes, if the authority approves the deregistration application, they will proceed to deregister the person for Corporate Tax. The deregistration will take effect either from the date of business cessation or from another date determined by the authority. The authority has the discretionary power to deregister a person who fails to comply with the tax deregistration requirements outlined in this article. If the authority exercises this power and deregisters a person, the deregistration will take effect from the later of two dates:
- The last day of the tax period in which the authority is satisfied that all conditions have been met. This includes the filing of all tax returns and the complete discharge of Corporate Tax liabilities and Administrative Penalties.
- The date on which the taxable person ceases to exist.
Consult Leading Tax Consultants in UAE
In the United Arab Emirates (UAE), companies can benefit from the services of experienced Tax Consultants who specialize in navigating corporate tax laws and regulations. Tax Consultants in UAE are well-versed in the intricacies of tax outsourcing, including and not limited to tasks like filing tax returns and deregistering Taxable Persons for corporate tax purposes. By engaging the services of top Tax Consultants in the UAE, you can access expert advice that ensures compliance with corporate tax laws and fulfills all necessary requirements. Therefore, don't hesitate to reach out to us today, and we will be delighted to provide our assistance.
Read More: What is Corporate Tax in the UAE
Abrar Ahmad holds a Master’s as well as an MPhil in Finance and has an extensive experience of 10+ years in managing all aspects of Taxation, VAT Consulting and Accounting. He also carries with him a working knowledge of corporate tax and has helped drive value and growth to the businesses of numerous clients.