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!

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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 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

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)

File final corporate tax return
Calculate and pay final tax liability
Obtain all tax clearance certificates

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-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 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

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

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 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.