Big corporates and PJSC are invited currently to register for UAEs Corporate Tax program

The ‘big corporates and public joint stock companies (PJSC) have been invited to register for the UAE’s Corporate Tax program currently. Their CT registrations has to be done through the EmaraTax platform. Based on their VAT registrations, the Federal Tax Authority (FTA) has info on these big corporate houses, specifically the ones with financial year starting June 1, 2023.

The early registration period will continue until May. Registration is open for certain categories - i.e., a 'Legal Person', which includes PJSCs and UAE private companies.

Two different tax processes:

According to tax consultants, while businesses in the UAE can put to good use what they have learnt from registering and complying with VAT, the requirements on CT registration is quite different. For ‘smoother functioning, most details of businesses already registered with FTA for VAT are pre-populating in the CT registration form.

If businesses are ready with all the info required, it is going to be a smooth process. The big entities must already be following an internal compliance process. For them, it will not be too complex to meet the requirements.

FTA is contacting selected businesses and these entities will be receiving invitations from the FTA by email and SMS, inviting them to register. Unless businesses have received an 'Invitation to Register', they are not required to take any action. Registration for others will be announced in due course. Once opened, priority will be given to businesses that have a financial year beginning June 1.

The FTA has made it clear there will be no penalty for late registrations. What businesses need to keep in mind is register at least before the due date for tax return submissions. The deadline for filing the CT return with FTA and paying CT is 9 months after the tax payer’s year end.

All businesses - including those in free zones, companies and individuals - are required to register. Once an application is submitted, a CT registration number (TRN) will be issued. But unlike with VAT, a ‘de-registration’ is not applicable to CT.Registration is also required even if the tax payer’s income is exempt or below the threshold of Dh375,000 per annum.Have these documents ready

Businesses need to evaluate the information requirements and their availability. “The documents required may be different based on the type of the entity and its holding structure,” said Agarwal.The documents required for CT Registration includes:

1. Main trade license details (depending on the ‘entity type’).

2. All activities of the business to be included.

3. All owners who have 25 per cent or more ownership in the entity must be added.

4. Registration will be in the name of a head office and not a branch. Branch details – trade license details, associated business activities and owners list – need to be added in the same application. In case of multiple branches across different emirates, only one CT registration is required.

5. The company address. In case of a foreign business, it is required to register, and a tax agent to be appointed.

6. Passport/Emirates ID of the taxable person. Additionally, evidence of authorization – the power of Attorney or MoA – is required in case of a legal person registrant.

7. One or more authorized signatories can be added.