FTA announces Corporate Tax Registration Deadline – 90 days from Date of Incorporation/MOA. AED 10k penalty for late registration.
Corporate Tax Deregistration in UAE
Businesses in the UAE that have ceased their operations or no longer meet taxable income thresholds are required to undergo the corporate tax deregistration process. This comprehensive process involves informing the Federal Tax Authority about the deregistration, filing final returns, and paying any outstanding balances.
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Reliable Corporate Tax Deregistration in UAE
Businesses that have ceased operations or are restructuring may find it difficult to navigate the UAE’s complex corporate tax deregistration process. To guarantee compliance and prevent fines, businesses must submit applications to the Federal Tax Authority (FTA) as per the UAE tax regulations.
Arabian Wingz is here to offer knowledgeable advice to businesses to make sure all submissions and paperwork adhere to FTA regulations for the corporate deregistration process. With our understanding of corporate tax laws, we help you efficiently close your tax obligations and avoid fines or delays brought on by non-compliance. We make deregistration easy and error-free.
Key Reasons for Corporate Tax Deregistration in UAE
In the UAE, corporate tax deregistration becomes mandatory in the following major cases:
- Permanent Business Closure: Corporate tax deregistration is done when the company ceases all commercial activities and operations for an indefinite period of time.
- Change in Tax Status: The company is no longer considered a taxable entity under the UAE Corporate Tax Law.
- Expired License: The company's business license has expired and will not be renewed for future operations.
- Company Liquidation: The company has been legally dissolved via the liquidation process.
- Business Restructuring: One needs to undergo the corporate deregistration process when the company merges with another one or is acquired by another venture, or when it changes its legal form.
Eligibility Criteria for Corporate Tax Deregistration in the UAE
Deregistration can be done for businesses when the following conditions apply:
- The firm has either stopped trading or has been officially liquidated.
- The last corporate tax return has been properly filed with the FTA.
- The company has settled all tax liabilities, including taxes, fines, and penalties.
- Your business is within 3 months of ceasing its activities.
- The company has all the required documents ready, such as the liquidation confirmation letter.
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Comprehensive Overview of Step-by-Step Deregistration Process
The corporate tax deregistration process in the UAE usually includes the following steps:
- Collect all necessary and supporting business documents.
- Fill out and forward the deregistration application to the FTA along with the required documents.
- The FTA assesses your application and might ask for further explanation or extra documents.
- After successful verification, the FTA gives an official deregistration certificate.
- Inform stakeholders and ensure the cancellation of all trade or business licenses.
- Getting the help of a professional tax advisor is a good way to ensure complete compliance and an efficient deregistration process.
Corporate Tax Deregistration: Key Conditions
Before submitting an application for corporate tax deregistration in the UAE, companies must make sure that:
- All corporate tax liabilities have been paid in full.
- No fines or administrative penalties are outstanding.
- Each corporate tax return has been correctly filed and submitted to the FTA.
Essential Documents Required for Corporate Tax Deregistration
Businesses must submit the following documents to the Federal Tax Authority when applying for deregistration:
- Copy of the company’s trade or business license
- Corporate Tax Registration Number (TRN)
- Proof of liquidation or license cancellation (if applicable)
- Final financial reports or statements
- Confirmation of tax payment clearance
- Documentation that proves business closure or restructuring
The FTA may ask for further documents based on the nature and status of the business.
What Happens After Corporate Tax Deregistration?
When the FTA gives the green light for corporate tax deregistration, the following procedures are usually carried out:
Issuance of Deregistration Certificate
Your company’s exclusion from the UAE corporate tax system will be authenticated by the Deregistration Certificate, which will be issued by the Federal Tax Authority.
Final Verification Assessment
Before the FTA closes your tax account, they may perform a final review of your financial statements and past filings to ensure that you have fully complied.
End of Filing Obligations
Filing of corporate tax returns will not be your duty once deregistration is done. But according to UAE law, you are required to keep accounting and tax records for five years for possible inspections.
Stakeholder Notification
To keep the communication open and avoid any future misunderstandings, it is suggested that businesses inform suppliers, customers, and government bodies about their deregistration.
What is the Timeline for Corporate Tax Deregistration in the UAE?
The Federal Tax Authority (FTA) states that different entity types come with different deadlines for corporate tax deregistration. Here is what you need to know:
Natural Person:
The natural person should submit the deregistration application no later than three months after the date of the closure of his/her business activities.
Juridical Person:
In the case of companies and legal entities, the application must be submitted within three months after any of the events listed below:
- The legal entity is no more
- Business ceases to exist
- Formal dissolution
- Liquidation
Penalties for Late Corporate Tax Deregistration in the UAE
If the corporate tax deregistration application is not submitted within the 90-day period, there will be a penalty of AED 1,000 per month, up to a total of AED 10,000. The UAE Federal Tax Authority may also impose further fines or penalties for non-compliance. Therefore, it is necessary to execute everything on time so that your business does not face any losses.
Why Hire Arabian Wingz for Corporate Tax Deregistration in UAE?
Several reasons justify why the Arabian Wingz is one of the leading choices for your corporate tax deregistration procedure in the UAE. Here is why:
- We are fully registered and authorized tax agents in the UAE
- We have an expert corporate tax consultant team in Dubai
- Years of combined experience in tax compliance
- Client-centric approach that guarantees an efficient and easy deregistration process
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