Reliable Corporate Tax Consultants in Dubai

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.

Contact Us

Get Support From Experts

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:

Need Corporate Tax Clarity?

Chat With Us Live

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:

Essential Documents Required for Corporate Tax Deregistration

Businesses must submit the following documents to the Federal Tax Authority when applying for deregistration:

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.