Administrative aspects under the UAE Corporate Tax Regime

Basic compliance requirements under the UAE Corporate Tax Regime

1. Registration*
   • Taxable Persons, irrespective of the level of income or the status of the company, that are subject to the Corporate Tax regime shall register with the Federal Tax Authority (‘FTA’) and obtain a Tax Registration Number (‘TRN’).
   • Few Persons falling under the exempted categories of Persons may also be required to register and obtain a TRN.
   • The registration will be electronic through the website of the FTA.
2. Deregistration*
   • If a company ceases to exist or liquidates, apply for deregistration to the FTA.
   • FTA will deregister only after the return has been filed and the outstanding taxes (if any) have been paid.
3. Payment of Tax
   • Compute tax liability based on self-assessment.
   • Pay the tax liability within 9 months of the end of the relevant tax period.
   • No requirement to pay advance tax or provisional tax.
4. Filing of corporate tax return
   • File tax returns within 9 months from the end of the relevant tax period.
   • No requirement to file a provisional tax return.
   • The FTA will release the format and other related supporting schedules of the Corporate Tax return form in due course.

Assessment, Clarifications, and Transitional Rules Assessment

• The corporate Tax regime is based on the self-assessment principle.
• FTA will review the Corporate Tax return within the prescribed timeframe specified in law and have power to undertake an assessment of the same
• If there is any adjustment to the income offered to tax subsequent to FTA’s assessment, then the taxpayers shall have a right to apply for reconsideration in accordance with the prescribed procedures and timelines.

Clarifications from FTA

• Taxpayers can obtain clarification from the FTA and subject to its approval can execute an advance pricing agreement for a particular transaction/arrangement proposed to be entered or already entered.
• The application shall be made in the form and manner prescribed by the authority.

Transitional Rules

• The opening balance sheet for Corporate Tax purposes would generally be the closing balance sheet prepared for financial reporting purposes for the period that ends immediately before the first tax period begins.
• The opening balance sheet shall be prepared after taking into consideration the arm's length principle.

*Currently, the Corporate Tax Decree Law is silent on the procedure to register/deregister with the FTA which is likely to be clarified in due course of time.

This document is prepared on perusal of the Federal Decree-Law No. 47 of 2022 on “Taxation of Corporation and Businesses” issued by the Ministry of Finance (‘MOF’), UAE on 9th December 2022 along with the FAQs. We reserve the copyright of this document and hence, do not allow anyone to sell, re-publish or re-distribute the document or derivatives thereof.