Corporate Tax Deregistration

Corporate Tax Deregistration
August 11, 2023Dated:  | |

Below is the detailed steps to deregister from Corporate Tax in UAE:

  1. File a tax deregistration application – To deregister from the UAE corporate tax regime, a person must file a tax deregistration application with the Federal Tax Authority (FTA).
  1. Submit the application within the prescribed timeline – The natural person must file a tax deregistration application within three months of the date of cessation of the business or business activity.
  1. Await confirmation from the FTA – After submitting the application, the FTA will review it, confirm the de-registration and issue a deregistration certificate.

What are the consequences of not deregistering from corporate tax in UAE

If a business fails to deregister from corporate tax in the UAE, there may be consequences such as:

  1. Penalties: The Federal Tax Authority (FTA) may impose penalties for non-compliance with the corporate tax law, including failure to deregister.
  1. Continued obligations: The business may still be required to file tax returns and pay corporate tax, even if it has ceased operations or is no longer subject to corporate tax.
  1. Legal issues: Failure to comply with the corporate tax law may result in legal issues, such as fines or legal action.

It’s important to note that the FTA will deregister a business if it is satisfied that the person has filed corporate tax returns and settled all of its corporate tax liabilities and penalties that are due for all periods up to and including the date of cessation.

Therefore, it’s crucial to follow the proper deregistration procedures to avoid any potential consequences. If you have any questions or need further assistance you can get in touch with us or you can refer to the Corporate Tax FAQ provided by the UAE Ministry of Finance or contact the FTA.

Reach and speak to one of our tax advisors to clear out any doubts and let us handle your Tax concerns, Flying Colour Tax Consultant LLC got you covered. 

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