December 27, 2023 | Byadmin | All companies in UAE shall register for Corporate Tax including FZ companies. Any reliefs (Small business reliefs, business restructuring reliefs, qualifying group reliefs etc.) are applicable only while filing the Corporate Tax returns. Below table will give a clarity on the taxability and registration requirements as per UAE Corporate Tax.StatusPersonTaxability on IncomeRegistration & return filing for CT requirementRemarksResident Person*JuridicalWorldwide Income will be taxable except exempt incomeYes NaturalIncome from UAE through business or business activity and Income from outside UAE which connected with business activity in the UAE.Yes, If the annual turnover ( from Jan to Dec ) is more than 1 Million DirhamIncome from Salary, Wages, Real Estate Investment & Personal investment (which does not require a license) , are not consider while checking the threshold of 1 Million DirhamNon-ResidentJuridicalPermanent EstablishmentYesIncome attributable to the PE will be taxable in UAEIncome through Nexus in UAEYesIncome from Immovable Property located in UAE is currently classified as NexusUAE Sourced Income**NoWithholding tax applicable (Currently it is 0%)NaturalPermanent EstablishmentYesIncome attributable to the PE will be taxable in UAEUAE Sourced Income**NoWithholding tax applicable (Currently it is 0%) Below are considered as Resident Person for Corporate Tax purposeAll companies incorporated/established/recognized as per UAE applicable legislationA company which is incorporated/established/recognized as per the foreign legislation, but effectively managed and controlled in the UAE.A Natural person who conducts business or business activity in UAE. UAE Sourced income – Some examplesIncome from the sale of goods in the stateIncome from services rendered or utilized or benefitted from the UAE ( Example:- GameIncome from movable or Immovable property in the UAE.Income from sale of shares of a resident person.Income from contract performed in the UAE.Income from use or right to use of intellectual or intangible property in the UAE.Interest earned from UAE subject to conditionsInsurance or reinsurance premium earned from UAE subject to condition. Frequently Asked Questions Who will be required to register for UAE Corporate Tax? All Taxable Persons will be required to register for UAE Corporate Tax and obtain a Corporate Tax Registration Number.Non-Resident Persons earning State Sourced Income that do not have a Permanent Establishment or nexus in the UAE do not need to register. This is because they will not have a Corporate Tax liability in the UAE and their home jurisdiction will have primary taxing rights.Persons seeking to be exempt from Corporate Tax upon application to the Federal Tax Authority (for example an investment fund seeking to be treated as a Qualifying Investment Fund) must first register with the Federal Tax Authority before they can make an application to be exempt from Corporate Tax. When do I register for UAE Corporate Tax? All Taxable Persons must be registered before they file their first Corporate Tax Return. The Federal Tax Authority may register a Taxable Person, who is not otherwise registered, at their discretion. Will a Free Zone Person be required to register and file a UAE Corporate Tax return? Yes. All Free Zone Persons will be required to register, obtain a Tax Registration Number, and file a Corporate Tax return, irrespective of whether they are a Qualifying Free Zone Person or not. I am already registered for VAT purposes. Do I have to register for UAE Corporate Tax? Yes. Taxable Persons will be required to register for UAE Corporate Tax (and update their details, if required), even if they are already registered for VAT. Will businesses be required to register for Corporate Tax if they are exempt from Corporate Tax or have no tax liability? All Taxable Persons, including those with no Corporate Tax liability, will be required to register for Corporate Tax and obtain a Corporate Tax Registration Number.Public and qualifying private pension funds and social security funds, Qualifying Investment Funds, and juridical persons owned by certain Exempt Persons will also need to register for Corporate Tax before they can be exempt from Corporate Tax.Qualifying Public Benefit Entities that are listed in Cabinet Decision No. 37 of 2023 or any subsequent relevant decisions must also register for Corporate Tax.Government Entities, Government Controlled Entities and Extractive Businesses and Non-Extractive Natural Resource Businesses that meet the relevant conditions in the Corporate Tax Law must register for Corporate Tax if they conduct a taxable business. 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August 16, 2023 | ByMarketing | Corporate Tax Registration Amendment.To amend Corporate Tax Registration in the UAE, you can follow these steps:1. Notify the Federal Tax Authority (FTA) about the changes in writing.2. This can be done by submitting an application for amendment of registration within 20 business days from the date of the change in circumstances.3. If the FTA approves the changes, you can proceed with amending the details. This can typically be done online through the FTA portal. You will need to log in to your FTA account and access the Corporate Tax registration section.4. Follow the instructions provided by the FTA to initiate the Corporate Tax Amendment application. This may involve clicking on ‘Actions’ in the Corporate Tax tile and selecting ‘Amend’.5. Provide the necessary information and update the required fields with the correct details. This may include changes to company information, contact details, or any other relevant information.6. Review the amended registration details to ensure accuracy and completeness.7. Submit the amended registration application to the FTA for processing.It is important to note that specific procedures and requirements may vary, and it is advisable to consult the official resources provided by the FTA or seek professional assistance to ensure compliance with the regulations and guidelines for amending Corporate Tax Registration in the UAE.How long does it take to process the amendment of corporate tax registration in UAE?The processing time may depend on various factors such as the nature of the changes being made, the completeness and accuracy of the information provided, and the workload of the Federal Tax Authority (FTA). However, it is advisable to submit the application for amendment of registration within 20 business days from the date of the change in circumstances.It is also important to ensure that all the required documents are submitted correctly and the information provided is accurate to avoid any delays in processing the amendment application. If you require more information on the processing time, it is advisable to consult the official resources provided by the FTA or seek professional assistance.What are the consequences of not amending corporate tax registration in UAE1. Non-compliance – Failure to amend corporate tax registration in accordance with the requirements set by the Federal Tax Authority (FTA) may result in non-compliance with the tax laws and regulations in the UAE. This can lead to penalties, fines, or other enforcement actions by the FTA.2. Inaccurate Tax Reporting – if the corporate tax registration is not amended to reflect changes in the company, it may lead to inaccurate tax reporting. This can end in incorrect calculation of taxable income, potential underpayment or overpayment of taxes, and potential audits or investigations conducted by the tax authorities.3. Penalties and Fines – non-compliance with the corporate tax registration requirements may result in penalties and fines imposed by the FTA. The specific penalties and fines may vary depending on the nature and severity of the non-compliance.4. Legal Consequences – non-compliance with tax registration requirements may have legal consequences such as potential legal disputes and legal actions imposed by the tax authorities or other relevant authorities.5. Impact on Business Economy – non-compliance with tax registration requirements can negatively impact the reputation of the business. It may raise concerns among stakeholders, including clients, suppliers, and investors, regarding the company’s compliance with legal and regulatory obligations.Reach us for any assistance required for Corporate Tax services and get a comprehensive advisory from our team of experts. Flyingcolour Tax Consultant LLC is ready to help you attain the financial freedom you aspire.