Corporate Tax Deregistration in UAE
Do you know that the UAE has implemented a Corporate Tax of 9% on businesses that earn above AED 375,000* in the UAE? It means you must get yourself register for Corporate Tax if you earn more than AED 375,000* from your business in the UAE. However, there are a few circumstances where you must deregister yourself from the UAE Corporate Tax.
Today, we will discuss circumstances in which you must perform Corporate Tax deregistration in the UAE. Moreover, we will dive into the process to deregister your business from the Corporate Tax in the UAE.
Reasons for Corporate Tax deregistration in the UAE
Corporate Tax consultants, like Flyingcolour Tax Consultants, understand the circumstances where you want to deregister your business from the Corporate Tax in the UAE. Therefore, we recommend you move forward to deregister your business from this tax in the following cases:
Business Closer: Regardless of the reason whether it is bankruptcy, insolvency, or a conscious decision to end your business, you should deregister your business if you are closing your business operation.
Transfer of ownership: When you are making changes in ownership of your business, the new owner may become accountable for tax liabilities as per the UAE tax authority guidelines. In these cases, you might have to deregister yourself from the Corporate Tax in the UAE.
Changes in legal structure: Acquisition, Merger, or conversion to other company forms need a review of tax liabilities. At this stage, you might also want to deregister your company from Corporate Tax in the UAE.
Besides these circumstances, there might be other reasons to deregister your business from the UAE Corporate Tax. Flyingcolour Tax Consultants can help you to understand these reasons.
When Should You Submit Your Corporate Tax Deregistration Application
Suppose you fall into a situation where you must deregister your business from the UAE Corporate Tax. In that case, you should look for the right time to submit your application for Corporate Tax deregistration in the UAE. The following is the discloser of the right time when you should submit your application for Corporate Tax deregistration:
As a natural person, you have three months before the last date for your business to file.
As a Legal entity, you have three months before the exact date of your liquidation, dissolution, and other reasons to file a complaint.
In short, whether you are a natural individual or a legal entity, you will have at least three months to submit the Corporate Tax deregistration application.
Benefits of deregistering Corporate Tax in the UAE
By deregistering the Corporate Tax of your company in the UAE, you can enjoy the following benefits:
You can enjoy significant financial savings when you deregister your business from the Corporate Tax in the UAE.
You can make compliance requirements simpler by eliminating the need to file Corporate Tax returns for your business in the UAE.
You may face limitations on your ability to engage in certain activities or access government benefits or incentives.
How to apply for deregistration of Corporate Tax in the UAE
Once figuring out the key requirements and the right time to submit your application for the deregistration of Corporate Tax in the UAE, you should move forward to the main process of deregistering your company from the UAE Corporate Tax. The following are the steps that you should follow for Corporate Tax deregistration in the UAE:
1. Login into EmaraTax
Initially, you should log in with your account to deregister your business from the Corporate Tax in the United Arab Emirates (UAE). Here, you can use the UAE pass or login credentials to get access to the EmaraTax platform.
You can easily log in to this platform because it has a streamlined interface that simplifies the whole process of logging. In case you forgot your account’s password, you can use the tool “Forgot Password” available on this platform to let you reset your passport.
2. Go to the Corporate Tax Tile
Once you have logged in to your account, you should click on the “Action” button under the Corporate Tax tile within the taxable person dashboard to begin the UAE Corporate Tax Deregistration application.
3. Complete the application.
After opening the application for deregistration of your business from the Corporate Tax in the UAE, you should start filling out your application with accurate information. Here, you should understand the fact that the application is divided into two different sections with each section represented in the progress bar. Therefore, you should fill out the application carefully with proper details.
You are required to enter details like the date of cessation of your business or its activity and the reason for cessation of your business. In addition, you should attach any supporting documents with your application for Corporate Tax deregistration in the UAE. Here, you might also want to add your buyers or transferee details (if required).
4. Check and submit your application
Once completing the application for your business Corporate Tax deregistration in the UAE, you should carefully recheck or proofread your application to eliminate any chance of rejection. Remember, the accuracy of the application is essential. Therefore, you should examine all the information you provided by submitting it to the FTA. After submitting the application, the FTA conducts a deep examination and might ask you for additional information.
5. Get confirmation
If your application for Corporate Tax deregistration gets approved, you will receive a reference number for your submitted application. After the FTA confirms the acceptance of the Corporate Tax deregistration application, you will be notified of the pre-approval. You may also need to submit the last tax return, which will be generated by the official portal of the EmaraTax.
How can Flyingcolour Tax Consultant help you?
The complexities of Corporate Tax deregistration in the UAE require proper knowledge and experience to navigate. Flyingcolour Tax Consultant has a team of experts who can help you complete the process of Corporate Tax deregistration. In addition, our experts can guide you to the easiest path to Corporate Tax deregistration in the UAE.
To learn more about Key Requirements for Corporate Tax Deregistration in the UAE, book a free consultation with one of the Flyingcolour team advisors.
Disclaimer: The information provided in this blog is based on our understanding of current tax laws and regulations. It is intended for general informational purposes only and does not constitute professional tax advice, consultation, or representation. The author and publisher are not responsible for any errors or omissions, or for any actions taken based on the information contained in this blog.