What is a Tax Clearance Certificate?
The Tax Clearance Certificate is given based on your trade license and it confirms your standing tax affairs are in order with the FTA.
This is called the “No Liability Certificate”
Any operating registered UAE business can get the FTA Clearance Certificate, available in the following 4 cases:
- Below the Voluntary VAT threshold
- Below the Mandatory VAT threshold
- Not making taxable supplies in UAE.
Required Documents
- Valid Trade License / Business License
- Financial statement from the date of incorporation till the date of application.
- Declaration letter that the Mandatory/voluntary threshold will not be reached in the next 30 days.
- Business Flow chart.
- Declaration letter for no business in UAE & GCC
- Taxable supply declaration from the date of incorporation till the date of request.
- Taxable expense declaration from the date of incorporation till the date of request.
- Authorized Signatory letter
- Reason for requesting the certificate
HOW CAN WE HELP?
Flying Colour as an entity provides VAT advisory, optimization, registration, implementation, compliance, and training services in UAE.
Our team of senior qualified tax advisors, finance experts, and tax accountants are happy to provide practical help and advice, which will ensure timely and cost-effective VAT services.
Based on our expertise, we believe that VAT is a complex tax that will undoubtedly undergo multiple modifications in the coming years. Flyingcolour’s VAT services are aimed to suit both basic and complex returns for SMEs and larger enterprises.
To learn more about Tax Clearance Certificate from the Federal Tax Authority, 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.