Corporate Tax Registration

Corporate Tax Registration in UAE

 

For Indian companies, all your companies in the UAE need to register for Corporate Tax and this includes companies in Free Zones (FZ). Note that any tax reliefs (small business reliefs, business restructuring reliefs, qualifying group reliefs etc.) are applicable only at the time of filing the Corporate Tax returns. The table below will give you more clarity on taxability and registration requirements as per UAE Corporate Tax law.

Status
Person
Taxability on Income
Registration & return filing for CT requirement
Remarks
Juridical
Worldwide Income will be taxable except exempt income
Yes
Resident Person*
Natural
Income 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 Dirham
Income from Salary, Wages, Real Estate Investment & Personal investment (which does not require a license), are not considered while checking the threshold of 1 Million Dirham
Permanent Establishment
Yes
Income attributable to the PE will be taxable in UAE
Juridical
Income through Nexus in UAE
Yes
Income from Immovable Property located in UAE is currently classified as Nexus
Non-Resident
Yes
Yes
Income attributable to the PE will be taxable in UAE
Natural
UAE Sourced Income**
No
Withholding tax applicable (Currently it is 0%)
UAE Sourced Income**
No
Withholding tax applicable (Currently it is 0%)

For the purpose of UAE Corporate Tax, a Resident Person is

Company1

All companies that are incorporated, established or otherwise recognized as per the applicable legislation of the UAE.

Globe2

A company that is incorporated or established under foreign laws (e.g. a company registered in India) but is effectively managed and controlled from within the UAE.

User12

An individual (a 'Natural Person'), e.g. an Indian entrepreneur, who conducts a business or business activity in the UAE.

UAE Sourced Income – Some examples

Ctreg
 
Income generated from sale of goods within the UAE.* Income from services performed, utilized or benefitted in the UAE.
 

Income earned from movable or immovable property in the UAE, e.g. rental income for Indian property owners.

Income earned from sale of shares of a company resident in the UAE.

Income generated from a contract performed or executed in the UAE.

Income derived from the use of, or the right to use, any intellectual or intangible property in the UAE.

Interest income from the UAE, subject to specific conditions.

Insurance or reinsurance premiums earned from the UAE, subject to specific conditions.

Frequently Asked Questions

All Taxable Persons, including Indian-owned businesses, need to register for UAE Corporate Tax and get a Corporate Tax Registration Number. However, Non-Resident Persons who earn UAE Sourced Income without having a Permanent Establishment or nexus in the UAE are exempt from registration.

All Taxable Persons need to register before filing their first Corporate Tax Return. The Federal Tax Authority (FTA) has the authority to register any Taxable Person who has not yet complied with this requirement.

Yes, all Free Zone Persons, whether they are a Qualifying Free Zone Person or not, need to register, get a Tax Registration Number, and file a Corporate Tax return. This is mandatory for Indian businesses operating in any UAE free zone.

Yes, even if your UAE business is already registered for VAT, you must complete a separate registration for UAE Corporate Tax and update your details with the FTA if necessary.

Relevant Blogs

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For our Indian clients, Flyingcolour® Tax Consultant and J N J Auditing LLC provides accounting and bookkeeping services in the UAE, tax services, auditing, Economic Substance Regulation (ESR) services, anti-money laundering compliance services, tax residency certificate assistance, payroll services, excise tax services, other compliance and CFO services, etc. through our team of experts. We offer Indian businesses customized and bundled packages as per their requirements in the UAE.

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