Corporate Tax Registration

Corporate Tax Registration in UAE

 

For Pakistani companies, it is a must for all your businesses in the UAE to register for Corporate Tax, including those in Free Zones (FZ). It is important to know that any tax relief (like small business relief) can only be applied for when you file your Corporate Tax return. The table below gives you a clear idea of who needs to register and pay tax under the 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%)

Below are considered as Resident Person for Corporate Tax purpose

Company1

Any company that is set up or legally recognized under UAE law.

Globe2

A company that is set up under foreign law (like a company registered in Pakistan) but is managed and controlled from inside the UAE.

User12

An individual (like a Pakistani entrepreneur) who runs a business or does business activities in the UAE.

UAE Sourced Income – Some examples

Ctreg
 
Income from selling goods inside the UAE.
 
Income from services that are done or used in the UAE.
 
Income from property in the UAE, like rent for Pakistani property owners.
 
Income from selling shares of a UAE-resident company.
 
Income from a contract that is carried out in the UAE.
 
Income from using intellectual property (like a brand name) in the UAE.
 
Interest income from the UAE, with certain conditions.
 
Insurance premiums from the UAE, with certain conditions.

Frequently Asked Questions

All businesses, including Pakistani-owned businesses, must register for UAE Corporate Tax and get a Tax Registration Number. However, non-residents who earn income from the UAE but do not have a Permanent Establishment are exempt from registering.

All businesses need to register before they file their first Corporate Tax Return. The Federal Tax Authority (FTA) can also register any business that has not done so.

Yes, all Free Zone businesses, whether they are a 'Qualifying Free Zone Person' or not, must register, get a Tax Registration Number, and file a Corporate Tax return. This is required for Pakistani businesses in any UAE free zone.

Yes, even if your UAE business is already registered for VAT, you still need to complete a separate registration for UAE Corporate Tax.

Yes, all businesses, including those with no tax to pay, must register for Corporate Tax and get a Tax Registration Number. This also applies to certain exempt entities like pension funds and investment funds.

Relevant Blogs

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Registration Requirement Under UAE Corporate Tax

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