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The Corporate Tax Law, Federal Decree-Law No. 47 of 2022, introduced a federal tax on corporations and business profits in the UAE, effective from June 1, 2023. The law outlines tax registration obligations, definitions of taxable persons, and the calculation of turnover.

Who is a Taxable Person?

Taxable persons include both natural and juridical persons, with registration generally mandatory except for specific cases. Residence status for tax purposes is based on business activities rather than physical presence.

Business and Turnover Calculation:

The law defines business and business activities broadly, covering various transactions. Turnover exceeding AED 1 million within a year makes a natural person subject to corporate tax.

Tax Registration Process:

Registration is done through the EmaraTax portal, with existing VAT or excise tax registrants using their current login. New registrants must create login credentials and submit supporting documentation.

Other Procedural Aspects:

Registered persons have administrative obligations like filing tax returns and updating registration details. The FTA can register a person for corporate tax if deemed necessary, with avenues for appeal.

Deregistration:

Natural persons ceasing business activities should deregister within three months, with clearance certificates required in case of death.

Conclusion:

Understanding the Corporate Tax Law is vital for those engaged in business activities in the UAE to ensure compliance with registration, filing, and deregistration processes, fostering a transparent tax environment. For further details, refer to Cabinet Decision No. 49 of 2023 and seek advice from tax professionals if necessary.