Corporate Tax Deregistration in the UAE

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Corporate Tax Deregistration in the UAE

Since the introduction of corporate tax in the UAE, all taxable entities are required to register with the Federal Tax Authority (FTA). But what happens when your business shuts down, changes structure, or no longer qualifies for taxation?

That’s where Corporate Tax Deregistration comes in, and it’s not just about submitting a form. It involves proper planning, filing the final return, settling liabilities, and ensuring compliance with the FTA to avoid future penalties.

At Shuraa Tax, we make corporate tax deregistration easy and stress-free for businesses in the UAE. With our in-depth knowledge of UAE tax laws and experience handling tax exits, we ensure your business wraps up smoothly with no loose ends.

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What is Corporate Tax Deregistration?

Corporate tax is a direct tax imposed on the net income or profit of corporations and other business entities. Introduced at a standard rate of 9% on taxable profits exceeding AED 375,000, corporate tax became effective for most UAE businesses starting from June 1, 2023.

Corporate tax deregistration is the formal removal of your business entity from the FTA’s corporate tax registry. It legally ends your tax obligations and stops any further filing or penalties from being levied on your company post-closure or restructuring.

It applies to:

Companies that are liquidated or shut down
Businesses that are merged or acquired
Entities that no longer meet the tax threshold
Temporary businesses whose license has not been renewed

You are still required to file your final tax return and clear any outstanding dues before your deregistration is accepted by the FTA.

What are the Reasons for Corporate Tax Deregistration in UAE?

Here are common scenarios where UAE corporate tax deregistration is necessary:

Business Closure: The company ceases all business operations permanently.
Company Liquidation: The business is formally dissolved through a liquidation process.
Business Restructuring: Merging or acquiring another business or shifting from one legal structure to another.
Change in Tax Status: The business has undergone a structural change or is no longer considered a "taxable person" under the UAE Corporate Tax Law.
License Expiry with No Renewal: The business license is not renewed, and there are no future plans of reactivation.

Why is Corporate Tax Deregistration Important?

Failing to deregister, even if a business has ceased operations, can lead to significant issues. By formally deregistering, a business:

Ends Legal Obligations: It officially terminates the requirement to submit future corporate tax filings.
Avoids Penalties: It prevents the accumulation of late filing fees and other non-compliance penalties, even if no tax is due.
Ensures a Clean Record: It keeps the company's record with the FTA clean for any future ventures or legal requirements.
Facilitates Liquidation: It is a vital step in the liquidation or restructuring process of a company.

What is the Eligibility to Deregister from the UAE Corporate Tax?

You are eligible to apply for corporate tax deregistration if:

Your business has officially ceased operations or is in liquidation.
You have no pending tax dues or fines.
Your final corporate tax return has been filed.
All supporting documents (e.g., liquidation letters, cancellation certificates) are available.
You are within 3 months of ceasing business activities.

When to File an Application for Corporate Tax Deregistration in UAE?

Timing is crucial to avoid penalties. The Federal Tax Authority requires a deregistration application to be submitted within a specific timeframe:

For a Juridical Person (Legal Entity): The application must be filed within three months of the date the entity ceases to exist, or from the date of cessation of the business, dissolution, or liquidation.
For a Natural Person (Individual Business Owner): The application must be filed within three months of the date of cessation of the business or business activity.

What is the the Process of Corporate Tax Deregistration in UAE?

The deregistration process is conducted through the FTA's online platform, EmaraTax. While the exact steps can vary slightly depending on the business's situation, the general process includes:

1. Access the EmaraTax Portal

2. Initiate Deregistration

Navigate to the corporate tax section and select the deregistration application.

3. Provide Information

Fill out the application with the required details, including the reason for deregistration and the effective date of cessation.

4. Upload Supporting Documents

Submit all necessary documentation, such as:

Valid Trade License and its cancellation document
Final audited or management financials
Liquidation certificate (if applicable)
Passport/Emirates ID of owner(s)
Proof of final return submission

5. File Final Return & Settle Liabilities

Ensure your final tax return is submitted and all outstanding taxes and penalties are paid.

6. Submit the Application

Review all the details and submit the application for the FTA's review.

7. Receive Confirmation

The FTA will review the application and, if approved, issue a deregistration certificate, officially confirming the cancellation of your Corporate Tax registration.

Let’s Get You Deregistered

How Shuraa Tax Assists with Corporate Tax Deregistration?

At Shuraa Tax, our team of qualified accountants and tax advisors in Dubai provides expert assistance to ensure a seamless and compliant process. Our services include:

Eligibility Assessment

We assess your business's eligibility for deregistration and guide you on the best course of action.

Documentation Preparation

We help you gather and prepare all the necessary documentation required for the application.

Application Management

We handle the entire application process on your behalf, from filing the final return to submitting the deregistration request on the EmaraTax portal.

Liaison with the FTA

We act as a liaison with the Federal Tax Authority, responding to any queries and ensuring a smooth approval process.

Proactive Compliance

We help you stay ahead of deadlines and avoid penalties by providing timely reminders and expert advice.

Beyond deregistration, Shuraa Tax provides a comprehensive suite of UAE corporate tax and other taxation services to support your business's financial health and compliance in the UAE. Our services include:

Ready to Deregister Your Corporate Tax?

Let Shuraa Tax guide you through the process quickly, legally, and stress-free. Avoid unnecessary penalties and get peace of mind knowing everything is handled by experts.

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Frequently Asked Questions

Corporate Tax Deregistration is the official process of canceling a company's Corporate Tax registration with the Federal Tax Authority (FTA). This is required when a business ceases to exist as a taxable person in the UAE.

Yes, if they were registered under corporate tax and are ceasing operations or changing structure, they must deregister accordingly.

You must apply for deregistration within three months of the date your business ceases to exist, or from the date of cessation of business, dissolution, or liquidation.

No, you must settle all outstanding corporate tax liabilities and administrative penalties before the FTA will approve your deregistration application.

Shuraa Tax assists with the entire deregistration process by preparing and submitting the application, ensuring all documentation is in order, settling any outstanding liabilities, and liaising with the FTA on your behalf to ensure a smooth and compliant exit.