UAE starts corporate tax registration

Abu Dhabi, The Gulf Observer: The UAE has started early corporate tax registration for certain categories of companies operating in the country ahead of its implementation later this year.

The chosen companies will receive invitations from the Federal Tax Authority to register using the EmaraTax platform for digital services, the UAE’s regulator said in a statement on Sunday.

Following the early registration phase, which is available until May, the FTA will open the process for other companies and businesses.

Last January, the UAE introduced the federal corporate tax with a standard statutory rate of 9 per cent, which will come into effect for businesses whose financial year starts on or after June 1 this year.

The country issued the federal corporate tax law last year, bringing the income of companies exceeding Dh375,000 ($102,000) within the taxable bracket.

Taxable profits below that threshold will be subject to a 0 per cent rate.

No corporate tax will apply on salaries or other personal income from employment — be it in the government, semi-governmental entities or the private sector, the Ministry of Finance said.

“When registration opens, priority will be given to companies and businesses that have a financial year starting on June 1, 2023,” the FTA said on Sunday.

“The FTA will make sure to give ample time for companies and businesses to apply for registration and meet their legal obligations.”