[ad_1]
The Federal Tax Agency (FTA) has been inviting selected businesses to start their CT registration. Preference is given to companies whose financial year begins on June 1.
Image credit: Shutterstock
Dubai: The staggered registration approach to the UAE corporate tax scheme gives SMEs more time to get the process through in an orderly manner. At the same time, it asks tax authorities to fine-tune all relevant processes before the June 2023 corporate tax implementation date.
Tax advisor Manoj Agarwal said that currently, “large corporations and public joint stock companies (PJSCs) have been invited for CT registration through the EmaraTax platform”. “Based on their VAT registrations, the Federal Tax Agency (FTA) has information on these large companies, especially those whose financial year starts on June 1, 2023.”
This is in line with what Dr. Nabeel Ahmed, Partner at DVS Management Consulting said. “While there is no conclusive information on which specific businesses have received invitations from the FTA to allow them to register with EmaraTax, we do know that some businesses with income above a certain threshold have received these invitations. registered for tax purposes.”
Two different tax processes
According to tax advisors, while businesses in the UAE can take advantage of what they learn from registering and complying with VAT, the requirements for CT registration are quite different. For “smooth operation, most of the details of businesses already registered for VAT with the FTA are pre-populated in the CT registry,” Agarwal said.
“If businesses have all the information they need ready, it will be a smooth process. Large entities must already be following internal compliance processes. It won’t be too complicated for them to meet the requirements.
“For others, there is plenty of time to register.”
no punishment
The FTA has made it clear that there are no penalties for late registration. What businesses need to remember is to register at least before the deadline for filing their tax returns. The deadline to file a CT return with the FTA and pay the CT is 9 months after the end of the taxpayer’s year.
Who needs to register for CT
All businesses – including businesses, companies and individuals in free zones – need to register. Upon submission of the application, a CT Registration Number (TRN) will be issued. But unlike VAT, “deregistration” does not apply to CT.
Registration is required even if the taxpayer’s income is exempt or below the threshold of Dh375,000 per annum.
prepare these documents
Businesses need to assess information needs and their availability. “Depending on the type of entity and its holding structure, the required documentation may vary,” Agarwal said.
Documents required for CT registration include:
- Primary trade license details (depending on ‘Entity Type’).
- All activities of the enterprise are covered.
- All owners with 25% or more ownership in the entity must be added.
- Registration will be in the name of the head office, not the branch. Branch details – trade license details, relevant business activities and list of owners – need to be added in the same application. If multiple branches span different emirates, only one CT registration is required.
- company address. If it is a foreign enterprise, it is required to register and appoint a tax agent.
- Passport/Emirates ID of the taxpayer. Also, in the case of a legal entity registrant, proof of authorization is required – a power of attorney or MoA.
- 7. One or more authorized signatories may be added.
[ad_2]
Source link