Getting Registered for Taxes - A Simple Step-by-Step Guide
Paying taxes. Not exactly something most of us look forward to. But registering with the tax authorities doesn’t have to be painful. This guide will walk you through the key steps to get registered, so you can check it off your to-do list and move on to more enjoyable things!
You may be not aware but you can also avail help from professional service providers for this. There are many reputed tax consulting firms in Dubai that can help you. Read on to know more.
Why Should I Register?
If you earn income in the UAE, registration is a legal requirement. The authorities need to know about your business activities to ensure taxes are paid correctly. Registering also allows you to claim any tax refunds or credits you may be eligible for. Finally, it avoids getting into trouble for non-compliance. Fines can be steep, so it's best to get it done right away. You can either do it yourself or for more safety get one of the top accounting firms in Dubai to help you.
How Do I Apply?
Registration is easy via the online portal, EmaraTax. If you already have VAT or Excise Tax registration, simply use your existing login credentials to add a Corporate Tax profile. For new registrants, provide some basic personal and business details to create your account. The online application form is intuitive and guides you through each step. Even though it is an easy process, you may find it confusing if you do not have enough financial knowledge. This is where tax services companies in Dubai can help you.
What Supporting Documents Will I Need?
Very little is required for a straightforward application. Have your Emirates ID and business license handy. Financial statements or bank account information may be requested if relevant. But the tax authority aims to avoid over-burdening small businesses. If more is needed later, they’ll be in touch.
How Long Does Approval Take?
Processing times are impressively fast - just 20 business days upon receipt of a complete application! If queries crop up, the tax authority may ask you to submit clarifying documents, which resets the 20-day counter when received. To avoid delays, be responsive to such requests and provide accurate application details upfront.
What Happens After I'm Registered?
Congratulations, you are now formally registered for Corporate Taxes! A Tax Registration Number (TRN) will be allotted, which should be quoted on all tax documents. You gain access to the online tax profile to file returns, make payments, and manage registration details. Even though you can do this yourself, but there are also many corporate tax consultants in UAE that can help you.
A few routine compliance aspects also apply:
- File Corporate Tax Returns annually
- Pay taxes owed within 9 months of your financial year-end
- Maintain business records properly for audit purposes
- Inform authorities of any registration changes within 20 days
- Comply with relevant tax obligations
Getting compliant takes some effort but prevents future headaches. However, this process may involve a lot of technical jargon which an average person does not understand. This where the professional expertise of accounting companies in Dubai can help you.
Choosing Your Tax Period
When registering, you must select an appropriate Tax Period which will determine when Tax Returns and payments are due. For most businesses the Tax Period will be January-December, in line with the calendar year. However, you can request a different 12-month period, for example, July-June based on your financial year. This provides some flexibility for businesses not following the calendar year. Just ensure proper records are maintained for the chosen Tax Period.
Determining Tax Residency
Corporate Tax applies primarily to UAE tax residents. Residency is assessed based on various factors like incorporation location, company management, control exercised in the UAE, etc. The registration process determines if you meet the tax residence test under UAE Corporate Tax regulations. Additional documents may sometimes be sought if residency status needs further verification.
Associated Businesses and Branches
If your business has branches or other associated legal entities in the UAE, you can register them under one combined tax registration. A single TRN can be obtained to report for all associated businesses. Alternatively, you may apply for separate registration if preferred. Discuss your group structure with the registration authority to determine the optimal approach.
Exemptions and Exclusions
Certain business types and activities attract tax exemptions or exclusions under UAE Corporate Tax rules. For instance, sole proprietors, partnerships, minimum substance entities, etc. may not need to register at all. Some sectors like natural resource extraction have specific carve-outs too. Understand if any such exemptions apply before initiating registration.
Issues and Updates After Registration
Post-registration, intimate the authorities about key business updates like change of ownership, new business activities, mergers & acquisitions, etc. which call for changes in your tax profile and obligations. You can also reach out for clarifications on tax residency rules, associated business registration, or any aspect needing help. Stay compliant by keeping your tax status current.
Getting Expert Help
Specialized tax advisory firms like PROFITZ ADVISORY can help demystify the entire process for businesses and individuals alike. We are one of the top corporate tax consultants in dubai and specialize in managing tax registrations and compliance obligations on your behalf so you can relax knowing it is handled reliably. From application formalities to documentation to managing your tax profiles seamlessly year after year, reputed tax experts provide comprehensive assistance customized to your specific business scenario and needs. So do consider availing professional services of tax consulting firms in dubai if you wish to fast track registrations or want ongoing tax affairs managed without hassles while you drive business growth!
