Guide to Meeting Corporate Tax Deregistration Requirements in the UAE

With the UAE corporate tax now into effect, registration with the UAE FTA is mandatory for every taxable entity in the UAE. As the business landscape in the UAE rapidly evolves, companies may encounter such circumstances to modify their legal structure or wind down business operations. This is the point where UAE Corporate Tax DeRegistration comes into play. The process of UAE  deregistering corporate tax goes beyond paperwork. It involves strategic planning, filing the final corporate tax return, settling corporate tax liabilities, and ensuring compliance with UAE FTA regulations to prevent upcoming penalties.

Jaxa Chartered Accountants, the best corporate tax consultant in the UAE and across Dubai, helps to simplify corporate tax deregistration with ease. With our proven expertise and more than a decade of experience, our team ensures that business closes out efficiently and compliantly.

Understanding UAE Corporate Tax Deregistration

Corporate tax introduced in the UAE on June 1, 2023, is a direct tax levied on the net profit of companies at a standard rate of 9% on taxable profits above AED 375,000.

The corporate tax deregistration is an official procedure of removing a company from the UAE FTA’s corporate tax records. This process terminates corporate tax obligations and ends further filings or penalties after the business is closed or restructured.

UAE corporate tax deregistration is relevant for:

• Companies that ceased operation
• Dissolution or liquidation
• Change of legal type (in some scenarios)

Ensure that UAE corporate tax return filings and liabilities are settled before approving the deregistration by the UAE FTA.

Common Situations Leading to Corporate Tax Deregistration in the UAE

A company may need to deregister for corporate tax in the following situation:

• Permanent business closure
• Legal dissolution of the business
• Change of legal type of the business

UAE Corporate Tax Deregistration: Why It’s Essential

Skipping UAE corporate tax deregistration even after shutting down a business may create legal and financial challenges. Completing the deregistration helps businesses to:-

• Terminate tax obligations: Ends the need for submitting UAE corporate tax return filings.
• Avoid non-compliance penalties: Prevent penalties or late filing fees.
• Keep clean records: Ensure the company’s UAE FTA data is reserved for legal or business purposes.
• Smooth liquidation or restructuring: Acts as a necessary step during company closure or legal restructuring.

Partnering with Jaxa, a top corporate tax and VAT consultant as well as UAE FTA tax agent across the UAE and Dubai, guides throughout the steps of corporate tax deregistration, keeping your business compliant with the UAE FTA.

Simplified UAE Corporate Tax Deregistration Process: Jaxa Insight

The process of Corporate tax deregistration is complicated, but with the help of expert guidance, it can be best handled. Jaxa Auditors, a top taxation and accounting and auditing firm in the UAE, guides through every step of deregistration using the UAE FTA Emaratax system. The key steps of deregistration are as follows:

1. Login Emaratax portal

• Access the EmaraTax portal using UAE Pass or login credentials
• Easily navigate with the user-friendly dashboard
• Reset login details via the Forgot Password feature

2. Access Degistration Application

Navigate through the corporate tax menu and select Apply for Deregistration.

3. Provide Deregistration Data

Fill in the application mentioning the reason for deregistration and the effective end date of the business.

4. Attach Required Documentation

To complete deregistration, submit:

• Valid trade license with cancellation proof
• Final audited/management financials
• Liquidation certificate (if applicable)
• Owner’s Emirates ID/Passport copy
• Evidence of filing the final return

5. Settle Final return & payments.

Provide the final return to the UAE FTA and pay any remaining tax or penalties.

6. Final Deregistration Approval

• Once the application is accepted, businesses receive a reference number.
• Pre-approval status is updated in EmaraTax.
• When the application is approved, the UAE FTA grants a deregistration certificate, marking the official end of your Corporate Tax obligations.

Conditions for UAE Corporate Tax Deregistration

The UAE FTA has outlined key conditions to be eligible for corporate tax deregistration. Only business meetings with such criteria are eligible for deregistration.

• The business has been liquidated or permanently closed.
• All corporate tax liabilities, including penalties, have been cleared.
• The final corporate tax return is filed.
• Mandatory supporting documents, such as cancellation certificates or liquidation reports, are provided.
• The application must be submitted within three months of ceasing operations.

Timeline for UAE Corporate Deregistration

Businesses are obliged to file their corporate tax deregistration application within the stipulated deadline set by the UAE FTA. It is necessary to prevent penalties and stay compliant.

The application should be set within the set timelines:

• Judicial Entities: The application for deregistration must be submitted within 3 months of business closure, liquidation, or legal dissolution.
• For individual business owners: The application for deregistration request must be filed within 3 months of business closure.

Corporate Tax Deregistration Impact on UAE Businesses

The key benefits experienced from Jaxa clients after successful corporate tax deregistration in the UAE:

• Reduced UAE Corporate tax burden
• Hassle free compliance in Dubai and UAE
• Value of expert support: Engaging with top tax professionals in UAE helps to ensure smooth and complaint deregistration.

UAE Corporate tax Deregistration Made Easy with Jaxa Auditors

Handling corporate tax deregistration demands precision and compliance checks. Having the guidance and support from the taxation and accounting firm in Dubai, might assist clients throughout the journey.  At Jaxa Auditors, our immensely qualified accountants and tax consultants help to simplify the process of corporate tax deregistration in Dubai and UAE.

Our expertise covers:

• Professional guidance: Jaxa Auditors brings extensive knowledge in UAE tax laws and corporate tax registration and deregistration processes.
• Document support: From collection to review, our team validates all documents to meet UAE FTA requirements.
• Client centered services: We offer hands on guidance and practical insights throughout the deregistration journey,
• Seamless deregistration management: From final tax return preparation to EmaraTax submission, we handle the entire procedure for you.
• UAE FTA-Registered Agent Support: With our status as an UAE FTA-registered tax agent, we coordinate directly with the authorities to ensure compliance and seamless deregistration.

Along with corporate tax deregistration, Jaxa Chartered Accountants delivers complete compliance solutions for UAE businesses.

• Accounting & Bookkeeping
• Auditing & Assurance
• Corporate tax Registration
• Corporate tax return filing
• VAT Registration
• Vat Return filing

Stay Complaint, Stay Secure- with Jaxa Auditors

Jaxa ensures seamless deregistration with complete UAE FTA compliance and  avoids penalties. Relax while our experts manage every step with precision. Contact us Today!