Quarterly Newsletter 

United Arab Emirates – Corporate Tax Update

Federal Tax Authority (FTA) puts in place registration for Corporate Tax (CT)

On 22 January 2023, FTA launched registration for CT through EmaraTax platform. All taxable persons (both legal and natural) are required to register for CT and obtain a Tax Registration Number (TRN). The TRN for CT is not the same as the TRN for VAT (Value Added Tax).

A taxable person has time upto the date of filing of first tax return to register itself. For instance, in case of taxable persons with a financial year ending 31 December, a registration period until 30 September 2025 is available.

FTA has released a user manual containing instructions to navigate through the EmaraTax platform.

Login to EmaraTax platform using UAE PASS

On 16 January 2023, the FTA has released a step-by-step guidance to login to the EmaraTax platform using the UAE PASS account. The UAE PASS application is the first national digital identity and signature solution in UAE.

With the above initiative, the FTA further aims to promote digitalization of tax services and make it accessible to all the stakeholders.

The UAE Ministry of Finance (MOF) confirms the taxable income threshold under the new CT regime.

 The MOF has published the Cabinet Decision No. 116 of 2022 regarding the taxable income threshold for CT as tabulated below:

The threshold reflects the competitiveness of the UAE’s CT regime and is an indication of support for small businesses in UAE.

UAE PASS application enables users to identify themselves to government service providers in all emirates through a smartphone-based authentication. It also enables users to sign documents digitally with a high level of security.