UAE is now known as a hub for the global corporate sector, enhancing progress, and encouraging innovation. It fascinates companies from all corners of the world. The UAE was prominent as a tax-free land. But now, after the implementation of corporate tax UAE laws, it has reformed the whole picture. The UAE authorities have recently provided an important update about the corporate tax UAE registration. They also provide important information about the Corporate Tax for Non-Resident Persons. In this article, we will see the important points about Corporate Tax Registration for Non-Resident Persons.
Who is subject to the corporate tax UAE?
Corporate tax UAE applies to several categories of businesses such as;
ü Resident persons
Any person or entity running a business that is incorporated in the UAE is subject to corporate tax if their turnover surpasses AED 1 million.
ü Non-Resident persons
Any person or entity running a company with a permanent formation in the UAE is also subject to corporate tax if the taxable income is up to and including AED 1 million annually.
Who is exempted from the corporate tax UAE?
Some entities are also exempted and enjoy 0% corporate tax if they pass certain conditions. The exempted entities are;
- UAE government entities
- UAE government-handled entities
- Qualifying community benefit entities
- Qualifying investment funds
- Businesses involved in extracting natural resources such as oil and gas companies
- Businesses involved in non-extractive natural resources
What is the procedure for Corporate Tax Registration for Non-Resident Persons in the UAE?
The complete procedure for corporate tax registration particularly for non-resident persons in the UAE includes numerous key steps. These steps ensure compliance with the UAE’s Federal Tax Authority protocols.
1. Confirm Eligibility
The primary step of Corporate Tax Registration for Non-Resident Persons in the UAE is to check whether non-resident persons are eligible for corporate tax or not. They must first determine if they have a taxable presence in the UAE or not. This can be governed through;
- Having a permanent establishment
- Earning UAE-sourced income
- Meeting other criteria set by the FTA
2. Gather Essential Documents
After determining whether non-resident persons are eligible for the corporate tax UAE, the next step is to gather all the required documents such as;
- Business license to prove the legal operation of the business
- Copy of passport and identification card of the company’s directors and stakeholders
- The business address of the entity
- Recent financial statements to validate business activity
3. Access the application portal
After gathering all the documents, go to the FTA website portal and log into your account. If you do not have already a previous account, you have to sign up to make an account by providing the required information.
4. Fill out the Registration Form
After logging in to your account, click on the corporate tax registration form. You have to provide accurate and comprehensive information about your business. It includes
- Company information such as official name, trade name, etc.
- Ownership Details such as information on stakeholders and their respective shares
- Contact Information
- Bank Account Details and Transactions
5. Submit the Application
After accurately filling in all the required fields along attaching all necessary documents, the next step is to review the application for double-checking. After that, submit the application. You may receive an email directly.
6. Approval
After submission, the FTA will evaluate your application. Sometimes they need additional information so you may have to provide it promptly.
7. Get the Tax Registration Number
After approving your application, you will get a Tax Registration Number. This TRN number is important for all upcoming tax-linked activities and filings for non-resident persons.
8. Post-Registration Compliance
After receiving the TRN, the most important step is to ensure continuing compliance. You have to;
- Keep accurate financial records
- File regular tax returns
- Meet any additional FTA requirements
Conclusion
The introduction of corporate tax UAE emerges as a game-changer for both resident and non-resident persons. Non-residents, whether individuals or juridical entities, have to know the corporate tax registration process of establishing a Permanent Establishment or having a nexus, and compliance requirements. The Federal Tax Authority provides all the requirements and obligations about eligibility. It is recommended to get guidance from top Tax consultant in UAE such as Corporate Tax UAE. Their proficient team helps a lot to get registered easily for non-resident persons.