Must New Businesses Register for Corporate Income Tax?5 min read
- 14.06.2024
- Posted by: Uwe Hohmann
- Categories: Company Setup, Dubai, Middle East, Tax
New businesses in Dubai must register for Corporate Income Tax, regardless of whether they operate on the mainland, in free zones, or offshore. UAE tax authorities mandate this requirement with no exceptions. Businesses have three months from their date of incorporation to file for tax registration to avoid penalties.
While obtaining a business license is necessary for Corporate Income Tax registration, the two processes are separate and cannot be combined.
This means that while new businesses in Dubai need a business license to register for Corporate Income Tax, the process of getting a business license is distinct from the process of registering for Corporate Income Tax. You must complete each process separately; you can’t register for corporate income tax at the same time as obtaining your business license.
Registering for corporate income tax grants businesses a Tax Registration Number (TRN), which the FTA issues in up to 20 working days.
The Federal Tax Authority (FTA) continues to issue updates on procedures for corporate income tax procedures, and our team is always up to date. If you have not registered yet, make sure to do so.
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