Corporate Tax Deregistration in UAE

Process of Corporate Tax Deregistration

The process of corporate tax deregistration in the UAE involves the following steps:

1. Log in to EmaraTax: Taxpayers can log in to the EmaraTax portal using their login credentials or UAE Pass. If they have forgotten their password, they can use the ‘Forgot password’ feature to reset their password.
2. Access the Corporate Tax tile: Once logged in, taxpayers should click on the ‘Actions’ button on the Corporate Tax tile within the Taxable Person Dashboard to initiate the Corporate Tax Deregistration application.
3. Complete the De-Registration application: The application has been divided into two sections; each section being represented in the progress bar. Taxpayers are required to enter details such as the date of cessation of business or activity, the reason for cessation of business, and any supporting documentation. They are also required to add buyer/transferee information if applicable.
4. Review and submit the application: Taxpayers should carefully review all the information entered before submitting the application. Once submitted, the FTA will review the application and may request additional information if necessary
5. Receive confirmation of de-registration: If the application is approved, the taxpayer will receive a reference number for their submitted application. Once the FTA confirms acceptance of the De-Registration application form, the taxpayer will be notified of the pre-approval. The taxpayer may also be required to submit a final tax return, which will be generated by the EmaraTax portal.

When To File An Application For Corporate Tax Deregistration?

An entity that is given a TRN will be required to submit the deregistration application to the FTA within the timeline specified by the authority. The timeline specified by the authority lays down the following criteria:

• A natural person shall be required to file the application for the CT deregistration within the timeframe of 3 months from the date of the cessation of the business or business activity.
• A juridical person will be required to file the CT deregistration application with the authority within 3 months from the date when the entity ceases to exist, or in the case of dissolution, liquidation, or other reasons.

A taxable entity will not be deregistered unless it:

• File all the required CT returns, inclusive of the return for the period till the cessation of the business.
• Makes the payment of all the tax dues
• Makes the payment for all the administrative penalties liable to be paid under the law.

If the FTA approves the application, the entity will be deregistered from the CT regime. After the approval of the application, it might be effective from the date of cessation of the business or any other date stated by the FTA.

If the entity fails to comply with the said instructions for the purpose of deregistration, then it might attract further penalties or fines.

Otherwise, the authority may, at its discretion, deregister the entity from the effective date as stated below:

• The last day of the tax period when the authority realises that the entity has not met the deregistration conditions.
• Or, from the date from which the taxable entity ceases to exist

Reasons for Corporate Tax Deregistration

• Closure of the business: When a company ceases its operations, it may be eligible for deregistration. This can occur due to bankruptcy, insolvency, or a strategic decision to wind up the business.

• Change in legal structure: If a company undergoes a change in its legal structure, such as a merger, acquisition, or conversion to a different type of entity, it may be necessary to deregister for corporate tax purposes.

• Transfer of ownership: In some cases, a company may be sold or its ownership may be transferred to another party. In these situations, the new owner may be responsible for registering the business for tax purposes, while the previous owner may be eligible for deregistration.

• Other means: Apart from the above stated reasons a firm can de-register itself from the corporate tax regime for other reasons as specified by the authority 

Consequences of Corporate Tax Deregistration

• Cost savings: Deregistering for corporate tax can result in significant cost savings for businesses that are no longer operating or have transferred ownership.
• Simplified compliance: Once deregistered, businesses are no longer required to file corporate tax returns, which can simplify their compliance obligations.
• Potential limitations on future activities: Deregistered businesses may face limitations on their ability to engage in certain activities or access government benefits or incentives.
• Consultation with a tax professional: Due to the complexity of tax laws and regulations, it is recommended that businesses consult with a tax professional or advisor to ensure they are following the correct procedures and are aware of any potential implications of deregistration.

Why Choose HayyaTax for Corporate Tax Deregistration?

Navigating the intricacies of corporate tax deregistration can be a daunting task, but with HayyaTax’s expert guidance, you can rest assured that the process will be handled seamlessly and efficiently. Our team of seasoned professionals possesses a deep understanding of corporate tax regulations and the deregistration process, ensuring that your company’s De-registration is completed accurately and in compliance with all applicable laws.

By entrusting HayyaTax with your corporate tax deregistration needs, you gain access to a team of dedicated professionals committed to providing you with exceptional service and unwavering support. Let us navigate the complexities of corporate tax deregistration while you focus on the future of your business.

Contact HayyaTax today to schedule a consultation and discover how we can streamline your corporate tax deregistration process.