Corporate Tax in the United Arab Emirates

What Is Corporate Tax Deregistration?

Corporate Tax Deregistration is the process of cancelling a Corporate Tax registration with the Federal Tax Authority after meeting the applicable legal and tax requirements.

Deregistration may become necessary when a business permanently ceases operations, is liquidated, loses its legal existence, or otherwise becomes eligible for deregistration under UAE Corporate Tax legislation.

Before applying for Corporate Tax Deregistration, businesses should review their tax position and ensure that all filing and compliance obligations have been addressed.

When Is Corporate Tax Deregistration Required?

Corporate Tax Deregistration may be required in several situations depending on the circumstances of the business and applicable legislation.

• Permanent closure of a business.
• Company liquidation.
• Cancellation of a trade license.
• Termination of the legal existence of an entity.
• Certain mergers or restructuring arrangements.
• Other situations requiring deregistration under applicable legislation.

Does Trade License Cancellation Automatically Cancel Corporate Tax Registration?

No. Cancelling a trade license does not automatically cancel Corporate Tax registration.

Businesses must separately complete the Corporate Tax Deregistration process with the Federal Tax Authority and satisfy all applicable requirements before deregistration can be approved.

Failure to complete the deregistration process may result in continuing tax obligations and compliance risks.

Must Corporate Tax Returns Be Submitted Before Deregistration?

Corporate Tax Returns and other outstanding tax obligations may need to be completed before a deregistration application can be approved.

Each case should be reviewed individually to determine the filing and compliance requirements applicable before deregistration.

Documents Required for Corporate Tax Deregistration

The required documents depend on the nature of the business and the reason for deregistration, but commonly include:

• Trade License or license cancellation certificate.
• Liquidation documents where applicable.
• Final financial statements.
• Required Corporate Tax Returns.
• Documents supporting business closure.
• Additional documents requested by the Federal Tax Authority.

Common Deregistration Mistakes

• Cancelling the trade license without cancelling the Corporate Tax registration.
• Failure to submit required Corporate Tax Returns.
• Failure to maintain supporting records.
• Submitting incomplete information.
• Unresolved tax obligations.
• Ignoring Federal Tax Authority notices.

Penalties and Risks of Delayed Deregistration

Failure to complete the deregistration process or comply with Corporate Tax requirements may result in penalties, compliance risks, and additional obligations under applicable legislation.

Businesses should review their tax position and complete all required procedures in a timely manner.

Corporate Tax Deregistration for Free Zone Companies

Corporate Tax Deregistration requirements may also apply to certain Free Zone companies upon cessation of activities, liquidation, or other qualifying circumstances.

Businesses should review both Free Zone and Corporate Tax requirements before submitting a deregistration application.

After Corporate Tax Deregistration

After Corporate Tax Deregistration, businesses should continue maintaining accounting records and supporting documentation relating to previous tax periods in accordance with UAE record retention requirements.

Businesses should also remain prepared to respond to any future requests or enquiries from the Federal Tax Authority relating to previous tax periods.

• Maintain accounting records.
• Maintain supporting documentation.
• Respond to future Federal Tax Authority requests.
• Comply with record retention requirements.

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