Corporate Tax De-registration
Seamlessly Close Your Corporate Tax Obligations with FTA-Approved Experts
With the implementation of the UAE Corporate Tax Law (Federal Decree-Law No. 47 of 2022), businesses must not only register but also ensure they deregister correctly when the time comes. Corporate Tax Deregistration is the legal process of removing your business from the Federal Tax Authority (FTA) registry to stop further filing obligations and avoid heavy administrative penalties.
At Bizedge, our registered tax agents simplify the deregistration process, ensuring every liability is settled and every compliance box is checked.
What is Corporate Tax Deregistration?
Corporate Tax Deregistration is the formal application to the FTA to cancel a Tax Registration Number (TRN) for Corporate Tax purposes. This typically occurs when a taxable person ceases to exist or no longer carries out a business activity that qualifies for taxation.
When Should You Apply?
According to the law, a taxable person must apply for deregistration in the following scenarios:
• Cessation of Business:
If the entity stops its business activities or loses its legal personality (e.g., through liquidation or dissolution).
• Mergers and Acquisitions:
When a company is absorbed into another entity and ceases to exist as a separate legal person.
• Change in Legal Form:
If the business structure changes in a way that it is no longer a taxable person under the law.
Key Deadlines and Penalties
Timing is critical in the deregistration process. The FTA has established specific timelines under FTA Decision No. 6 of 2023.
• Submission Window:
Generally, the application must be submitted within three months of the date of cessation or the date the entity ceased to be a taxable person.
• Late Filing Penalties:
Failure to submit the deregistration application within the stipulated timeframe can lead to administrative penalties of AED 10,000, as well as other recurring fines for non-compliance.
The Deregistration Process via EmaraTax
The entire process is managed online through the FTA’s EmaraTax portal. Our team handles the end-to-end journey:
1. Eligibility Review:
We analyze your business status to confirm if you meet the requirements for deregistration.
2. Document Preparation:
We gather necessary documents, including liquidation reports, board resolutions, and final financial statements.
3. Application Submission:
We submit the request through your EmaraTax account, ensuring all fields are accurately completed.
4. Settling Liabilities:
We assist in filing the Final Corporate Tax Return and settling any outstanding tax or penalties.
5. FTA Approval:
We track the application and respond to any FTA queries until the final deregistration certificate is issued.
Required Documents and Information
To ensure a successful application, you will need:
- Evidence of the date of cessation (Liquidation certificate or cancellation of Trade License).
- Copies of board resolutions regarding the closure or merger.
- Detailed financial records and the Final Tax Return.
- Confirmation of the settlement of all outstanding tax liabilities.
Why Choose Bizedge?
Navigating the complexities of UAE Corporate Tax requires specialized knowledge. Partnering with us provides:
• Registered Tax Agents:
We are FTA-approved agents with deep expertise in the UAE tax landscape.
• Penalty Prevention:
We ensure your application is filed within the 90-day window to avoid the AED 10,000 late fee.
• Hassle-Free Exit:
From final returns to clearing liabilities, we manage the technical details so you don’t have to.
Frequently Asked Questions (FAQs)
• Q: How long does the FTA take to approve deregistration?
Once the application is submitted correctly, the FTA typically reviews and processes it within 20 business days, though this may vary depending on the complexity of the case.
• Q: What is the effective date of deregistration?
The FTA will determine the effective date, which is usually the date the business ceased to exist or the date of cessation of business activity.
• Q: Do I need to file a final tax return?
Yes. You must file a final Corporate Tax return and pay all due taxes before the FTA will finalize your deregistration.