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Corporate Tax Deregistration in UAE

It is not easy to navigate the intricate world of corporate taxation in the UAE, particularly regarding the deregistration of corporate tax. Companies doing business in the UAE must adhere to corporate tax laws implemented to enhance the country's financial system. Yet, there are times when companies would have to deregister from corporate tax for reasons like liquidation, closure of business, or restructuring. Golden Falcon Consultants (GFC) offers professional advice and assistance to companies looking for corporate tax deregistration service in UAE, making the process smooth and compliant.

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Corporate Tax Deregistration in Dubai

Process of Corporate Tax Deregistration

Corporate tax deregistration in the UAE entails several vital steps to adhere to the Federal Tax Authority (FTA) regulations. The procedure generally encompasses the following steps:

1. Confirm Eligibility for Deregistration
- Ensure the business has no ongoing tax liabilities (e.g., unpaid taxes, pending audits).
- Verify that the company has ceased operations or no longer qualifies as a taxable person.
2. Settle All Tax Obligations
- File final tax returns covering the period up to the deregistration date.
- Pay any outstanding tax dues, penalties, or interest (e.g., late payment penalties).
3. Submit a Deregistration Application
- Log in to the FTA’s EmaraTax portal.
- Complete the deregistration form (CT-DR01) and attach required documents:
- Audited financial statements (if applicable).
- Proof of cessation (e.g., liquidation notice, board resolution).
- Tax clearance certificate (confirming no dues owed).
4. FTA Review and Approval
- The FTA will review the application within 20 working days.
- They may request additional documents or conduct a final audit.
- If approved, the FTA issues a Tax Deregistration Confirmation.
5. Post-Deregistration Requirements
- Maintain financial/tax records for 7 years from the deregistration date.
- Respond to any follow-up queries from the FTA.

When To File an Application for Corporate Tax Deregistration?

Businesses operating in the UAE should apply for corporate tax deregistration in the following situations:

01
Cessation of Business Activities
  • The business permanently stops all operations in the UAE (e.g., closure, dissolution, or liquidation).
  • Example: A retail company closes all stores and terminates its trade license.
02
No Longer Qualifying as a Taxable Person

The entity no longer meets the criteria for Corporate Tax liability, such as:

  • Falling below the AED 1 million revenue threshold (for Sole Establishments).
  • Transitioning to a tax-exempt entity (e.g., a government entity or qualifying nonprofit).
03
Merger, Acquisition, or Restructuring

The business is absorbed into another entity (e.g., merger) or ceases to exist due to restructuring.

04
Liquidation

The company enters liquidation, and all assets/liabilities are settled.

Key Deadlines

Triggering Event Deadline to Apply
Permanent cessation of business 3 months from the date of cessation
Liquidation 3 months from the liquidation completion date
Merger/Acquisition 3 months from the effective date of the merger
Falling below exemption threshold 3 months from the end of the relevant tax period
Corporate Tax Deregistration

Reasons for Corporate Tax Deregistration

There are various reasons why a business may apply for corporate tax deregistration in the UAE, including:

Business Closure: Corporate tax deregistration is required if a company is closing down because of financial difficulties or strategic reasons.
Merger or Acquisition: When one company acquires or merges with another, the initial company can be asked to deregister from corporate tax.
Corporate Restructuring: Major adjustments in the business structure can lead to tax deregistration to accommodate the new operational structure.
Relocation of Business: Corporate tax deregistration is required when the business chooses to relocate its operations outside the UAE.
Change in Tax Status: If the company becomes eligible for tax exemption owing to modifications in the business model or the industry classification, it can seek tax deregistration.

Eligibility to Deregister from the UAE Corporate Tax

To qualify for corporate tax deregistration in the UAE, business entities should satisfy the following conditions:

Settlement of Outstanding Taxes: All pending corporate tax payments, penalties, and fines should be paid before seeking deregistration.
Submission of Final Tax Returns: The company should submit the final corporate tax return up to the date of business cessation.
Business Liquidation or Closure: The company should submit evidence of business closure or liquidation from the concerned authorities.
No Current Tax Audit or Investigation: The business should not be subject to any tax audit or investigation by the FTA during deregistration.
Completion of Regulatory Requirements: All other regulatory requirements, including employee settlements, license cancellation, and debt clearances, must be completed.

Corporate Tax Deregistration

Consequences of Corporate Tax Deregistration

Once deregistered, the company will lose corporate tax benefits, such as tax incentives and deductions.

Outstanding tax liabilities should be cleared before deregistration approval.

When the FTA discovers inconsistencies or non-compliance while processing deregistration, the company can expect to be penalized or further investigated.

Deregistration can result in changes in operations, such as the revocation of trade licenses and business permits.

Failure to comply with deregistration requirements may result in fines, penalties, or legal action from the FTA.

Why Choose GFC for Corporate Tax Deregistration?

FTA Approved Tax agent : We are a certified/approved tax agent by FTA UAE since 2018.
Expertise: Our tax consultants have exhaustive information about UAE corporate tax law and FTA guidelines.
Tailored Solutions: We offer personalized deregistration plans according to the specific requirements of every company.
Efficient Process Handling: From preparing documents to their submission and follow-ups, we handle the process to facilitate on-time completion.
Compliance Assurance: We ensure that all the tax liabilities are fulfilled and the business complies with FTA rules.
Confidentiality and Integrity: Our services provide maximum privacy and integrity to safeguard your business interests.

Golden Falcon Consultants is dedicated to offering hassle-free corporate tax deregistration service in UAE, assisting companies in dealing with complicated tax laws confidently and efficiently. Contact us now to arrange a consultation and streamline your corporate tax deregistration.

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