Businesses in the UAE usually find it difficult to maneuver through the intricacies of corporate taxation, particularly deregistering of corporate tax. Corporations working in the UAE are obliged to adhere to the rules of the corporate tax aimed at enhancing the financial system of the country. Nonetheless, when a company is forced to close, liquidate, or restructure the business, then, it might be necessary to choose corporate tax deregistration service in UAE.
Golden Falcon Consultants offers professional principles/end-to-end solutions to businesses that require corporate tax deregistration service in UAE as we make sure that the procedure is fully-compliant, efficient, and free of hassles. All the documentation is handled by our team of professionals, all communication with the Federal Tax Authority (FTA) is done, and the deregistration of your company will occur as swiftly and satisfactorily.
There are a number of critical procedures that should be followed in order to comply with the requirements of the Federal Tax Authority (FTA) when deregistering a corporation in the UAE. The process usually involves the following aspects:
1. Assure Eligibility of Deregistration- Make sure the business is not having unpaid taxes (e.g. unpaid taxes, pending tax audit).- Check whether the company has gone out of business, or not a taxable person.2. Settle All Tax Obligations-Filing final tax returns regarding the period till the date of deregistration.- Pay any outstanding tax payables, penalty or interest (e.g. penalty charges).3. File a Deregistration Application.- Log in to the EmaraTax portal of FTA.- Fill in the deregistration form (CT-DR01) and support documentation:- Audited financial statements (if applicable).- Evidence of termination (e.g. liquidation notice, board resolution).- Tax clearance certificate (no dues payable).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.- On approval, the FTA will provide a Tax Deregistration Confirmation.5. Post-Deregistration Requirements- Keep financial/tax documents 7 years after the date of deregistration.- Respond to any follow-up questions from the FTA.
In the UAE, corporations should seek to be deregistered with corporate tax in the following cases:
The entity does not fit the requirements of Corporate Tax liability that include:
The business is absorbed into another entity (e.g., merger) or ceases to exist due to restructuring.
The company enters liquidation, and all assets/liabilities are settled.
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.
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.
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.
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.