Corporate tax in UAE - Who has to Register for Corporate Tax in UAE

Tax registration

Corporate tax registration is mandatory to ensure that all businesses subject to corporate tax are registered with the relevant tax authorities and are paying their taxes in a timely and accurate manner. It is a legal requirement for businesses to register for corporate tax, and failure to do so can result in penalties, fines, and legal action.

Registration for corporate tax allows the tax authorities to keep track of the businesses operating in their jurisdiction and to ensure that they are complying with tax laws and regulations. It also helps to prevent tax evasion and avoidance by businesses, which can have a negative impact on the economy as a whole.

In summary, tax registration in corporate tax is mandatory to ensure compliance with tax laws and regulations, to collect revenue for the government, and to maintain a fair and level playing field for all businesses operating in a jurisdiction.

Who has to Register for Corporate Tax?

1. Any Taxable Person shall register for Corporate Tax with the Authority in the form and manner and within the timeline prescribed by the Authority and obtain a Tax Registration Number, except in circumstances prescribed by the Minister.

2. The following person may also need to register for corporate Tax and obtain Tax Registration Number


a) For the purposes of an exemption from Corporate Tax or

b) For the purpose of filing declaration by partners in an unincorporated partnership under clause 6 of Article 53 of the Decree Law
Clause 6 of Article 53 refers to the authority's power to request the authorized partner in an unincorporated partnership to file a declaration on behalf of all the partners in the partnership. An unincorporated partnership is a business structure where two or more individuals carry out a business together with the intent of making a profit.

In the context of this article, if an unincorporated partnership has not been approved to be treated as a taxable person, the authority may request the authorized partner to file a declaration on behalf of all the partners in the partnership. This means that the authorized partner will be responsible for filing a declaration for all the partners in the partnership and reporting the partnership's income, expenses, and tax liabilities.

The declaration filed by the authorized partner will be binding on all the partners in the unincorporated partnership, and they will be responsible for paying their share of the tax liability based on the partnership's profits. The authority may issue a notice or decision requesting the authorized partner to file the declaration on behalf of all the partners in the partnership. Hence, each partner in an unincorporated partnership may need to register for corporate Tax.

c) The Authority may require the following Persons to register for corporate tax.

• A Qualifying Public Benefit Entity

• A Qualifying Investment Fund

• A public pension or social security fund, or a private pension or social security fund that is subject to regulatory oversight of the competent authority in the State and that meets any other conditions that may be prescribed by the Minister,

• A juridical person incorporated in the State that is wholly owned and controlled by an Exempt Person such as A Government Entity, A Government Controlled Entity, A Qualifying Investment Fund, A public pension or social security fund, or a private pension or social security fund that is subject to regulatory oversight of the competent authority in the State and that meets any other conditions that may be prescribed by the Minister and conducts any of the following:

1. Undertakes part or whole of the activity of the Exempt Person.
2. Is engaged exclusively in holding assets or investing funds for the benefit of the Exempt Person.
3. Only carries out activities that are ancillary to those carried out by the Exempt Person.

• Unincorporated Partnership

3. The Authority shall, at its discretion and based on information available to the Authority, have the ability to register a Person for Corporate Tax effective from the date the Person became a Taxable Person.


Disclaimer: The information provided in this article is for general educational purposes and is not intended to serve as professional advice, whether financial, legal, tax-related, or any other field. Laws and regulations can change, and individual circumstances can vary widely. Relying solely on the information in this article for making important decisions is not recommended, and we disclaim any liability for actions taken without seeking appropriate professional consultation.