Corporate Tax Deregistration UAE: Process & Reasons

Corporate Tax Deregistration in UAE

What Is Corporate Tax Deregistration in UAE?

Corporate tax deregistration in the UAE lets a business stop its corporate tax responsibilities. If a company closes, changes owners, or shifts legal structure, it can apply for deregistration. The Federal Tax Authority (FTA) manages this process and uses the EmaraTax portal to handle all applications and records.

How To Start the Corporate Tax Deregistration Process

If your company wants to deregister, you must follow these simple steps:

  • Log in to EmaraTax:
    Log in with your account details or UAE Pass. If you forget your password, you can reset it.
  • Go to the Corporate Tax Section:
    After logging in, click on the Corporate Tax tile and choose the ‘Actions’ button. This starts your deregistration application.
  • Fill in Your Details:
    Enter your business cessation date, reason for stopping, and attach any supporting documents. Add buyer or transferee details if someone else is taking over.
  • Review and Submit:
    Check all your information before you submit. If you make mistakes, the FTA can ask for more details.
  • Get Confirmation:
    If the FTA approves your application, you’ll get a reference number. The FTA can also ask for a final tax return for your business. The EmaraTax portal will generate this return.

When To File for Corporate Tax Deregistration

Businesses must file for deregistration within three months of stopping activities.

  • Natural Persons:
    Must submit the deregistration form within three months after their business ends.
  • Juridical Persons (like companies):
    Must file within three months of closing, dissolving, liquidating, or another big change.

The FTA won’t complete deregistration unless you:

  • File all required CT returns, including for the last period of business.
  • Pay all tax dues.
  • Pay all penalties.

If the FTA approves your request, deregistration is usually effective from the business cessation date or another date the FTA chooses. Not following these rules can lead to extra fines or penalties.

Reasons for Corporate Tax Deregistration

Your company may need to deregister from corporate tax for several reasons:

  • Closure of Business:
    If a company stops operations because of bankruptcy, insolvency, or a decision to close.
  • Change in Legal Structure:
    If your company merges, gets acquired, or becomes a different legal entity.
  • Transfer of Ownership:
    If ownership changes, the old owner may deregister, and the new one registers.
  • Other Reasons:
    Any other valid reason allowed by the FTA.

What Happens After Corporate Tax Deregistration?

There are some effects to consider after deregistration:

  • Cost Savings:
    You don’t need to pay corporate tax if you’re not operating.
  • Simpler Compliance:
    No need to file tax returns or maintain tax records.
  • Limits on Future Activities:
    You may not be able to claim some government benefits or re-activate the business easily.
  • Professional Advice Needed:
    Tax rules can be complex. You should talk to a professional, like Mubarak Al Ketbi (MAK) Auditing, before starting deregistration.

What Can Help You: Choose Mubarak Al Ketbi (MAK) Auditing

When you need help with corporate tax deregistration, Mubarak Al Ketbi (MAK) Auditing is your reliable partner. We guide you step by step, keep your business on track, and save you from headaches or penalties. Our professionals know every rule in detail and will make the process feel like a walk in the park—after all, it’s always best to let experts take the wheel!

For more information:

  • Visit our office: Saraya Avenue Building – Office M-06, Block/A, Al Garhoud – Dubai – United Arab Emirates
  • Or contact/WhatsApp: +971 50 276 2132

FAQs on Corporate Tax Deregistration UAE: Process & Reasons

Can a business claim VAT for a customer dinner?
No, VAT on dinners for customers or potential clients is non-recoverable.
What about staff lunches during meetings?
If the lunch is part of the normal meeting, VAT is recoverable.
Are staff parties or galas VAT-recoverable?
No, parties, celebrations, or entertainment events for staff are not VAT-recoverable.
Can I recover VAT on employee gifts?
You can't recover VAT on gifts if they are entertainment in nature, like festival gifts or retirement presents.
Who helps businesses with VAT compliance in Dubai?
Mubarak Al Ketbi (MAK) Auditing offers expert help for VAT registration, recovery, and compliance in Dubai.

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