Corporate Tax De-Registration

Corporate Tax (CT) De-Registration is the formal process of canceling a business’s Corporate Tax registration with the Federal Tax Authority (FTA) when it no longer meets the requirements for tax registration. Proper de-registration is essential to ensure compliance with UAE tax laws and to avoid unnecessary tax liabilities and penalties.

When is CT De-Registration Required?

A business must apply for Corporate Tax de-registration under the following circumstances:

✅ Mandatory De-Registration:

• The business ceases operations or is liquidated/dissolved.

• The business no longer meets the corporate tax liability threshold as per UAE tax laws.

• A change in business structure results in the entity no longer being subject to UAE Corporate Tax.

✅ Voluntary De-Registration:

• If a business no longer falls within the scope of Corporate Tax applicability, it may request voluntary de-registration.

CT De-Registration Process

1️⃣ Eligibility Assessment: We assess whether your business qualifies for mandatory or voluntary CT de-registration.
2️⃣ Submission of De-Registration Application: We prepare and submit the CT de-registration request via the FTA portal.
3️⃣ Final Corporate Tax Return Filing: The business must file a final tax return, settle outstanding tax dues, and ensure compliance with tax obligations.
4️⃣ Compliance with FTA Requirements: We assist in addressing FTA queries, providing necessary documentation, and fulfilling regulatory obligations.
5️⃣ CT De-Registration Approval: Once approved, the business receives confirmation of de-registration, and its tax registration is canceled.

Consequences of Not De-Registering

Failure to apply for de-registration within the prescribed time frame may result in:

❌ Penalties and fines imposed by the FTA.
❌ Ongoing tax return filing obligations, even if the business is no longer operational.
❌ Potential legal and financial consequences due to non-compliance.