Corporate Tax Deregistration
Corporate tax deregistration is the official procedure through which a company’s corporate tax registration is formally removed from the records of the Federal Tax Authority (FTA). The corporate law requires the submission of a formal deregistration application within a specified timeframe. Until the deregistration is completed, the FTA considers the business active and expects the filing of tax returns, even if the company is no longer generating revenue. Failure to comply with this requirement results in penalties for non-filing.
When Should You Apply for Corporate Tax Deregistration in the UAE?
Under FTA regulations, a business must submit a corporate tax deregistration application within three months of ceasing operations.
Typical scenarios that necessitate deregistration include:
- Liquidation or closure – When a business has been formally closed or liquidated.
- Mergers or acquisitions – When a company is merged into another entity and ceases to exist as a separate legal entity.
- Cessation of taxable activities – If the business no longer generates income subject to corporate tax.
- Business reorganization – When a company undergoes restructuring that changes its legal status or structure.
Failing to apply within the prescribed timeframe may result in delays and penalties for late deregistration.
Consequences of Missing the Deadline
The FTA imposes penalties for delayed deregistration. Additionally, the FTA will not process a deregistration request until all outstanding tax filings and fees have been settled. It is important to note that deregistration does not absolve a company of its existing tax liabilities; all dues must be cleared before the process can be completed.
What is the process of deregistration of Corporate Tax?
The process includes:
- Submit online via the FTA portal – You are required to log in and submit a formal application for deregistration.
- Supporting documents – Attach your cancellation of trade license, liquidation reports, or business closure documents.
- File outstanding corporation tax returns – All returns up to the point of closure are to be filed before the processing of an application for deregistration.
- Pay any outstanding liabilities – Outstanding taxes are to be paid in full before FTA confirmation of deregistration.
- Wait for FTA approval – Once the application has been processed and all requirements have been met, the FTA issues confirmation of deregistration.
What Documents Are Needed?
The documents required include, and are not limited to, the following:
Trade license cancellation certificate.
Final audited accounts.
Liquidation report (if any).
Tax returns and tax paid.
FTA application form for deregistration.
How Professional Services Assist
Engaging professional services for Corporate Tax Deregistration in the UAE can significantly save time, reduce risks, and ensure a smooth process.
Professional assistance typically includes:
- Verifying and reviewing your company’s closure or liquidation documents.
- Preparing and submitting final corporate tax returns.
- Settling any outstanding tax liabilities.
- Filing the deregistration application along with all required supporting documentation.
- Coordinating and following up with the FTA until formal approval is granted.
Seek the Expert Services of Corporate Tax Consultants in the UAE
Corporate tax deregistration is a legal requirement. Neglecting, delaying, or incorrectly completing the process can result in ongoing tax liabilities and substantial penalties. Properly executing corporate tax deregistration in the UAE ensures that your tax account is closed in a compliant and orderly manner, preventing unnecessary complications in the future.
Whether your business is closing, restructuring, or merging, seeking professional assistance for deregistration helps guarantee full compliance with FTA regulations and protects your company from fines. If your business no longer requires tax registration, it is crucial to act promptly to avoid penalties. Contact us today for expert Corporate Tax Deregistration services in the UAE, and we shall be glad to assist you.
