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.
Under FTA regulations, a business must submit a corporate tax deregistration application within three months of ceasing operations.
Typical scenarios that necessitate deregistration include:
Failing to apply within the prescribed timeframe may result in delays and penalties for late deregistration.
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:
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.
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:
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.