With the implementation of corporate tax in the UAE, all taxable entities are required to register with the Federal Tax Authority (FTA). However, businesses that shut down, change structure, or no longer qualify for taxation must complete the corporate tax deregistration process to formally end their tax obligations.

Corporate tax deregistration involves proper planning, filing the final return, settling all liabilities, and ensuring full compliance with the FTA to avoid future penalties. It's a crucial step for companies undergoing liquidation, restructuring, or permanent closure.

At Shuraa Tax, we make corporate tax deregistration straightforward and stress-free for businesses across the UAE. With our extensive knowledge of UAE tax laws and experience handling tax exits, we ensure your business wraps up smoothly with no compliance issues or loose ends.

What is Corporate Tax Deregistration in UAE?

Corporate tax deregistration is the formal process of removing your business entity from the FTA's corporate tax registry. This procedure legally ends your tax obligations and stops any further filing requirements or penalties from being levied on your company after closure or restructuring.

Corporate tax deregistration applies to:

• Companies that are liquidated or permanently shut down
• Businesses undergoing mergers or acquisitions
• Entities that no longer meet the tax threshold requirements
• Temporary businesses whose license has not been renewed

Even when deregistering, companies must file their final tax return and clear any outstanding dues before the FTA will approve the deregistration application.

What are the Reasons for Corporate Tax Deregistration in UAE?

Several scenarios necessitate corporate tax deregistration in the UAE:

• Business Closure: The company ceases all business operations permanently.
• Company Liquidation: The business is formally dissolved through a liquidation process.
• Business Restructuring: Merging with or acquiring another business, or shifting from one legal structure to another.
• Change in Tax Status: The business undergoes structural changes or is no longer considered a "taxable person" under UAE Corporate Tax Law.
• License Expiry with No Renewal: The business license is not renewed, with no future reactivation plans.

Why is Corporate Tax Deregistration Important?

Failing to properly deregister, even after ceasing operations, can lead to significant compliance issues. Formal deregistration provides several important benefits:

• Ends Legal Obligations: Officially terminates the requirement to submit future corporate tax filings.
• Avoids Penalties: Prevents accumulation of late filing fees and other non-compliance penalties, even when no tax is due.
• Ensures a Clean Record: Maintains the company's record with the FTA for any future ventures or legal requirements.
• Facilitates Liquidation: Serves as a vital step in the formal liquidation or restructuring process of a company.

What is the Eligibility to Deregister from UAE Corporate Tax?

Businesses are eligible to apply for corporate tax deregistration if they meet the following criteria:

• The business has officially ceased operations or is in liquidation
• There are no pending tax dues or fines
• The final corporate tax return has been filed
• All supporting documents (liquidation letters, cancellation certificates, etc.) are available
• The application is submitted within 3 months of ceasing business activities

When to File an Application for Corporate Tax Deregistration in UAE?

Timing is crucial to avoid penalties. The FTA requires deregistration applications to be submitted within specific timeframes:

• For Juridical Persons (Legal Entities): Application must be filed within three months of the date the entity ceases to exist, or from the date of cessation of business, dissolution, or liquidation.
• For Natural Persons (Individual Business Owners): Application must be filed within three months of the date of cessation of business or business activity.

What is the Process of Corporate Tax Deregistration in UAE?

The deregistration process is conducted through the FTA's online platform, EmaraTax. The general process includes:

1. Access the EmaraTax Portal: Log in to your company's account on the EmaraTax platform.
2. Initiate Deregistration: Navigate to the corporate tax section and select the deregistration application.
3. Provide Information: Fill out the application with required details, including the reason for deregistration and the effective date of cessation.
4. Upload Supporting Documents: Submit all necessary documentation, including:
   • Valid Trade License and its cancellation document
   • Final audited or management financial statements
   • Liquidation certificate (if applicable)
   • Passport/Emirates ID of owner(s)
   • Proof of final return submission
5. File Final Return & Settle Liabilities: Ensure your final tax return is submitted and all outstanding taxes and penalties are paid.
6. Submit the Application: Review all details and submit the application for FTA review.
7. Receive Confirmation: The FTA will review the application and, if approved, issue a deregistration certificate confirming cancellation of your Corporate Tax registration.

How Shuraa Tax Assists with Corporate Tax Deregistration

At Shuraa Tax, our team of qualified accountants and tax advisors in Dubai provides expert assistance to ensure a seamless and compliant deregistration process. Our services include:

• Eligibility Assessment: We assess your business's eligibility for deregistration and guide you on the best course of action.
• Documentation Preparation: We help gather and prepare all necessary documentation required for the application.
• Application Management: We handle the entire application process on your behalf, from filing the final return to submitting the deregistration request on EmaraTax.
• Liaison with the FTA: We act as your representative with the Federal Tax Authority, responding to queries and ensuring smooth approval.
• Proactive Compliance: We help you stay ahead of deadlines and avoid penalties through timely reminders and expert advice.

Beyond deregistration, Shuraa Tax provides comprehensive UAE corporate tax and taxation services to support your business's financial health and compliance:

• Corporate Tax Registration
• Corporate Tax Return Filing
• VAT Registration Services
• VAT Return Filing
• VAT Deregistration
• Bookkeeping & Accounting
• Auditing Services
• Payroll Services
• ICV Certification

Ready to Deregister Your Corporate Tax?

Let Shuraa Tax guide you through the process quickly, legally, and stress-free. Avoid unnecessary penalties and gain peace of mind knowing everything is handled by experts.