In 2022, UAE announced a 9% corporate tax rate which is payable on once yearly company profits over AED 375,000. At the same time, this signifies a momentous shift in the UAE’s tax policy. As per the Federal Decree Law 47, as mandated by the Federal Tax Authority, it also necessitates businesses to guarantee that the required documents for UAE corporate tax registration submitted to the FTA are accurate. The documents must be 100% precise and accurate enough to get approved by the FTA. However, the process of registration can be pretty complicated and requires good guidance.
- Income Statements
All taxable persons in the UAE can employ accounting services in UAE to keep all-inclusive records of incomes and incidentals, which provide a comprehensive breakdown of the financial performance during a certain period.
- Trade License
The trade license is a compulsory document. It is issued by the Department of Economic Development or related free zone authorities. It allows the company to run legitimately within the UAE and frameworks the explicit business activities permissible under the license.
- Balance Sheets
Balance sheets are also mandatory and present a detailed picture of the company’s financial position, particularization of assets, liabilities, and equity at an explicit point in time.
- Power of Attorney
If the corporate tax registration process is being managed by a legal illustrative entity or representative, a power of attorney document has to be provided. This allows the illustrative to act in support of the company in tax-related matters.
- General Ledgers
Accounting is definitely partial without a comprehensive account of all financial transactions, for which it is important to have a complete ledger that simplifies the tracking of financial movements.
- Certificate of Incorporation
This certificate is proof of the business’s authorized formation and registration. It is issued by the related authority. It includes important details such as;
- The company’s name
- Registration number
- Date of incorporation
- Bank Statements
When it comes to the list of key documents, the most important one is a record of all financial transactions led through business accounts. These can aid in the settlement of financial records.
- Expense Receipts
Expenses receipts essentially comprise documents that support all expenses that are business-linked to guarantee precision in expense reporting.
- Previous Tax Returns
If there is any need in some cases, copies of any earlier tax returns filed by the company will be required. This is chiefly applicable to companies transitioning from other tax structures or authorities to the UAE corporate tax regime.
- Invoices and Receipts
Although invoices and receipts may not look like significant documents. It is imperious to keep a record of;
- Sales transactions
- Purchases
- Other financial interactions with clients or vendors
- MOA and AOA
The Memorandum of Association and Articles of Association are fundamental documents. These documents outline the;
- Business’s structure
- Purpose
- Operating procedures
They provide info on the company’s investors, share capital, and internal authority instructions.
- Tax Invoices
It is supreme to have comprehensive documentation of transactions that are subjected to corporate taxation within the complicated network of corporate tax. These invoices help to ensure compliance with valid tax rules.
- Employee Payroll Records
Taxable persons are also required to have details of employee compensation, bonuses, and tax withholdings within the list of fundamental documents.
- VAT Registration Certificate
If the business is already registered for VAT in the UAE, a copy of the VAT registration certificate is a requirement to be submitted. This helps in managing the corporate tax registration with prevailing tax records.
Conclusion
Taxpayers are obligated to keep adequate records to comply with UAE Corporate Tax Law and to file corporate tax returns accurately. The above documents together ensure that the company is officially compliant and equipped for corporate tax registration in the UAE. Each document helps a specific purpose in validating the company’s individuality, operations, and financial status to simplify a smooth registration process. If you want to get any assistance, Tax Consultant Dubai . is one of the top consultants that helps businesses handle all complexities related to corporate tax registration.
