The Emara Tax platform for digital tax services has been made available from January 2023 to May 2023 by the Federal Tax Authority (FTA) of the UAE for early registration of corporate tax for certain categories of companies operating in the country.
According to the Federal Decree-Law No. 47 of 2022 on the corporate tax law, taxable persons must pay 9% corporate tax at the beginning of their first financial year that starts on or after June 1st, 2023.The phase is open to feedbacks and suggestions to ensure improvements of registration procedures and processes.
The FTA will send invitations to selected businesses via email and SMS, allowing them to register using the EmaraTax platform.
Companies and individuals that report annual profits of more than Dh375,000 are subject to a 9% tax. It is one of the lowest corporate taxes in the world. Corporate tax will be assessed on the company’s profit and not on the total turnover.
Individuals holding the freelance permit, under the self-sponsorship and earning income in excess of the threshold will be subject to corporate tax.
A qualifying free zone entity that fulfils all conditions specified in the Executive Regulations of the UAE Corporate Tax Law will be exempt. Natural resource extraction activities are also exempted; however, they’re subject to existing emirate-level taxation. Government entities’ activities (excluding commercial activities), pension funds, investment funds, and public benefit organisations are exempt from the corporate tax.
Individual taxpayers, tax agents, legal representatives, foreign missions and diplomats, customs bodies and verification agencies all benefit from the range of new developments that EmaraTax brings to life.
