Tax registration
Corporate tax and VAT registration: two separate requirements
Understand why registration for one tax does not establish your position under the other.
Corporate tax and VAT are separate tax regimes. A company’s registration position should be considered under each set of rules, rather than treating tax registration as a single task. Having one registration does not demonstrate that another is unnecessary, and the amount of tax ultimately payable is a different question from whether registration is required.
Review the company’s position
The legal form, establishment date, activities and any existing registrations are useful starting information. Corporate tax registration depends on the applicable rules for the person or entity concerned. Do not infer that there is no registration obligation merely because the business is new, operates in a free zone or expects little tax to be payable.
Assess VAT separately
VAT registration considers taxable supplies and imports and the applicable assessment periods, rather than company profit alone. Voluntary registration has its own conditions, and non-resident businesses can be subject to different rules. A useful review therefore needs information about the nature and location of transactions, not simply a statement that the business is profitable or has a licence.
Keep registration information consistent
Check company names, licence details, ownership information and contact details against the supporting records. If the business has an existing tax account or previous application, make this known before another submission is prepared. Registration should be followed by appropriate arrangements for ongoing obligations; it does not complete every tax responsibility the business may have.
Why the AED 375,000 figure causes confusion
The same number appears in different tax discussions, but the underlying measure is not the same. For the standard corporate tax calculation, AED 375,000 concerns a taxable-income band; it is not a general turnover exemption from company registration. For VAT, the mandatory registration test for a UAE-resident business concerns taxable supplies and imports over the relevant period.
A small UAE company should therefore not decide its registration position from a statement such as “our profit is below AED 375,000”. Identify the entity, the tax being considered and the correct measure first. Natural persons carrying on business have a separate corporate tax turnover test; FTA guidance sets that test at business turnover exceeding AED 1 million in a calendar year. Wages and qualifying personal investment and real estate investment income are excluded from that business-turnover assessment.
Registration timing and supporting documents
For UAE-resident businesses, FTA guidance sets mandatory VAT registration at more than AED 375,000 of taxable supplies and imports in the previous 12 months, or where that level is expected in the next 30 days. Voluntary registration can apply above AED 187,500 of eligible supplies, imports or taxable expenses, subject to its conditions. Non-resident cases have separate rules. This is why checking only sales since 1 January can miss the relevant test.
Before registration, organise the trade licence, incorporation details, ownership and signatory authority, together with records relevant to the tax concerned. The FTA may request further evidence. Record the application reference and distinguish submission from approval; an incomplete file may need clarification before a registration number is issued.
Our service scope
Ras Al Hekma provides corporate tax and VAT registration assistance, including support with registration information and documents. This service does not include preparing or filing tax returns. Tell us which registration you need and whether the business already holds an account or registration so that we can discuss the appropriate scope.
Keep these distinctions clear
| Question | What it concerns |
|---|---|
| Must this company register for corporate tax? | The applicable entity and registration rules, not simply the expected tax bill. |
| Has a resident business reached the VAT threshold? | Taxable supplies and imports, relevant periods and any applicable exceptions. |
| What happens after registration? | Ongoing records, filing and payment obligations where applicable. |
Common questions
Does a VAT number mean corporate tax registration is complete?
No. Confirm each tax registration separately in the business’s records and FTA account. One number or certificate should not be treated as proof that every registration requirement has been met.
What if the business has not made a profit?
Low profit or a loss does not by itself remove a company’s corporate tax registration obligation. VAT looks at its own criteria, rather than net profit. Explain whether you are enquiring for a company or a natural person, since their corporate tax position can differ.
What if someone previously created an account for the company?
Locate the existing account, registration certificates and application references before starting again. Clarify who controls the contact details and authorised access. If access is lost or details have changed, use the FTA’s appropriate account or amendment process rather than creating duplicate registrations.
Official references
- Federal Tax Authority — corporate tax
- Federal Tax Authority — VAT registration
- Federal Tax Authority — corporate tax registration service
- Federal Tax Authority — natural persons and corporate tax
- Federal Tax Authority — registration and account questions
Requirements can change. The relevant authority confirms the conditions applicable to each application.
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