Does the freezone companies are to be registered for Corporate Tax ?
Yes , all #freezones companies would be required to register for corporate tax even if the taxable income is below the threshold of AED 375 000 or Exempt.
Then what about the individual business holders like social media influencers, freelancers, sole proprietorships or civil companies?
Yes they also should register for VAT even if the taxable income is below the threshold of AED 375000. For the purpose of corporate tax all individuals would be considered as resident if she conducts business activities in the UAE.
Individuals will not be subject to corporate tax. As a result, any income from employment, real estate, investments in shares, and other personal income unrelated to a trade or business in the UAE will be exempt from corporate tax
The details about the business categories covered under CT -will be published soon.
Businesses are not required to take any action as of now for the corporate tax registration as the Federal Tas Authority will send out invitations to register to select businesses.
Then who needs to be registered for corporate tax on a priority basis? The taxable persons or business, of their first financial year commencing on or after June 1, 2023 needs to be registered first.
how to determine the “financial year “of a taxable person for corporate tax purposes . It is usually mentioned on the MOA of the particular company or tax payer or any other related legal documents which was prepared at the time of company incorporation
Nine months are available to submit the Tax return after the completion of their relevant financial year.
For example a company’s first financial year starts from Jan to Dec , then the corporate tax applicable for them is from 1st Jan 2024. He needs to submit the tax return on or before Sep 2025. and they have the time to register for CT until the due date of Sep 2025.
