UAE Corporate Tax: Registration mandatory for small businesses, even with losses
UAE’s first full-year corporate tax period has started, businesses must ramp up their auditing processes – and most important, be sure to register with the Federal Tax Authority on the compliance side. It doesn’t matter whether the business is relatively new or has been making losses. They need to register irrespective of whether their annual profit is above or below the Dh375,000 threshold.
“There still seems to be doubts among some SME owners that corporate tax registration can wait until their profits approach the Dh375,000 profit mark,” but They are wrong.”
There is ‘Small Business Relief’
Businesses are required to prove eligibility – they must submit tax returns and keep necessary records,”. “If they don’t meet the Dh375,000 profit level, eligible taxable persons (i.e., business owners) can elect for the ‘Small Business Relief’ on their tax return. “Once this selection has been made, they will be able to complete a simplified tax Return and benefit from the relief.”
Book an Appointment with Miqat Auditors & Consultants- Get a free corporate tax review for Free Zone and Mainland businesses.