Status of Regulation
Registration
The CT registration will be independent of the VAT registrations and all businesses across all the emirates would be required to register even if the taxable income is below the threshold of Dh375,000 or exempt.
Over the next few months, the Federal Tax Authority (FTA) will send out an ‘invitation to register’ to select businesses. There may not be any penalty relating to registration once the businesses register before the due date for tax return submission which is nine months from the end of the relevant financial year. Unlike VAT, there is the scope of deregistration from CT.
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Individuals
Free Zones
Qualifying Group
Anti-abuse Rules
Small Business Relief
International Taxation
Documentation and Accounting
Taxable income will be computed from the books of accounts and the businesses do not need to prepare a separate set of books for tax purposes. Global accounting standards, such as IFRS, are acceptable, and for small businesses, simplified accounting procedures may be allowed.
All businesses need to retain and maintain accounting records for a minimum period of seven years even when a business is not taxable, claimed exemption, or did not pay tax in a particular year to facilitate future tax assessments.
