Corporate Tax Deregistration Service UAE
Corporate Tax Deregistration
Welcome to My Taxman, your trusted partner for comprehensive services around corporate tax deregistration under the UAE Corporate Tax Law. If your business is winding down, restructuring, or no longer meets taxable thresholds, you need a reliable specialist to guide you through the process of deregistering for corporate tax. In this service page we’ll explore what deregistration means, why it’s important, who is eligible, the step-by-step process, our support services, and frequently asked questions to help you make an informed decision.
What is Corporate Tax Deregistration?
Under the UAE Corporate Tax Law, businesses that had registered for corporate tax may be required to formally exit the tax regime if they cease operations, are liquidated, merge, or otherwise stop being a “taxable person”. Deregistration means submitting an application to the Federal Tax Authority (FTA) under the online portal, filing the final tax return, settling any outstanding liabilities, and obtaining confirmation that the registration has been cancelled.
In essence:
- You stop being registered as a taxable person for corporate tax.
- You cease future corporate tax filing obligations (assuming no further tax-liable activities).
- You avoid potential ongoing penalty risks from being registered while inactive.
Why is corporate Tax Deregistration Important?
Choosing to deregister when you no longer qualify or operate ensures your business remains compliant and avoids unnecessary costs. The key reasons include:
Ending legal obligations: Once deregistered, you are no longer required to submit further corporate tax returns for that entity.
Avoiding penalties: If you’re still registered while inactive (or below the threshold), you could face late-filing penalties or compliance costs.
Maintaining clean record: A deregistered status under the UAE Corporate Tax Law ensures your entity’s tax record remains clean, which is beneficial for liquidation, restructuring, or future business endeavours.
Supporting liquidation or restructuring: If your business is being merged, acquired, or dissolved, deregistration is a key step to close out the tax side.
When Should you Apply for Deregistration for Corporate Tax?
Timing is critical. Under the UAE Corporate Tax Law and FTA guidelines:
- For a legal entity (juridical person): you must file the deregistration application within three months of the date the entity ceases business, dissolves, or liquidates.
- For a natural person (sole proprietor or individual business owner): the application must also be filed within three months of cessation of the business or business activity.
If you delay beyond the window, you may remain registered and face ongoing filing obligations or penalties, even when the business is inactive.
How does the deregistration process work?
Under the UAE Corporate Tax Law and the FTA’s procedures, the deregistration process follows a structured path. Here are the typical steps:
Access the Emirates Tax (EmaraTax) portal : Login to the FTA’s online services portal (often via the EmaraTax platform) using your business credentials.
Initiate the deregistration application : Navigate to the corporate tax section and choose “deregistration” or “cancellation” of registration. Provide the date when business ceased or entity was dissolved.
Provide required information
You will need to enter:
- Reason for deregistration (e.g., liquidation, merger, business ceased).
- Effective date of cessation.
- Confirmation of final tax return filed and no further obligations.
Upload supporting documents
Typical documents include:
- Trade licence cancellation or business registration certificate cancellation.
- Liquidation certificate (if applicable).
- Final audited or management financial statements covering the period until cessation.
- Passport/Emirates ID of owner(s), as required.
- Proof that final tax return has been submitted.
File final corporate tax return & settle liabilities
Before approval:
- File the final tax return covering the period up until the business ceased.
- Pay any remaining corporate tax liability, administrative penalties, or interest.
Review and submit the application : Once all information and documents are ready, review the application and submit it on the portal.
Receive confirmation from the FTA : On approval, the FTA issues a deregistration certificate or confirmation that you are no longer registered for corporate tax, and the entity is removed from the FTA registry.
Key Considerations & Risks
When you’re considering deregistration under the UAE Corporate Tax Law, keep these in mind:
Outstanding liabilities: You cannot deregister if you have unpaid tax, penalties, or unfiled returns. Ensure everything is settled.
Audit or investigation risk: Even after cessation, if there were latent tax exposures, the FTA may initiate inquiries. Retaining records is important.
Liquidation vs dormancy: If the business is dormant but still intends to operate or earn income, deregistration may not be appropriate.
Mis-timing the application: Applying too early (before final return filed) or too late (beyond the approved window) could create additional obligations or delay.
Free-zone entities and special cases: Some free-zone businesses may have specific tax statuses or exemptions; you need tailored advice.
Record retention: Even after deregistration, retain your financial and tax records for the period the law requires (often five years or more) in case of future audits.
Why choose our service for corporate tax deregistration in UAE?
At My Taxman, we specialise in guiding businesses through the complexities of the UAE corporate tax regime and the deregistration process. Here is how we assist:
Eligibility assessment : We review your business status under the UAE Corporate Tax Law and confirm whether you meet criteria for deregistration. We help you avoid the mistake of applying prematurely or incorrectly.
Documentation preparation : Collecting and preparing the right documents is crucial. We assist in compiling trade licence cancellations, liquidation certificates, financials, identity proofs, and final tax filings, ensuring nothing is overlooked.
Application management : We manage the entire process: from login to the portal, filling the application, uploading documents, liaising with the FTA, tracking progress, and obtaining the deregistration certificate.
Expert tax & compliance advice : Our team stays abreast of the UAE Corporate Tax Law and FTA requirements. We provide insight into potential pitfalls, ensure deadlines are met, and give you peace of mind that your tax exit is clean and legally compliant.
Post-deregistration support : After deregistration, we can advise on any residual obligations, documentation archiving, potential audits, and help ensure your business closure or restructuring proceeds smoothly without unexpected tax liabilities.
Conclusion
If your company in the UAE has ceased operations, is being liquidated, has merged, or no longer meets the criteria under the UAE Corporate Tax Law, pursuing corporate tax deregistration is not merely a formality—it’s a vital step to safeguard your business from ongoing compliance obligations, penalties, and unwanted tax exposure. At My Taxman, we bring specialist experience in handling deregistration, ensuring your business exits the regime cleanly, efficiently, and with full compliance.
Don’t leave your tax exit to chance. Contact us today at at +971-543223140 to schedule your free consultation and let our tax professionals guide you through the deregistration process with confidence
Frequently Asked Questions
Q1: What is corporate tax deregistration in the UAE?
It is the official process of canceling your business’s corporate tax registration with the FTA under the UAE Corporate Tax Law when the business ceases to be a taxable person.
Q2:When must I apply for deregistration?
You should apply within three months of the date your business ceases operations, dissolves, or no longer meets the taxable criteria.
Q3: Can a free-zone company deregister from corporate tax?
Yes — if the free-zone entity is registered for corporate tax and then ceases operations or changes its legal status, it can apply for deregistration.
Q4: What happens if I still have tax liabilities?
You cannot successfully deregister until all outstanding tax, administrative penalties, and required returns have been submitted and settled.
Q5:Does deregistration mean I never have to keep records?
No — even after deregistration, businesses must retain relevant financial and tax records for the period required under UAE law, in case of future audits or retrospective reviews.
Q6: Does deregistration apply immediately after submission?
Not always. The FTA must review and approve your application. Only once you receive the official confirmation certificate are you officially deregistered.
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My Taxman will help you navigate every aspect of Value added tax compliance with expert guidance. We offer end-to-end solutions from Value added tax registration UAE to return filing and advisory to simplify your tax journey.
