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Corporate Tax Deregistration in the UAE: A Comprehensive Guide
As the UAE continues to build its corporate tax system, businesses are expected to stay compliant not only when registering but also when exiting. If your company has stopped operating, been dissolved, sold, or merged, you must formally inform the Federal Tax Authority (FTA) that your business is no longer liable for corporate tax—this is called corporate tax deregistration.
Failing to go through this step properly can lead to unexpected penalties, even if your business activities have ended. That’s why understanding how corporate tax deregistration works is important for business owners who are closing or restructuring.
What Is Corporate Tax Deregistration?
Corporate tax deregistration is the official process of cancelling a business’s corporate tax registration with the UAE’s FTA. It confirms that your company no longer has obligations under the corporate tax system, typically because:
The business has been permanently closed or liquidated
The company has been sold or merged with another entity
You no longer meet the criteria to be registered for corporate tax
Even if you’ve stopped operations, you still need to submit a deregistration request. Simply ceasing business activity is not enough.
When Should You Apply?
The FTA has strict deadlines for deregistration:
For individuals (natural persons): within 3 months from the date the business activity ends
For companies (legal persons): within 3 months from the date of dissolution, liquidation, or cessation
Late applications can result in fines, so it’s essential to act quickly once the business is no longer active.
How to Apply for Corporate Tax Deregistration
Here’s a step-by-step guide to how the process works in the UAE:
Log into EmaraTax
Use your UAE Pass or account credentials to access the FTA’s EmaraTax portal.Start Your Deregistration Request
Go to the “Corporate Tax” section on the dashboard and choose the option to apply for deregistration.Provide Business Details
Enter the date the business ceased and explain the reason for deregistration. Supporting documents may be needed based on your reason (e.g., liquidation certificates, financial statements, or transfer documents).Submit and Track
Double-check the application and submit it. The FTA might contact you for clarification or additional information before they issue final approval.Receive Confirmation
If approved, you will receive a tax clearance certificate confirming that your business has been deregistered.
Documents You May Need
Depending on your situation, the following documents are commonly required:
Final financial statements
Last corporate tax return (if applicable)
Proof of liquidation or closure
Evidence of business transfer (in case of sale or merger)
Supporting ID and license documents
What Happens If You Don’t Deregister on Time?
Delays in submitting your application can cost your business:
A penalty of AED 1,000 for the first delay
An additional AED 1,000 for every month of delay (up to AED 10,000 total)
To avoid these costs, it’s critical to apply as soon as your business qualifies for deregistration.
Why Deregistration Matters
Even if your business is no longer making revenue, staying on the corporate tax register can expose you to ongoing compliance requirements. Deregistration:
Stops future tax obligations and returns
Prevents penalties and unnecessary government follow-ups
Ensures legal and financial clarity during liquidation or sale
How Can Choose UAE Help
Corporate tax deregistration is more than just a formality—it’s a legal responsibility that protects your business from future fines. If you’re winding down operations or restructuring, it’s essential to take this step promptly and correctly.
If you’re unsure how to proceed, Choose UAE can assist you with tax compliance, final filings, and the entire deregistration process. Explore our accounting services, VAT support, or bookkeeping help to make your exit process smooth and penalty-free.
Need help with corporate tax deregistration in the UAE? Contact us today and let our experts take care of the paperwork so you can move forward confidently.
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