United Arab Emirates - Tax Updates January 2023

Federal Tax Authority (FTA) opens registration for Corporate Tax (CT)

On 22 January 2023, FTA announced that it launched registration for CT through EmaraTax platform. The FTA requires all taxable persons (both legal and natural) to register for CT and obtain a Tax Registration Number. At present CT registration is open for the UAE Public Joint Stock Company and UAE Private Company (incl. an Establishment).

A taxable person shall get time upto the date of filing of first Tax return to register itself.

FTA has also released a User Manual containing guidelines and instructions to navigate through the EmaraTax portal.

Login to EmaraTax using UAE PASS

Fededral Tax authority has released step by step guidance to login to the EmaraTax Portal using the UAE PASS account, in January 2023.

The UAE Pass app is the first national digital identity and signature solution that enables users to identify themselves to government service providers in all emirates through a smartphone-based authentication. It also enables users to sign documents digitally with a high level of security.

Attestation required for Import services more than AED 10, 000

The Ministry of Foreign Affairs and International Cooperation has announced that Beginning February 1, 2023 all import invoices worth AED 10, 000 or more must be attested by the Ministry.

The attestation cost will be Dh 150per commercial invoice and customer will have a grace period of 14 days after the declaration of goods to comply with the attestation. A penalty of DH 500 will be imposed on businesses that fail to comply.

Ministry of Industry and Advanced Technology (MOIAT) reduced the service fees to align with ‘’Make in the Emirates'' initiative

The UAE government is reducing the cost of doing business as part of the 'Make in the Emirates' initiative to attract investors and support entrepreneurship and SMEs in the industrial sector.

A new Commercial Agencies Law introduced in the UAE

The UAE has issued the new and much anticipated Federal Law No. 3 of 2022 regulating Commercial Agencies (“New Law“), repealing and replacing the longstanding Federal Law No. 18 of 1981, which has been amended many times including most recently in May 2020.

The New Law introduces various changes and grants for the first time, the right for international companies that are not owned by UAE nationals to act as agents for products they own, provided that such agency is new, has never been registered and does not have a commercial agent registered for it in the UAE.

The New Law also opens the door for the early termination or non-renewal of commercial agency agreements subject to the conditions provided for in the New Law being met.

Corporate Tax