Corporate Tax Deregistration

Expert Corporate Tax Deregistration by TAG: UAE's Leading Tax Consultants & FTA Approved Tax Agency. Ensure Compliant Closure, Avoid Penalties, and Manage Final Tax Obligations Smoothly.

Corporate Tax Deregistration Services

Eligibility & Timing Assessment

Final Tax Return Preparation & Filing

Outstanding Liability & Penalty Settlement

Documentation Collation & Verification

EmaraTax Deregistration Application Management

FTA Liaison & Confirmation

When a business ceases operations or undergoes significant structural changes, it must notify the Federal Tax Authority (FTA) and apply for Corporate Tax Deregistration within the legally mandated timeframe. At TAG, we ensure this process is managed with precision, compliance, and minimal disruption.

What is Corporate Tax Deregistration?

Corporate Tax Deregistration is the formal process of cancelling a business’s tax registration with the FTA, ending its obligation to file and pay Corporate Tax in the UAE. It applies when a company ceases activities, liquidates, or undergoes restructuring.

It’s essential to understand that a company remains liable for Corporate Tax until deregistration is approved, and all returns, payments, and penalties must be settled before the process is completed.

Reasons for Corporate Tax Deregistration

There are several valid scenarios that require a business to deregister from Corporate Tax, including:

Closure of the business: Whether due to liquidation, insolvency, or voluntary shutdown.
Change in legal structure: Mergers, acquisitions, or conversion into another entity type.
Transfer of ownership: Sale of the business or major changes in shareholders.
Other restructuring scenarios: Including businesses that were not previously registered but are now liquidating and must regularize their tax position.

When to Apply for Deregistration

To stay compliant, businesses must submit their deregistration request via EmaraTax within:

3 months from the date of cessation of business (for natural persons).
3 months from the date the entity ceases to exist (for legal persons).

Failure to apply within this timeframe may result in significant penalties.

Penalties for Late Corporate Tax Deregistration

AED 1,000 if the application is not submitted within 3 months.
Additional AED 1,000 monthly, up to a maximum of AED 10,000.
The FTA may initiate deregistration for non-compliant businesses and impose administrative action.

How to Apply for Corporate Tax Deregistration

Before deregistration is granted, the business must:

File all pending Corporate Tax returns, including the final return.
Pay all outstanding Corporate Tax liabilities.
Clear any administrative fines or penalties.
Provide supporting documents, such as:
- License cancellation or liquidation papers.
- Evidence of business sale, merger, or relocation.

Requirements for Deregistration

Complete the deregistration application with accurate business and financial details.

Upload required documents based on the reason for deregistration.

Submit the application and respond promptly to any FTA requests.

Upon approval, the FTA will issue a Tax Deregistration Certificate.