New UAE Tax Deregistration Rules and Timelines: What You Need to Know
Under the UAE Corporate Tax Law, a person with a tax registration number must file a tax deregistration application with the Federal Tax Authority (FTA) if their business has ceased for any reason. The FTA has recently issued Decision No. 6 of 2023, which sets out a timeline for filing this application:
- Natural Person: must apply within 3 months of the date of business cessation.
- Juridical Person: must apply within 3 months of the date of business cessation, entity dissolution, liquidation, or otherwise.
This decision will be effective from 1 June 2023.
It’s important to keep in mind that the FTA will only approve the tax deregistration application if all corporate tax, administrative penalties, and tax returns have been paid and filed. However, clarity is awaited on the mechanism and timelines to do so.