Staying compliant
Corporate tax registration and filing
FTA registration, Qualifying Free Zone Person analysis and annual returns
In short
Every DIFC entity registers for UAE corporate tax and files annually, whether or not tax is payable. We handle registration, assess whether the entity qualifies for the zero per cent Qualifying Free Zone Person rate, monitor the de minimis position and prepare the return.
What you get
- Federal Tax Authority registration
- Qualifying Free Zone Person assessment with the reasoning documented
- Qualifying and non-qualifying revenue analysis against the de minimis limit
- Transfer pricing review for related party transactions
- Annual corporate tax return preparation and filing
Timeline: Registration within 2 to 4 weeks. Returns filed within 9 months of year end
The de minimis test needs monitoring, not an annual check
Non-qualifying revenue has to stay below the lower of 5 per cent of total revenue or AED 5 million. Discovering in month eleven that a single advisory invoice pushed you over is an expensive way to learn the rule, because the consequence is losing Qualifying Free Zone Person status for that period and the four that follow.
We track it through the year against a running total rather than checking at the end.
Questions
Does a dormant DIFC company need to register for corporate tax?
Yes. Registration and annual filing apply regardless of whether there is taxable income, and late registration attracts a penalty in its own right.
How do I know if my DIFC company qualifies for 0 per cent?
It depends on whether your income falls within the qualifying categories, whether you have adequate substance in the Free Zone, whether non-qualifying revenue stays within the de minimis limit and whether you have audited accounts. We document the analysis so it stands up if the FTA asks.
Not sure which DIFC licence you need?
Answer eight questions and we will tell you the licence route, the likely cost and the realistic timeline. It takes about two minutes and there is no obligation.