Corporate Tax Deregistration in UAE: Step-by-Step Guide [2025]

With the implementation of Corporate Tax in the UAE, businesses are now required to register with the Federal Tax Authority (FTA) if they meet the eligibility threshold. But what happens when a business shuts down, undergoes restructuring, or no longer meets the requirements? That’s where corporate tax deregistration comes in.

In this blog, we’ll walk you through everything you need to know about corporate tax deregistration in the UAE, including who needs it, how to apply, legal obligations, and what documents are required.

What is Corporate Tax Deregistration?

Corporate tax deregistration is the process of officially cancelling your corporate tax registration with the Federal Tax Authority (FTA). This step is essential when your business no longer meets the tax liability threshold or has ceased operations in the UAE.

When Should You Apply for Corporate Tax Deregistration?

You must apply for deregistration if:

• Your business has ceased all economic activity.
• You have liquidated or closed your business.
• You no longer meet the corporate tax threshold (currently AED 375,000 in annual profits).
• Your company is undergoing a merger or acquisition, and the new entity will take over tax obligations.

 

Legal Obligation to Deregister

Under UAE corporate tax law, businesses are legally required to apply for tax deregistration within a specific time limit once they are no longer liable. Failing to do so can lead to:

• Administrative penalties
• Fines
• Additional compliance checks

It is important to submit your deregistration request as soon as possible after the business is dissolved or becomes ineligible.

 

Documents Required for Corporate Tax Deregistration

To apply for corporate tax deregistration, you may need to submit the following:

• Copy of trade license
• Corporate Tax Registration Number (TRN)
• Liquidation or cancellation certificate (if applicable)
• Final financial statements
• Clearance of pending tax dues
• Proof of business closure or restructuring documentation

The FTA may request additional documents based on your business type and deregistration reason.

 

How to Apply for Corporate Tax Deregistration

You can apply through the FTA’s EmaraTax portal. Follow these steps:

1. Log in to your EmaraTax account.
2. Navigate to the “Corporate Tax” section.
3. Click “Request Deregistration”.
4. Fill in the deregistration form with accurate details.
5. Attach supporting documents.
6. Submit your application.
7. Wait for FTA review and confirmation.

Once approved, the FTA will issue a deregistration certificate.

 

Corporate Tax Deregistration Time Limit

Although the FTA has not yet announced a specific deregistration time limit, businesses are expected to submit deregistration promptly after ceasing business or becoming ineligible.

It is advised to act within 30 days of closure or change in business status to avoid potential penalties.

 

Importance of Staying Compliant

Even after a business shuts down, compliance with corporate tax deregistration procedures is essential to avoid penalties and protect stakeholders. The FTA has made it clear that proper tax exit procedures are as important as registration.

 

What Happens After Corporate Tax Deregistration?

Once your deregistration is approved by the FTA, here’s what you can expect:

1. Deregistration Certificate Issued

The FTA will issue an official Corporate Tax Deregistration Certificate, confirming that your business has been removed from the corporate tax system. This document may be required for bank account closure, government clearance, or liquidation reports.

2. Final Compliance Check

The FTA may perform a final audit or review of your tax filings and financial statements to ensure all obligations have been met before closing your file.

3. No Further Tax Filing Required

Once deregistration is confirmed, your business is no longer required to file corporate tax returns. However, you must retain your financial and tax records for at least five years as per UAE tax laws, in case of any future audit.

4. Notifications to Stakeholders

It’s good practice to inform stakeholders—such as suppliers, clients, and partners—that your business has been deregistered from corporate tax to avoid confusion or disputes.

Final Thoughts

Corporate tax deregistration in the UAE is a crucial step for businesses exiting the market or restructuring their operations. By understanding the process, gathering the right documents, and applying within the expected timeframe, you can ensure a smooth and penalty-free closure of your tax account.

Need help navigating UAE corporate tax regulations? Our compliance specialists can guide you through both registration and deregistration, ensuring your business remains fully aligned with FTA requirement’s

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