Does a company with no revenue have to register for Corporate Tax?

Article 51 – Tax Registration 1. Any Taxable Person shall register for Corporate Tax with the Authority in the form and manner and within the timeline prescribed by the Authority and obtain a Tax Registration Number, except in circumstances prescribed by the Minister. 2. For the purposes of an exemption from Corporate Tax under this Decree-Law or for purposes of Clause 6 of Article 53 of this Decree-Law, the Authority may Federal Decree-Law No. 47 of 2022 and its amendments – Unofficial translation (as published by the Ministry of Finance) 54 require the relevant Person under paragraphs (e), (f), (g), (h) and (i) of Clause 1 of Article 4 of this Decree-Law, or the Unincorporated Partnership, as applicable, to register for Corporate Tax and obtain a Tax Registration Number. 3. The Authority shall, at its discretion and based on information available to the Authority, have the ability to register a Person for Corporate Tax effective from the date the Person became a Taxable Person.

As the election must be made in the Corporate Tax Return, the Taxable Person electing for small business relief must register for Corporate Tax before they can make the election. Example 16: Small business relief Company L is incorporated in Sharjah and earns Revenues of AED 2,500,000 in the Tax Period 1 January 2024 to 31 December 2024, and would like to claim small business relief. Even though Company L’s Revenue for a Tax Period remains under AED 3,000,000, meeting the conditions to be eligible for small business relief does not affect the Corporate Tax compliance obligations that Company L has as a Resident Person. Therefore, Company L will be required to register for Corporate Tax. Corporate Tax Guide I Registration of Resident Juridical Persons I CTGRJP1 28

6. Compliance Requirements 6.1. Record keeping A Person engaged in an Extractive Business/Non-Extractive Natural Resource Business that meets the conditions in Section 4.2 above for an exemption from Corporate Tax is an Exempt Person.63 An Exempt Person is required to maintain all records and documents that enable the FTA to ascertain the exemption status for a period of 7 years following the end of the Tax Period to which the exemption is claimed.64 6.2. Tax Registration A Person that is an Exempt Person, by virtue of Article 7 or Article 8 of the Corporate Tax Law, is not required to register for Corporate Tax purposes with the FTA, unless it conducts other Business subject to Corporate Tax.65 If the Exempt Person is subject to Corporate Tax on their other Business, the Person will be required to register with the FTA for Corporate Tax with regards to that Business, in the form and manner and within the timeline prescribed by the FTA.66 The Person may deregister for Corporate Tax purposes where there is a cessation of that other Business.67 A situation could arise where a Person conducting a Business that is ancillary or incidental to its Extractive Business/Non-Extractive Natural Resource Business has registered for Corporate Tax with the FTA because its Revenue exceeds 5% of the total Revenue of the Person and then finds that its Revenue during a subsequent Tax Period falls below the 5% threshold and so can benefit from the exemption for ancillary or incidental Business. In such a situation, the Person has not ceased its Business, so should remain registered for Corporate Tax but would file a nil Tax Return for any Tax Period in which the 5% threshold is not exceeded. 63 Article 4(1)(c) and 4(1)(d) of the Corporate Tax Law. 64 Article 56(2) of the Corporate Tax Law. 65 Article 2(1)(c), 2(1)(d) and 2(2) of Ministerial Decision No. 43 of 2023. 66 Article 51(1) of the Corporate Tax Law. 67 Article 52(1) of the Corporate Tax Law. Corporate Tax Guide | Extractive and Non-Extractive Business | CTGEPX1 35

Article 4 – Requirement to Register for Corporate Tax A Non-Resident Person that has a nexus in the State in accordance with Article (2) of this Decision shall be required to register for Corporate Tax with the Authority in accordance with Article (51) of the Corporate Tax Law.