If you’re a founder closing down a side business, scaling back operations, or no longer meeting the taxable income threshold, you might think you’re done with corporate tax. However, there’s one last — and often missed — step: corporate tax deregistration.

Think of deregistration as your formal exit from the UAE’s tax system. Without completing it, your business remains active in the Federal Tax Authority’s (FTA) records, meaning you’re still expected to file returns and may face penalties. Whether you’ve shut down, merged, or restructured your entity, this step ensures a clean and compliant break.

Who Needs to Apply for Corporate Tax Deregistration?

You’re expected to apply for deregistration if:

• Your business has permanently ceased operations
• Your taxable income has consistently remained below AED 375,000
• Your entity is being liquidated, merged, or restructured
• You’ve shifted to a business activity or jurisdiction not subject to UAE Corporate Tax

Why Corporate Tax Deregistration Matters

Even if you’re not earning taxable income, staying registered means you’re still obligated to submit corporate tax filings. Failure to do so can result in fines, even if no tax is payable. By completing the deregistration process, you:

• End your legal obligation to file future returns
• Avoid late filing penalties
• Enable smoother liquidation or restructuring
• Maintain a clean record with the FTA

Deregistration isn’t just a formality — it’s the last essential compliance step to avoid future hassles.

When Should You Apply?

The FTA requires businesses to apply for deregistration within 3 months of the triggering event — such as ceasing operations, restructuring, or falling below the taxable income threshold. Missing this deadline could lead to non-compliance penalties or delays.

To ensure your exit is smooth and timely, initiate the deregistration process as soon as your situation qualifies.

Step-by-Step: How to Deregister for Corporate Tax

The process is straightforward but must be followed carefully. Here’s how it works:

1. Log into EmaraTax

Access your business account through the FTA’s EmaraTax portal.

2. Choose Deregistration Option

Under the corporate tax registration tab, select the option to initiate deregistration.

3. File Final Tax Return

Before applying, ensure that your final tax return is submitted. This is a mandatory step and confirms there are no outstanding liabilities.

4. Upload Required Documents

Depending on your business case, include documents like:

• Proof of business closure
• Liquidation certificates
• Ownership or structure change documentation

5. Submit the Application

Once everything is complete, submit your application. The FTA will review and respond with approval or request further clarification.

Common Mistakes to Avoid

Businesses often make errors during deregistration that can delay approval. Here are some to avoid:

• Skipping the final tax return — Your application will be rejected if this isn’t submitted first
• Expecting automatic deregistration — It doesn’t happen on its own
• Providing incomplete documentation — Missing files cause delays
• Exceeding the 3-month window — Late applications can lead to fines

Close with Confidence — Kitaab Can Help

If you’re transitioning out of the tax system, Kitaab is here to make the process easier. Our team helps businesses navigate complex accounting and compliance challenges, including CT return submissions and overall corporate tax support.

We ensure that all paperwork is in order, deadlines are met, and no loose ends are left behind — so you can exit with confidence.

Need Support with Corporate Tax Matters?

Whether you’re planning to file your final CT return or preparing to wind down operations, our team at Kitaab is ready to assist.

???? Talk to a Corporate Tax Specialist at Kitaab Today
And make your business exit seamless and compliant.