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Tax Clearance Certificate

Tax Clearance Certificate

Tax Clearance Certificate in UAE makes it easy to know that a tax-registered entity has paid all its outstanding tax debts or is not responsible for paying any taxes.

What benefit do you get from complying with all UAE tax regulations? You are compliant, so you do not have to pay non-compliance penalties or fees. Also, your reputation as a compliant entity remains intact, with no harm to it.

Tax Clearance Certificate
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So, how would someone know that you comply with all tax requirements in UAE?

The best resort, in this case, is a tax clearance certificate. FTA’s tax clearance certificate demonstrates that you have cleared all the tax liabilities in UAE.

Tax Clearance Certificate in UAE makes it easy to know that a tax-registered entity has paid all its outstanding tax debts or is not responsible for paying any taxes. Also, you can use it as a critical document to prove that you have no more tax liabilities when:

It is an attempt by the FTA to promote taxpayers’ compliance with UAE tax laws and regulations. So, if you do not have any pending tax liabilities, obtaining a tax clearance certificate is advisable. If you apply to FTA for a tax clearance certificate in UAE and FTA finds that you have not paid your tax liabilities, you do not get the certificate.

Without a tax clearance certificate in the UAE, you cannot proceed with your business requirements. So, it is an excellent practice to obtain a tax clearance certificate in UAE from FTA. You need to log in to the EmaraTax platform to apply for this certificate.

It is an attempt by the FTA to promote taxpayers’ compliance with UAE tax laws and regulations. So, if you do not have any pending tax liabilities, obtaining a tax clearance certificate is advisable. If you apply to FTA for a tax clearance certificate in UAE and FTA finds that you have not paid your tax liabilities, you do not get the certificate.

Without a tax clearance certificate in the UAE, you cannot proceed with your business requirements. So, it is an excellent practice to obtain a tax clearance certificate in UAE from FTA. You need to log in to the EmaraTax platform to apply for this certificate.

Applying for a tax clearance certificate in UAE becomes easier with FAME Advisory.

Tax Clearance Certificate Services In UAE

FAME Advisory is a top-class firm in UAE providing succession planning, business formation, and tax consultancy and advisory services. We guide you to make the best decisions related to tax, wealth distribution, and corporate structuring. Our experts provide full support in company formation and compliance with ESR and AML requirements.

One of our crucial competency areas is helping our clients obtain a tax clearance certificate in UAE. We help you apply for the same by filling up the form accurately on the EmaraTax platform. We also manage the documentation from existing records to ensure the completeness of the application.

The following are the steps to apply for the tax clearance certificate in UAE. Our range of tax compliance services includes the following:

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Our range of tax clearance certificate includes the following:

Log in or sign up

You must log in to the EmaraTax platform with your login credentials or UAE Pass. In the case of the absence of an EmaraTax account, you can sign up on the website. On login, the user can see the online user dashboard. We help you make an account if you don’t have one.

Fill the details

On the left panel, click on the Clearance Certificate tile under ‘Other Services’. You can click the ‘New Request’ to access the application form. This page provides guidance and necessary information for filling up the Tax clearance certificate application form.

You must fill in the following information:

The trade license dropdown list will feature your trade licenses in deregistered accounts – VAT, tax agency, or excise. Enter all the details – license issuing authority, license number, license issue and expiry dates. You must also mention your legal and license names in English and Arabic languages. You must upload a copy of the trade license as well.

Another dropdown on possible reasons for applying for a tax clearance certificate in UAE appears in the form. The options are:

The trade license dropdown list will feature your trade licenses in deregistered accounts – VAT, tax agency, or excise. Enter all the details – license issuing authority, license number, license issue and expiry dates. You must also mention your legal and license names in English and Arabic languages. You must upload a copy of the trade license as well.

Another dropdown on possible reasons for applying for a tax clearance certificate in UAE appears in the form. The options are:

Upload the scanned copy of your entity’s financial statements from the date of issue until the date of filling out the application. Attach a scanned copy of a declaration letter stating that you will not reach the mandatory threshold in the next 30 days. Along with this, there is space for additional comments from the applicant related to the reason.

If you select change of ownership, you must submit the sale contract. If you select business closing, proof of business closure is essential. In the case of the below mandatory or voluntary thresholds, you must upload the document showing your turnover from the de-registration date to the current date.

Now, you must fill in the Taxable Supplies and Expenses section details. You have two options. You can download the Excel template, fill in the details, and upload the document. Or, you can enter the details directly on the page. Ensure that you enter all the figures in UAE Dirhams (AED).

We help you fill in all these details accurately and in perfect order. We ensure no inconsistency in the information in the application and supporting documents. We make sure that the form is complete and accurate to avoid rejection or resubmission.

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Final review of the application

The final step is to review the application form and the details filled in it. We also check whether the documents submitted are correct and whether their information matches the application details. Once we review this, we need to fill in the declaration form. After checking all these, you must click ‘Submit’ to submit the form to FTA.

Thus, we help you at every step of the application so that FTA does not raise any issues against it. We guarantee completeness, accuracy, and timely submission.

Thus, we help you at every step of the application so that FTA does not raise any issues against it. We guarantee completeness, accuracy, and timely submission.

Want to prove your compliance with all tax-related requirements in UAE?

Get a tax clearance certificate in UAE with the help of FAME Advisory.

FAQs: Tax Clearance Certificate

Once your tax clearance certificate submission is successful, the system generates a reference number. You can check the status of your application on the dashboard.

  • If the FTA rejects it, you must create a new tax clearance certificate request.
  • If the FTA accepts it, you will receive a notification of the acceptance, followed by the tax clearance certificate.
  • If the FTA requires further details, it sends you an email notifying you of the error and requests you to re-submit it.
The tax clearance certificate is a necessary documentary proof for taxpayers to show they have no pending tax liabilities in their name. Authorities or other parties may ask taxpayers for tax clearance certificates:

  • Before merger and acquisition transactions
  • Before liquidating the firm
  • While changing the owners
  • As proof for accessing certain banking facilities
  • As evidence for issuing a visa
When you apply for a tax clearance certificate, there are chances that FTA conducts a tax audit on your firm. If you are non-compliant with tax laws, a tax liability may arise in your name. So, you must be careful about that. For tax registrants, a tax audit occurs. For non-tax registrants, you must prove to the FTA that you are not subject to tax registration.

Thus, before applying for a tax clearance certificate in UAE, you must review your tax approaches, liabilities, and records. Check that you are compliant with all the relevant tax requirements in UAE. If you are non-compliant, make a compliance plan and meet all the tax requirements.

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