Key takeaways
- A UAE company that holds a VAT registration must apply to deregister from VAT within 30 business days of the day the obligation arises, according to the FTA's VAT deregistration service page (checked 15 October 2026).
- A UAE company that holds a corporate tax registration must file its corporate tax deregistration application within 3 months of the business ceasing, including by dissolution or liquidation (FTA Decision No. 6 of 2023, in force since 1 June 2023).
- Cancelling a UAE trade licence does not deregister the company with the FTA: the licensing authority and the FTA keep separate records, so a closing company files with both.
- The FTA will not deregister a company for corporate tax until all corporate tax and administrative penalties are paid and all returns, including the return up to the cessation date, are filed (Article 52 of Federal Decree-Law No. 47 of 2022).
- A late deregistration application carries a penalty of AED 1,000, repeated monthly up to AED 10,000, under the VAT penalty decision and again under the corporate tax penalty decision.
Do I need to deregister for VAT and corporate tax before closing my company?
Yes, if the company holds a VAT registration or a corporate tax registration, it has to apply to deregister from each, and the clock starts when the business stops, not when the licence is cancelled. The law fixes a deadline measured from cessation, not a requirement to finish before closing.
For corporate tax, Article 52(1) of Federal Decree-Law No. 47 of 2022 requires a person with a Tax Registration Number to file a deregistration application when its business ceases, including by dissolution or liquidation. For VAT, Article 21(1) of Federal Decree-Law No. 8 of 2017 requires a registrant to apply when it ceases to make taxable supplies. If your company never registered for VAT, there is nothing to deregister for VAT, but check the EmaraTax account before assuming that.
Which comes first: cancelling the licence or deregistering with the FTA?
In the sources we checked, neither authority makes the other a legal precondition, but the FTA's document lists point to a working order. The FTA's VAT service accepts a trade licence cancellation certificate, a liquidation letter or a board resolution as proof, so VAT can be filed before the licence is cancelled. The FTA's corporate tax service asks for the licence cancellation document and financial statements up to the cancellation date, so corporate tax usually follows the licence.
The UAE government's free zone closure guidance puts FTA deregistration (where it applies) before the licence cancellation or liquidation application. Dubai Economy's licence cancellation service asks for a board decision, an auditor's book and a final company budget, and states that a cancelled licence cannot be reactivated. Because the final accounts serve both the licensing authority and the FTA, prepare them once.
If you'd rather not track these dates by hand, the free UAE compliance calendar lists them for your company.
When is the deadline to deregister for VAT and corporate tax?
Corporate tax deregistration is due within 3 months of the business ceasing; VAT deregistration is due within 30 business days of the obligation arising, as of 15 October 2026. The two clocks differ in length and can start on different dates.
| Item | VAT | Corporate tax |
|---|---|---|
| Legal trigger | Ceasing to make taxable supplies (Article 21, Federal Decree-Law No. 8 of 2017) | Cessation of business, including dissolution or liquidation (Article 52, Federal Decree-Law No. 47 of 2022) |
| Application deadline | 30 business days from when the obligation arose (FTA service page) | 3 months from cessation (FTA Decision No. 6 of 2023) |
| Where to apply | EmaraTax, Taxable Person Account, VAT, Actions, De-Register | EmaraTax, corporate tax deregistration service |
| FTA fee | Free | Free |
| FTA processing time | About 30 business days from a complete application | Within 40 working days of a complete application |
| Final return | Within 28 days of the effective deregistration date | Return covering the period up to cessation, filed before deregistration |
Source: FTA service pages and the legislation named in each row, checked 15 October 2026.
Say a SHAMS consulting company stops trading on 1 January 2027 and cancels its licence on 1 March 2027. This is a hypothetical case, but it shows the trap: the VAT obligation arose when taxable supplies stopped, about two months before the licence cancellation, so the 30 business days would already have run out. The corporate tax window is measured from cessation of the business; if the date of cessation is the licence cancellation, it would run to about 1 June 2027, but confirm the cessation date with an adviser before relying on it.
What must be settled before the FTA will deregister the company?
The FTA won't complete a corporate tax deregistration while corporate tax, penalties or returns are outstanding. Article 52(2) of Federal Decree-Law No. 47 of 2022 says a Taxable Person shall not be deregistered unless it has paid all corporate tax and administrative penalties due and filed all tax returns, including the return for the period up to the cessation date.
For VAT, the FTA's service page says the deregistration certificate is issued only after the final VAT return is submitted and approved and all outstanding tax and administrative penalties are settled. The final return and any tax payable are due within 28 days of the effective deregistration date, which is the end of the final tax period.
So the books have to be current before a closing company applies.
What does it cost if I miss the deregistration deadlines?
A missed deadline costs AED 1,000 and then the same amount each month, capped at AED 10,000, under each tax's penalty decision.
| Penalty | Amount | Source |
|---|---|---|
| Late VAT deregistration application | AED 1,000, then monthly up to AED 10,000 | Cabinet Decision No. 40 of 2017, Table 1, Row 4 (MoF consolidated version, November 2025) |
| Late corporate tax deregistration application | AED 1,000, then monthly up to AED 10,000 | Cabinet Decision No. 75 of 2023, Table, Row 3 |
| Late corporate tax return | AED 500 per month (or part) for 12 months, then AED 1,000 per month | Cabinet Decision No. 75 of 2023, Table, Row 7 |
Amounts as of 15 October 2026. A company that misses both deregistrations is therefore exposed to up to AED 20,000 in deregistration penalties alone.
AED 10,000: the cap on the late deregistration penalty for each of VAT and corporate tax (AED 1,000, repeated monthly). Source: Cabinet Decision No. 40 of 2017 and Cabinet Decision No. 75 of 2023, checked 15 October 2026.
How do I deregister from VAT and corporate tax on EmaraTax?
You file two separate applications in EmaraTax, one for each tax, using the Taxable Person Account the company registered with. Both services are free.
- Close the books to the cessation date and prepare financial statements up to that date; both FTA services ask for them.
- Check that every VAT return and the corporate tax return for the final period are filed, and that tax and penalties are paid.
- In EmaraTax, open the Taxable Person Account, go to VAT, choose Actions and select De-Register; attach the licence cancellation certificate, liquidation letter or board resolution.
- File the corporate tax deregistration application on EmaraTax under the liquidation, bankruptcy or closure of business reason, attaching the licence cancellation document and financial statements.
- Answer any FTA request for information quickly: a corporate tax application not resubmitted within 60 calendar days of a request may be rejected.
- File the final VAT return within 28 days of the effective deregistration date and pay any tax due.
- Download the deregistration certificates from the EmaraTax dashboard and keep them with the liquidation file.
What most guides don't tell you
Most guides stop at "file within the deadline" and skip the edge cases below.
- The VAT clock can start before the licence is cancelled. Article 21(1) ties the obligation to ceasing taxable supplies, not to the licence. A company that stops trading in January and cancels in April is already late for VAT on a literal reading, so the date of the last taxable supply matters.
- Assets can carry VAT on the way out. The 2017 text of the VAT Executive Regulation treats business assets as supplied immediately before registration is cancelled, with the tax reported in the final return. That text has since been amended and we could not open the amended version, so confirm how it applies to your stock and equipment before planning the final return.
- Record keeping outlasts the company. Article 56 of Federal Decree-Law No. 47 of 2022 requires corporate tax records to be kept for seven years after the end of the relevant tax period, so decide who holds the books after the company is gone.
Which deadlines apply to your company?
Your deadlines depend on when the business stopped and which taxes it's registered for. The free UAE compliance calendar lists the tax and compliance dates for your company from a few questions, as a PDF and calendar file.
Frequently asked questions
What is the difference between deregistration and liquidation in the UAE? Liquidation winds up the company with its licensing authority, while deregistration ends its tax registrations with the FTA. They are separate filings, and the FTA's corporate tax service lists liquidation as one of the reasons to apply for deregistration.
How long does it take to liquidate a company in Dubai? Liquidation timing depends on the licensing authority and how quickly your final accounts and clearances are ready, so we don't quote a single figure. On the tax side, the FTA says it processes a corporate tax deregistration within 40 working days and a VAT deregistration within about 30 business days of a complete application.
What happens to employee visas when I close my company? Employee and investor visas need to be cancelled as part of the closure; the UAE government's free zone closure guidance lists this as a step before the licence is cancelled. The FTA filings are separate.
Can I just abandon my UAE company and leave the country? Leaving the company open doesn't stop the FTA penalties: the late deregistration penalty repeats monthly, up to AED 10,000 for each tax. Article 52(4) of the corporate tax law lets the FTA deregister a company on its own initiative, but you can't plan around that.
How do I close a company in the UAE properly? The UAE government's guidance lists a shareholder resolution, cancelling visas, settling financial obligations, FTA deregistration where it applies, and then the licence cancellation or liquidation application. Each authority issues its own confirmation, so keep every certificate.
About Qawi · Qawi is a corporate services firm licensed in the Sharjah Media City (SHAMS) free zone, handling company formation, visas and PRO, bookkeeping, VAT and corporate tax for UAE businesses. Guides are researched from FTA, Ministry of Finance and free zone sources. Qawi on LinkedIn
Sources
- FTA, Corporate Tax Deregistration service
- FTA, VAT Deregistration service
- FTA Decision No. 6 of 2023 on the Tax Deregistration Timeline
- Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses (Ministry of Finance)
- Cabinet Decision No. 75 of 2023 on Administrative Penalties for Corporate Tax Violations (FTA)
- Cabinet Decision No. 40 of 2017 and its amendments (Ministry of Finance, November 2025 version)
- Federal Decree-Law No. 8 of 2017 on Value Added Tax (UAE Legislation portal)
- Cabinet Decision No. 52 of 2017, VAT Executive Regulation, original text (UAE Legislation portal)
- Dubai Economy and Tourism, Cancel a licence service
- u.ae, Closing a business in a free zone
Last checked: 15 October 2026
This is general information, not tax or legal advice for your specific situation.