Securing a Tax Clearance Certificate in UAE has become an essential part of business compliance especially after the introduction of corporate tax and the strengthening of Federal Tax Authority regulations. Whether you are closing a business, changing ownership, completing VAT deregistration or proving clean tax history this certificate confirms that a company has fulfilled all FTA tax requirements UAE and has no pending dues.
This blog explains everything in simple language so you understand the full process from eligibility and documentation to EmaraTax steps, fees, timelines and expert assistance.
Understanding the Tax Clearance Certificate in UAE
A Tax Clearance Certificate in UAE is an official confirmation issued by the Federal Tax Authority that states a business has paid all due taxes, filed all required returns and has no outstanding penalties. It also verifies that the entity has completed all VAT or corporate tax obligations.
This certificate is widely used during company closure, ownership transfer, and FTA deregistration processes. Many banks, government departments and free zone authorities also request it before approving final cancellation of a trade licence.
Who Must Obtain a Tax Clearance Certificate
Multiple groups require a Tax Clearance Certificate in UAE depending on their circumstances. These include:
- Companies undergoing liquidation
- Businesses applying for VAT deregistration
- Entities requesting corporate tax deregistration
- Owners transferring shares or selling the business
- Companies moving activities to a different jurisdiction
- Individuals needing proof of clean tax records for legal purposes
- Businesses renewing licences where authorities request financial compliance
The certificate essentially ensures that entities are compliant with UAE tax obligations before they exit or renew.
Key Scenarios Where a Tax Clearance Certificate Is Needed
There are several situations where government authorities require an FTA clearance certificate including:
- Finalising VAT deregistration when annual turnover falls below mandatory thresholds
- Corporate tax deregistration when a business shuts down or changes ownership
- Submitting documents for company liquidation
- Converting a business structure such as from sole establishment to LLC
- Renewing or cancelling trade licences in certain free zones
- Applying for bank account closure during company liquidation
Having this certificate protects owners from future penalties and confirms legal compliance with corporate tax compliance UAE rules.
Eligibility Requirements for Getting a Tax Clearance Certificate
To qualify for a Tax Clearance Certificate in UAE, a business must meet specific conditions including:
- All VAT and corporate tax returns must be filed
- All outstanding payments and penalties must be settled
- VAT deregistration must be approved where applicable
- Corporate tax registration or deregistration must be updated in EmaraTax
- Business licence status must match the request, especially during closure
- Liquidators must be appointed if the company is under liquidation
- All supporting documents must be uploaded clearly in the EmaraTax portal
If any of these steps are incomplete, the Federal Tax Authority may immediately reject the application.
Applying for a Tax Clearance Certificate in UAE Step by Step
Getting a Tax Clearance Certificate in UAE requires careful submission through the EmaraTax system. The process includes:
Step 1. Choose the correct application type
Select either VAT deregistration, corporate tax deregistration or tax clearance depending on your situation. Many businesses make errors at this very first step, causing rejection.
Step 2. Ensure all returns are filed
The FTA will not issue a certificate if any VAT or corporate tax return is pending. Late filings must be submitted before applying.
Step 3. Pay outstanding penalties
If your account has accumulated fines, you must clear them. The FTA will not process a clearance request until the account shows zero balance.
Step 4. Submit the application through EmaraTax
Attach supporting documents including trade licence, Emirates ID, proof of liquidation, financial statements and any required approvals.
Step 5. Await FTA review
The review period normally ranges between 5 to 10 working days, depending on business type and whether additional documents are needed.
Documents Required for a Tax Clearance Certificate in UAE
To complete the application successfully, prepare the following
- Trade licence copy
- Emirates ID of the owner or authorised signatory
- Passport copy
- Financial statements or bank statements
- VAT returns and payment receipts
- Corporate tax returns and payment confirmations
- Liquidation letter if business is closing
- Deregistration approval for VAT or corporate tax
- Memorandum of Association
Uploading clear and legible documents helps prevent processing delays.
How to Access and Download the Certificate in EmaraTax
Once approved, you can download the certificate online. The EmaraTax process is simple when you know the correct steps.
Step 1. EmaraTax Log In
Sign in to the EmaraTax portal using your registered email and password or use UAE Pass. If you are not registered you must create an account using your Emirates ID or passport and verify your details. We can also help you in creating your account, just get in touch with us at info@abcapital.ae
Step 2. Enter Required Business Details
After logging in enter your tax registration number and select the clearance request section. Complete all fields including business licence, type of deregistration and supporting documents.
Step 3. Final Review and Submission
Once the form is complete, review everything carefully. Make sure all figures match your financial submissions. Submit the request and wait for FTA confirmation. When approved, your certificate will be available for download from your dashboard.
In order to prevent FTA from raising any objections, we assist you at every stage of the application process. We promise prompt submission, correctness, and completeness.
Connect with the team of AB Capital Tax Services if you have any confusion or issue while accessing or downloading the certificate.
Cost and Government Fees for a Tax Clearance Certificate in UAE
AED 50 is the submission price for the company Tax Clearance Certificate (TCC) application in the UAE. Depending on the applicant’s tax registration status, there may be additional fees. Before applying, it is always important to confirm the most recent fees with the Federal Tax Authority (FTA) or a tax expert at AB Capital Services.
Additional costs may include:
- VAT return filing support
- Corporate tax calculations
- Late penalty settlements
- Liquidation document preparation
- Accounting or audit reports
Costs can increase for businesses with compliance gaps, incorrect filings or missing documentation.
Why the Tax Clearance Certificate Matters for UAE Businesses
The Tax Clearance Certificate in UAE is essential for long term compliance and legal protection. Its importance lies in:
- Ensuring the business is fully compliant with UAE tax obligations
- Avoiding unexpected penalties after company closure
- Smoothly liquidating or restructuring a business
- Preventing licence renewal issues
- Building credibility with banks and authorities
- Protecting owners from personal liabilities
This certificate serves as the official record that a business has met all FTA tax requirements UAE.
How AB Capital Tax Services Supports You
AB Capital Tax Services offers full support for obtaining your Tax Clearance Certificate in UAE from start to finish. Their team handles:
- VAT and corporate tax review
- Filing missing returns
- Clearing penalties
- Preparing liquidation or deregistration documents
- Submitting applications through EmaraTax
- Communicating directly with the Federal Tax Authority
- Ensuring the certificate is issued without delays
For businesses that want a smooth, error free process, AB Capital ensures compliance and complete guidance at every step.
Frequently Asked Questions
1. How long does it take to receive a Tax Clearance Certificate in UAE
Most applications for a Tax Clearance Certificate in UAE take 5 to 10 working days if all returns and payments are completed. Delays happen when documents are unclear or tax obligations are not fully settled. Using expert support speeds up the entire process and avoids rejection.
2. Is a Tax Clearance Certificate required for VAT deregistration
Yes, businesses applying for VAT deregistration must first complete all VAT filings and payments. A Tax Clearance Certificate in UAE confirms that the entity has cleared all VAT dues and met FTA tax requirements. Without full compliance the deregistration request will not be accepted.
3. Do companies need a Tax Clearance Certificate for liquidation
Absolutely. When a business is liquidated, the FTA requires proof that all tax obligations are complete. The Tax Clearance Certificate in UAE ensures that the company has no outstanding dues. This certificate is mandatory for closing bank accounts and cancelling licences.
4. Can individual freelancers also apply for a Tax Clearance Certificate
Yes, freelancers registered under a licence may need a Tax Clearance Certificate in UAE when closing their permit or updating their business structure. The FTA checks both VAT and corporate tax compliance before approving the request, even for solo professionals.
5. What happens if my Tax Clearance Certificate application gets rejected
Rejection usually occurs due to pending returns or unpaid penalties. You must correct the issues and resubmit. Once all UAE tax obligations are complete the Federal Tax Authority can approve the request. Professional assistance helps identify the exact error quickly.