Tax Clearance Certificate in UAE

The Federal Tax Authority now issues an electronic tax clearance certificate in UAE that proves a business has no outstanding federal tax debts or penalties at a given date. 

As more entities register for VAT and Corporate Tax, banks, regulators and buyers increasingly ask for this proof before approving loans, mergers or closures. 

A clear process on EmaraTax makes obtaining the certificate straightforward for firms that already keep filings and payments tidy.

What Is A Tax Clearance Certificate In UAE?

An FTA clearance certificate is an electronic confirmation that a taxable person has no pending liabilities with the Authority at the time of issue. It shows that tax returns are filed and assessed amounts are paid, including penalties.

The certificate is usually valid for one year and can be issued to any active tax-registered business that meets the conditions. It sits beside other official letters such as registration and deregistration certificates, but focuses on the current compliance position rather than registration status alone.

When Is FTA Tax Clearance Certificate Usually Required?

Authorities, counterparties and advisers tend to request a FTA tax clearance certificate at key transition moments. Common situations include:

• Before VAT or Corporate Tax deregistration
• During company liquidation or strike-off procedures
• When a buyer conducts due diligence for an acquisition or share transfer
• While negotiating certain banking facilities or visas

Guides on liquidation and deregistration emphasise that FTA clearance is now standard alongside economic-substance, labour and licensing checks.

VAT Clearance Certificate UAE

A VAT clearance certificate UAE is often requested before or together with VAT deregistration. Advisory material notes that the FTA will not approve deregistration unless all VAT returns are filed and dues are settled.

In practice, EmaraTax first handles the deregistration application. Once the FTA reviews the final return and payments, it can issue both a deregistration certificate and, where requested, a clearance confirming that no VAT liabilities remain.

This clears the path for licence cancellation with local authorities and reassures banks or buyers that no hidden VAT exposure should surface later.

Corporate Tax Clearance Certificate UAE

As Corporate Tax takes full effect, a corporate tax clearance certificate UAE is becoming part of standard exit packs. FTA and advisory guides explain that deregistration requires filing the final Corporate Tax return. Businesses must pay any due tax and settle penalties before the FTA accepts the deregistration request.

Only after that process can an entity obtain a deregistration certificate and, where needed, a separate clearance confirming there are no outstanding Corporate Tax liabilities. Businesses that ignore this sequence risk ongoing assessments and penalties even after commercial activity stops.

Eligibility And Pre-Checks Before Applying

Before starting a tax clearance request, good practice is to run an internal checklist:

• Confirm that all VAT and Corporate Tax returns due to date are filed in EmaraTax.
• Reconcile FTA account balances against internal ledgers and bank payments.
• Clear any administrative penalties that appear in the EmaraTax dashboard.
• Ensure contact details and trade licence records in EmaraTax match current legal documents.

The FTA can refuse a request or ask for more information if mismatches appear during review.

How To Apply For A Tax Clearance Certificate In UAE

The typical path runs through EmaraTax and follows a pattern similar to other FTA services:

1. Log in to EmaraTax using UAE Pass or existing credentials.
2. Open the taxable person account and choose the clearance certificate service card.
3. Select the trade licence, state the reason for requesting clearance and upload supporting documents.
4. Review the application, submit it and monitor notifications for any FTA queries.

A standard service fee of AED 50 for company clearance, though applicants should always check the current amount against the FTA service schedule.

Timelines vary with complexity, but many VAT deregistration approvals and related certificates are processed in about 20 business days when records are clean and documents are complete.

Tax Clearance For Company Liquidation UAE

Requesting tax clearance for company liquidation UAE fits into a broader closing sequence. Company-liquidation guides explain that final CT and VAT returns must cover taxable activity up to the liquidation date, with taxes paid before regulators complete the process.

Free-zone and mainland procedures typically require clearances or “no objection” letters out of banks, utilities and customs alongside the FTA certificate. Liquidators usually attach the tax clearance certificate to their final report to prove that federal tax liabilities will not follow owners after strike-off.

Planning the tax side early avoids last-minute delays when visas, leases and staff contracts are already winding down.

How Arnifi Helps With Tax Clearance And Deregistration

For many owners, the technical steps feel manageable but the risk of missing one return or penalty is real. Arnifi works with UAE businesses that want a quiet exit or restructuring path. 

Engagements often begin with a full reconciliation of VAT and Corporate Tax ledgers against EmaraTax statements. They then move into a structured plan that covers final filings and payments plus the FTA tax clearance certificate request.

Arnifi’s team also coordinates with liquidators, banks and free-zone authorities so that timing stays aligned across all clearances. That reduces situations where licence cancellation waits on a small unpaid penalty or an overlooked return and helps management close entities with a clean record.

Common Pitfalls And How To Avoid Them

Firms that struggle with tax clearance often face similar issues:

• Late or missing returns for periods after trade slowed but licences remained active.
• Penalties from incorrect deregistration dates or delayed applications.
• Misalignment between trade licence data and EmaraTax records, especially after share transfers or rebrands.
• Unclear tracking of instalment plans or penalty waivers agreed with the FTA.

A short internal project to fix these points before applying usually saves weeks compared with reacting to FTA queries during review.

Conclusion

An organised approach to the tax clearance certificate in UAE keeps exits, mergers and bank approvals moving instead of stalling on unresolved liabilities. The certificate confirms to buyers, lenders and regulators that Federal Tax Authority records match the story management tells, across VAT and Corporate Tax. 

Arnifi’s accounting and bookkeeping services support that outcome by aligning EmaraTax records and all linked returns and payments. It then guides applications so tax clearance lands on time and business decisions move ahead with fewer surprises and cleaner paperwork.

FAQs

1. What does a tax clearance certificate in UAE confirm?

It confirms that, on the issue date, the FTA shows no unpaid tax or penalties for the applicant. It reassures banks, buyers and regulators that records are currently clean.

2. Is a VAT clearance certificate UAE always needed for deregistration?

Deregistration requires all VAT returns and payments to be up to date. In many cases, the FTA will only finalise deregistration and issue clearance once liabilities are fully settled.

3. When is a corporate tax clearance certificate UAE required?

It is usually needed when a company stops business, restructures or transfers ownership. Authorities want proof that final Corporate Tax returns are filed and all dues are cleared.

4. How does tax clearance for company liquidation UAE fit into the process?

Liquidators attach the FTA clearance to final reports, alongside other approvals. Without it, licensing bodies may delay strike-off or ask shareholders to address pending federal tax issues.

5. How can Arnifi help with an FTA tax clearance certificate request?

Arnifi reviews filings, reconciles ledgers against EmaraTax, clears old penalties and then prepares the clearance application. That reduces follow-up questions and helps approvals arrive in predictable timelines.