Navigating Tax Perspectives Across Multiple Business Ventures

Background:
Mrs. F, a natural person, is actively involved in managing two businesses within the UAE. Each business operates within the standard tax period, running from January 1 to December 31. On December 31, 2025, Mrs. F made the decision to cease operations for one of her businesses. Prior to this, she ensured compliance by filing all necessary tax returns up to the tax period ending on December 31, 2025. Additionally, Mrs. F has no outstanding corporate tax liabilities for either of her businesses.

Analysis:
Despite Mrs. F’s proactive approach in fulfilling her tax obligations, the decision to deregister for corporate tax purposes requires careful consideration. Although she has met all requirements for tax filing and payment up to the end of the 2025 tax period, Mrs. F continues to operate her other business venture.

According to UAE tax regulations, Mrs. F should refrain from applying to deregister for corporate tax purposes while still conducting her remaining business. This is because her active involvement in another business necessitates ongoing compliance with tax obligations, including the filing of tax returns and payment of corporate tax liabilities.

Conclusion:
In conclusion, Mrs. F’s situation highlights the importance of navigating the complexities associated with managing multiple businesses in the UAE. While she has met her tax obligations for the ceased business up to the end of 2025, her continued involvement in another business requires ongoing compliance with corporate tax requirements. Therefore, Mrs. F should refrain from applying to deregister for corporate tax purposes until she fully ceases operations for all her business ventures. This ensures adherence to regulatory requirements and avoids potential complications in tax compliance.