Why Tax Clearance Matters During UAE Liquidation

Avoid Delays, Penalties, and Legal Risks with Proper FTA Compliance

When liquidating a company in the UAE, many business owners overlook one critical step: tax clearance. Whether your entity is VAT-registered or not, obtaining formal clearance from the Federal Tax Authority (FTA) is essential to finalize the closure legally and avoid future liabilities.

What Is Tax Clearance?

Tax clearance is an official confirmation from the FTA that your company has fulfilled all its tax obligations. This includes filing final VAT returns, settling outstanding dues, and deregistering from the VAT system if applicable.

Why It’s Crucial During Liquidation

Without tax clearance, your liquidation request can be delayed or rejected. The FTA may flag unpaid taxes, missing filings, or incorrect deregistration forms—leading to penalties or legal complications. Even dormant companies must formally deregister if they were VAT-registered.

Key Steps to Secure Tax Clearance

• File Final VAT Return: Submit your last VAT return covering all taxable transactions.
• Settle Outstanding Dues: Pay any pending VAT amounts, penalties, or administrative fees.
• Submit Deregistration Request: Apply for VAT deregistration through the FTA portal.
• Respond to FTA Queries: Provide supporting documents if requested during review.
• Receive Clearance Certificate: Once approved, this certificate is submitted with your liquidation file.

How The Capital Zone Helps

We manage the entire tax clearance process—from final filings to FTA coordination—ensuring your business exits the UAE market cleanly and compliantly. Our team stays updated with the latest FTA protocols to avoid delays and protect your company’s reputation.

Need help with VAT deregistration or tax clearance?
📞 Contact The Capital Zone for expert support.