1) Where a Taxable Person ceases to carry on an Economic Activity, including cases where a legal Person ceases to exist as a legal Person that Taxable Person shall deregister. Deregistration will take effect from the date determined by the Authority after its approval of the deregistration.
2) Where at the end of any month, a non-resident Taxable Person has not made any Taxable Supplies in respect of which it is obligated to report Tax in the Kingdom in the most recent twelve-month period that Taxable Person must deregister. Deregistration will take effect from the date determined by the Authority after its approval of the deregistration.
3) At the end of any month, a resident Taxable Person is required to deregister where all of the following occur:
a) The total value of the Taxable Person’s annual Supplies or annual expenses in the twelve months then ended does not exceed the Voluntary Registration Threshold,
b) The total value of the Taxable Person’s annual Supplies or annual expenses in the twenty-four months then ended does not exceed the Mandatory Registration Threshold,
c) The total value of the Taxable Person’s annual Supplies or annual expenses in that month and the eleven months following is not expected to exceed the Voluntary Registration Threshold.
4) A Taxable Person shall apply for deregistration to the Authority within thirty (30) days of any of the cases prescribed in the first, second or third paragraphs of this article occurring.
5) In cases where the Taxable Person does not apply for deregistration to the Authority, the Authority may deregister that Person. In these cases, the Authority will issue a notification.
6) At the end of any month, a Taxable Person who is not required to deregister may apply to deregister where both:
a) its annual Supplies made in the Kingdom in the last twelve months do not exceed the Mandatory Registration Threshold,
b) its expected annual Supplies made in the Kingdom in that month and the eleven months following do not exceed the Mandatory Registration Threshold.
7) The deregistration takes effect on the date determined by the Authority after its approval of the deregistration.
8) A Taxable Person may not apply to deregister in accordance with this article in cases where it has been registered for less than twelve months.
9) An application under the fourth paragraph of this article or under the sixth paragraph of this article must be made in an application in the form prescribed by the Authority.
10) The Authority may request documentation from the Taxable Person to evidence that the Economic Activity has ceased or to evidence the value of Taxable Supplies made or expected to be made.
11) The Authority may refuse an application for deregistration where it does not have sufficient evidence that the Taxable Person is eligible to deregister.
12) The Authority will issue a notification that confirms the deregistration of a Taxable Person or the refusal of an application to deregister.
GCC FinTax is a community for Tax and Finance professionals from GCC to share knowledge, learn and network.
