Recent changes to the law have broadened the definition of a limited liability company.* New changes include allowing individuals to incorporate a limited liability company as a micro or small enterprise.**

Prior to the latest Circular Letter, issued by the Directorate General of Taxes,*** there was no guidance on how to obtain a Taxpayer Identification Number for companies set up by individuals (Small Companies). Yet, if these Small Companies reach the income threshold and meet certain criteria, they must pay corporate tax.

The recent Letter states that Small Companies may obtain a Taxpayer Identification Number by submitting an application (either electronically or in writing), together with an electronic registration certificate issued by the Ministry of Law and Human Rights, and, for Small Companies only, a photocopy of the Taxpayer Identification Number card.

*Law Number 11 of 2020 concerning Job Creation.

**Regulation Number 8 of 2021.

***Directorate General of Taxes issued a Circular Letter of the Director General of Taxes Number SE-20/PJ/2022.