Corporate Tax

Authorities in the UAE have established specific deadlines for businesses to submit their Corporate Tax registration applications. Effective from March 1, 2024, the Federal Tax Authority (FTA) has outlined timeframes for various segments of taxable entities or persons to register and comply with tax laws.

Resident Juridical Persons (Organisations) Incorporated Before March 1, 2024:

For businesses incorporated, established, or otherwise recognized prior to March 1, 2024, the FTA decision dictates registration deadlines based on the original month of incorporation, regardless of the year.

Resident Juridical Persons (Organisations) Incorporated After March 1, 2024:

For new resident businesses incorporated after March 1, the registration deadline is mostly three months from the date of incorporation. Specific deadlines as outlined by the FTA are:

  • For entities incorporated or recognized under UAE legislation, including free zone entities: Three months from the date of incorporation, establishment, or recognition.
  • For entities incorporated or recognized under the laws of another country or foreign jurisdiction: Three months from the end of the financial year of the entity.

Non-Resident Juridical Persons:

  • Prior to March 1: A person with a permanent establishment in the UAE has a registration deadline of nine months from the date of existence. For a person with a nexus in the UAE, the deadline is May 31.
  • After March 1: A person with a permanent establishment in the state has six months from the date of existence, while a person with a nexus in the state must register by May 31.

Natural Persons (Individuals Operating in Their Personal Capacity):

According to Rayma, the deadline for resident natural persons with a turnover exceeding Dh1 million is March 31 of the subsequent year. Non-resident natural persons must register within three months of meeting the tax subject requirements.

Penalties for Late Registration

Administrative penalties will be levied on taxable persons failing to submit Corporate Tax registration applications within the specified timeframes. Arun Gurung, regional finance director at Sovereign Corporate Services Dubai, advises businesses to carefully consider this update to meet relevant deadlines and avoid the Dh10,000 late registration penalties.

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