Corporate tax: FTA extends filing deadline for some businesses

The UAE’s Federal Tax Authority (FTA) has extended the deadline for corporate tax return filing and payment to assist businesses, particularly those that are newly established.

Taxable persons incorporated on or after June 1, 2023, with tax periods ending on or before February 29, 2024, now have until December 31, 2024, to fulfill their corporate tax obligations.

This decision, formalised in FTA Decision No 7 of 2024, aims to ease the compliance process for businesses facing potential challenges during their initial tax periods, which are shorter than the standard 12 months

Extension of corporate tax filing to support new businesses

Khaled Ali Al Bustani, director general of the FTA, stated, “We are deeply committed to taking proactive measures that benefit taxpayers.

“Recognising the challenges new businesses may encounter, we have extended the deadline to help them meet their corporate tax obligations.”

The FTA’s decision allows those with tax periods ending on December 31, 2023, January 31, 2024, or February 29, 2024, to submit their tax returns and settle any corporate tax payable by the new deadline of December 31, 2024. For example, a company incorporated on June 10, 2023, with a financial year ending December 31, would have previously needed to file by September 30, 2024, but now has until the end of December 2024.

The FTA encourages all taxable persons to review the corporate tax Law and related legislation available on its website.

This move is part of the FTA’s broader strategy to foster a supportive tax environment in the UAE, aiming to minimise tax burdens while promoting timely compliance among businesses.