UAE announces new Corporate Tax registration deadlines: What businesses need to know

The UAE government has introduced fresh corporate tax registration deadlines for eligible businesses, effective from March 1.

Failure to comply with these deadlines could result in fines of up to Dhs10,000 ($2,722), making it imperative for businesses to understand and adhere to the new regulations.

Understanding the new tax deadlines

Under the latest decision announced by the Federal Tax Authority (FTA), resident companies established or incorporated in the UAE prior to March 1 must adhere to specific deadlines this year to register for corporate tax.

The deadline varies depending on the month of issuance of the company’s licence.

For instance, companies whose licences were issued in January or February must submit their Corporate Tax registration applications no later than May 31 to avoid penalties.

Moreover, if a business holds multiple licences, the deadline for registration is determined based on the licence with the earliest issuance date.

 

Month of Licence Issuance The year the licence was issued is irrelevant	Deadline to apply for Corporate Tax Registration
January or February	May 31, 2024
March or April	June 30, 2024
May	July 31, 2024
June	August 31, 2024
July	September 30, 2024
August or September	October 31, 2024
October or November	November 30, 2024
December	December 31, 2024

Key highlights of FTA decision No. 3 of 2024

The FTA’s Decision No 3 of 2024 outlines the timeline for registration of taxable persons for corporate tax, emphasising the importance of timely compliance with registration requirements.

For Resident Juridical Persons

For juridical persons incorporated or established before March 1, 2024, the tax registration application must be submitted within three months from the effective date of Decision No 3 of 2024.

For juridical persons incorporated, established, or recognised under UAE legislation after March 1, 2024, specific timelines apply based on the date of incorporation, establishment, or recognition.

For Non-Resident Juridical Persons

Non-resident juridical persons must submit their tax registration applications within specified timelines depending on the existence of a Permanent Establishment (PE) or nexus in the UAE.

For Natural Persons

Natural persons conducting business activities exceeding the Dhs1m threshold have specific deadlines for tax registration application submission, based on residency status.

Fine for late registration

Cabinet Decision No 75 stipulates penalties for failure to submit tax registration applications within the prescribed timelines. Such penalties amount to Dhs10,000 per taxable person.

Next steps

Businesses are urged to assess their categorisation and determine the applicable deadline for tax registration application submission to avoid penalties.

Timely compliance with registration requirements is essential to ensure regulatory adherence and mitigate financial risks associated with non-compliance.

As the UAE continues to refine its tax framework, businesses must stay informed and proactive in fulfilling their tax obligations to support the nation’s economic objectives and foster a conducive business environment.