Registration Deadline for Corporate Tax in UAE
Introduction
Corporate Tax in UAE is a direct charge on the net revenue or profits made by companies and enterprises doing business within the country’s boundaries. The Corporate Tax Law, which is governed by Federal Decree-Law No. 47 of 2022, requires businesses to pay taxes in accordance with their taxable income.
Commencing on June 1, 2023, this law endeavors to expedite the United Arab Emirates’ progress while conforming to global norms concerning tax transparency and the avoidance of detrimental tax practices.
The Federal Tax Authority oversees, enforces, and collects corporate and other federal taxes in the United Arab Emirates in accordance with the Corporate Tax Law. To guarantee compliance, this entails offering instructions, answering questions, and holding awareness campaigns.
In this blog, we will provide full details of the Registration Deadline for corporate tax in UAE, eligibility criteria, and procedure for filing a corporate tax.
Corporate Tax in UAE Registration Deadlines
The UAE Federal Tax Authority published Decision No. 3 of 2024 on February 27, 2024, defining the due dates by which organizations must file their applications to register for corporate tax.
Corporate entities must submit their applications by a deadline that often corresponds to the date on which their licenses were issued; the first registrations must be submitted by May 31, 2024.
The new FTA Decision, which goes into effect on March 1, 2024, establishes deadlines for natural and juridical persons who are either resident or non-resident entities to apply for corporate tax registration.
Below are the specifics of a few of the key deadlines. Failure to meet the applicable deadline will result in a penalty of AED 10,000.
Residents
A company must file a tax registration application by the deadlines listed below if it is formed, established, or recognized before March 1, 2024.
The date of license issuance, regardless of the year of issuance (if an individual possesses multiple licenses, the license with the earliest issuance date will be utilized).
If someone is not in possession of a license on March 1, 2024, they have three months from the decision’s effective date—that is, until May 31, 2024.
Month of License Issuance
(The year the license was issued is unimportant)
January
February
March
April
May
July
August
September
October
November
December
If someone is not in possession of a license on March 1, 2024
Registration Deadline to Apply for Corporate Tax in UAE
31 May 2024
31 May 2024
30 June 2024
30 June 2024
31 July 2024
30 September 2024
31 October 2024
31 October 2024
30 November 2024
30 November 2024
31 December 2024
They have three months from the decision's effective date—that is, until May 31, 2024.
Category of Juridical Persons
- A person who is recognized or established in accordance with the relevant laws in the United Arab Emirates, including a Free Zone Person.
- A person who is successfully managed and controlled in the United Arab Emirates and who is incorporated, established, or recognized under the appropriate legislation of a foreign jurisdiction.
The Last Day to File an Application for Tax Registration
- Three months from the date of creation and recognition or incorporation.
- Three months following the conclusion of the individual’s fiscal year.
Non-Resident Individuals
- Before March 1, 2024, if the UAE branch was subject to company tax, then within nine months of its founding.
- Within 6 and 9 months of the UAE branch’s founding, provided that the branch became subject to corporation tax on or after March 1, 2024.
Who Should Register for Corporate Tax in UAE?
There is no room for doubt, as all companies doing business in the United Arab Emirates must register for corporate tax by 2024, according to the Federal Tax Authority.
This policy applies to businesses, regardless of how profitable they are or how long they have been in business.
Consequences of Missing the Deadline
The penalty was intended to encourage people to follow tax regulations and file their returns on time. The amount of the penalty for late tax registration is associated with the excise tax and value-added tax penalties.
The schedule of violations and penalties for administration from the Cabinet Decision of 2023 was made public on February 27, 2024.
The latter described the administrative fines that the Federal Tax Authority (FTA) would impose for violations related to the implementation of the Corporate Tax in UAE. The effective date of these fines is August 1, 2023. The Cabinet decision will go into effect on March 1, 2024.
Hence, businesses that fail to submit their corporation tax applications by the deadline set by the Federal Tax Authority would be subject to an administrative penalty of AED 10,000 for late registration of Corporate Tax in UAE.
How to Register for Corporate Tax in UAE?
According to the UAE CT Law, in order to receive a Tax Registration Number (TRN), all Taxable Persons and certain categories of Exempt Persons (such as Qualifying Investment Funds and Qualifying Public Benefit organizations) must register for Corporate Tax (CT) with the Federal Tax Authority (FTA).
The FTA’s Decision No. 7 of 2023 earlier specified the timelines for obtaining CT registration and requesting relief from the UAE CT Law for particular types of Exempt Persons.
Steps to Register for Corporate Tax in UAE on EmaraTax
- Login to EmaraTax & add a taxable person
- Click Start in the CT Registration Tab
- Choose your Entity type
- Submit identification Details
- Add your Business Activities
- Join the Owners
- Enter Contact Details
- Add Authorized Signatory
- Review and submit the Application
- Wait for the confirmation mail
Corporate Tax Registration Services in UAE
For help with corporate tax registration in EmaraTax, contact the knowledgeable corporate tax professionals at Bader Saleh Auditing in Dubai. We walk you through the corporate income tax registration process for a firm. We assist you in compiling the necessary paperwork for corporation tax registration and ensure that it is submitted in full compliance.
You can apply for a tax registration number from the Federal Tax Authority (FTA) and file UAE corporate tax returns with the assistance of our FTA-approved tax agents in the UAE. In addition to helping with the planning and submission of annual tax returns and offering advice on the tax consequences of various company operations, BS Auditing Dubai can assist companies before the Federal Tax Authority (FTA) in the event of an audit or legal dispute
