The Federal Tax Authority (FTA) has announced an extension of the deadline for filing Tax Returns and settling Corporate Tax Payable to December 31, 2024.
This extension applies to businesses with short Tax Periods ending on or before February 29, 2024.
The decision, issued as Decision No. 7 of 2024, aligns with the Federal Decree-Law No. 47 of 2022 regarding the taxation of corporations and businesses.
Khaled Ali Al Bustani, Director-General of the FTA, stated the authority's commitment to supporting taxpayers, particularly new businesses navigating their first Corporate Tax period.
"We recognize the challenges faced by businesses with shorter Tax Periods and have taken proactive measures to assist them in fulfilling their Corporate Tax obligations,"
he said.
Al Bustani emphasized the FTA's goal of promoting timely and accurate tax filings by providing a reasonable timeframe for compliance, thus reducing administrative pressures and penalties. The decision reflects the FTA's ongoing commitment to creating a supportive tax environment in the UAE.
Under the new guidelines, taxable entities incorporated or recognized after June 1, 2023, with financial years ending before March 1, 2024, can now file their Corporate Tax Returns and settle their tax payments by the extended deadline. For instance, a company established on June 10, 2023, with a financial year from January 1 to December 31, would have had its initial Tax Period from June 10, 2023, to December 31, 2023. Previously required to submit their returns by September 30, 2024, they now have until December 31, 2024.
News Source: Emirates News Agency
