New UAE Corporate Tax Registration Deadlines: Essential Information for Businesses

Maryam Pervez -

The UAE government has set new deadlines for businesses to register for corporate tax, starting from March 1. Not following these deadlines could lead to fines of up to Dh10,000 ($2,722). Businesses must know and follow these new rules.

Understanding the new tax deadlines

As per the recent announcement by the Federal Tax Authority (FTA), companies based in the UAE before March 1 need to follow certain deadlines this year to register for corporate tax. The deadline depends on when the company's license was issued. For example, if a company got its license in January or February, they must submit their tax registration by May 31 to avoid penalties. Additionally, if a business has multiple licenses, they should follow the deadline of the license issued earliest.

Key highlights of FTA decision No. 3 of 2024

The FTA's Decision No. 3 of 2024 lays out the schedule for corporate tax registration for taxable persons, stressing the importance of adhering to registration requirements promptly. For resident juridical persons 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. Non-resident juridical persons and natural persons conducting business above a certain threshold also have specific deadlines based on their circumstances. Failure to submit the tax registration application on time may incur penalties of Dhs10,000 per taxable person, as outlined in Cabinet Decision No. 75.

Next Steps:

  1. Assess Categorization: Businesses should evaluate their categorization to determine the relevant deadline for submitting their tax registration applications. This step is crucial to avoid potential penalties.
  2. Ensure Timely Compliance: Businesses need to comply with registration requirements promptly to maintain regulatory adherence. This proactive approach helps mitigate financial risks associated with non-compliance.
  3. Stay Informed and Proactive: As the UAE refines its tax framework, businesses must remain informed about regulatory updates and proactive in fulfilling their tax obligations. This commitment supports the nation's economic objectives and contributes to a favorable business environment.

By following these steps, businesses can navigate the tax registration process effectively and contribute to the UAE's ongoing economic development.

News Source: Gulf Business