Attention Business Owners! Don't Risk a AED 10,000 Penalty! Secure Your Corporate Tax Registration Today and Stay Compliant!
The implementation of Corporate Tax in the UAE marks a significant shift in the country’s tax landscape. Businesses are now required to register for Corporate Tax if they meet the specific thresholds outlined by the Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses and its amendments and Federal Tax Authority Decision No. 3 of 2024 – Issued 22 February 2024 (Effective 1 March 2024)
At Alkhazraji Audit Firm, a leading audit firm in the UAE, we understand the importance of staying compliant with new regulations. Missing the registration deadline can lead to administrative penalties of up to AED 10,000. This blog will provide a clear overview of the Corporate Tax registration deadlines in the UAE and guide you through the process.
Are You Required to Register for Corporate Tax?
Before delving into deadlines, let’s establish if your business falls under the purview of Corporate Tax. According to the regulations, all taxable persons are required to register for UAE Corporate Tax and obtain a Corporate Tax Registration Number as per the UAE Corporate tax law and following implementing decisions. This includes:
- Resident juridical persons (companies incorporated in the UAE mainland or free zones)
- Non Resident juridical persons with a permanent establishment in the UAE
- Natural persons
Deadlines for Corporate Tax Registration:
The deadlines for Corporate Tax registration vary depending on the date your business license was issued. The Federal Tax Authority (FTA) has implemented a structured approach based on the month of incorporation, irrespective of the year. Here’s a breakdown to help you determine your specific deadline:
Resident Juridical Persons
Month of License Issuance | Deadline for submitting a Tax Registration application |
January – February | 31 May 2024 |
March – April | 30 June 2024 |
May | 31 July 2024 |
June | 31 August 2024 |
July | 30 September 2024 |
August | 31 October 2024 |
September | 31 October 2024 |
October | 30 November 2024 |
November | 30 November 2024 |
December | 31 December 2024 |
Where a person does not have a License at the effective date of this Decision | 3 months from the effective date of this Decision |
Non-Resident Juridical Persons:
The deadlines for non-resident juridical persons depend on whether they have a permanent establishment (PE) in the UAE before or after March 1, 2024, or establish a nexus in the country:
- Non-Resident Juridical Person with a PE Existing Before March 1, 2024: These entities must register within 9 months from the date of existence of the Permanent Establishment.
- Non-Resident Juridical Person with a PE Established After March 1, 2024: These entities must register within six months from the date of existence of the Permanent Establishment.
- Non-Resident Juridical Person with a Nexus in the state Before March 1, 2024: These entities must register within three months from the effective date of this Decision.
- Non-Resident Juridical Person with a Nexus in the state After March 1, 2024: These entities must register within three months from the date of establishment of the nexus.
Natural Persons:
For natural persons conducting a business or business activity in the UAE and exceeding the AED 1 million threshold:
- Resident Individuals: These individuals need to register before March 31 of the subsequent Gregorian calendar year in which the business activity took place.
- Non-Resident Individuals: These individuals need to register within three months from the date they became a UAE taxpayer (exceeding the AED 1 million threshold).
Important Note:
- If a company has multiple licenses, the one with the earliest issuance date will be used to determine the registration deadline.
- Businesses incorporated after March 1, 2024, generally have three months from their incorporation date to register.
Failing to Register by the Deadline?
Delaying registration can lead to:
- Administrative penalties of up to AED 10,000
- Difficulties in filing tax returns and paying taxes on time
- Potential legal ramifications
Benefits of Early Registration:
Registering for Corporate Tax promptly offers several advantages:
- Avoidance of penalties
- Peace of mind knowing your business is compliant
- Opportunity to familiarize yourself with the Corporate Tax regime
- Ability to seek guidance from a qualified tax advisor
How Alkhazraji Audit Firm Can Help
As a trusted audit firm in the UAE with extensive experience in tax matters, Alkhazraji Audit Firm can assist you with the entire Corporate Tax registration process. Our team of tax specialists can:
- Evaluate your business’s tax accountability
- Determine your registration deadline
- Gather and prepare the necessary documents
- Submit your registration application to the FTA electronically
- Provide ongoing tax advice and support
Key Highlights:
- The UAE’s new Corporate Tax regime requires all taxable persons are required to register for UAE Corporate Tax and obtain a Corporate Tax Registration Number as per the UAE Corporate tax law and following implementing decisions.
- Missing the registration deadline can lead to administrative penalties of up to AED 10,000.
- Deadlines vary depending on the type of business entity (resident vs. non-resident) and the date of incorporation/commencement.
- Resident juridical persons (companies in UAE mainland/free zones) have deadlines based on license issuance month as mentioned in above table. New businesses incorporated after March 1, 2024 have 3 months from incorporation to register.
- Non-resident juridical persons with a PE before March 1, 2024 have 9 months to register from the date of existence of the Permanent Establishment. Those establishing a PE after March 1, 2024 have 6 months from the date of existence of the Permanent Establishment.
- Non-resident juridical persons establishing a nexus (economic connection) in the UAE Before March 1, 2024: These entities must register within three months from the effective date of this Decision.
- Non-resident juridical persons establishing a nexus (economic connection) in the UAE After March 1, 2024: These entities must register within three months from the date of establishment of the nexus.
- Natural persons conducting business and exceeding AED 1 million income may need to register (deadlines vary based on residency).
Don’t wait until the last minute! Contact Alkhazraji Audit Firm today to ensure your business is compliant with Corporate Tax regulations in the UAE.
Remember, timely registration is essential to avoid penalties and ensure a smooth transition into the new tax environment.
