Admin
20 Mar 2023
Financial stability and compliance are essential for the success of organizations operating in the UAE.
The UAE has been making remarkable progress in improving its business environment, including reforms in the taxation system. One critical aspect for businesses operating in the UAE is adhering to corporate tax deadlines to avoid penalties. The Federal Tax Authority (FTA) has set critical deadlines for Corporate Tax Registration aimed at Federal Decree Law No.47 2022 to ensure compliance. This Decree, in action since June of the previous year, mandates that both natural and judicial persons, whether resident or non-resident in the UAE, register for corporate tax by specific deadlines starting from 1 March 2024.
Understanding The Registration Timelines:The UAE’s tax system requires all eligible businesses to register for corporate tax. The registration process involves providing detailed data about business activities, financial information, and other required documents.
Nature of Taxable Person | Month of License Issuance | Deadline to apply for Corporate Tax Registration | Remarks |
Judicial Resident incorporated prior to 1st March | January and February March and April May June July August and September October and November December When a person does not have a license on 1st March 2024 | 31 May 2024 30 June 2024 31st July 2024 31st August 2024 30th September 2024 31st October 2024 30th November 2024 31st December 2024 30th June 2024 | In case of more than one licenses with the earliest issuance date shall be accounted for |
Judicial Resident incorporated on or after 1st March | Incorporated under an applicable legislation in UAE Person incorporated under a foreign legislation but managed and controlled in UAE | 3 months from date of incorporation 3 months from end of financial year of person |  |
Non-Resident Judicial person incorporated prior to 1st March | Incorporated under an applicable legislation in UAE Person incorporated under a foreign legislation but managed and controlled in UAE | 9 months from date of existence of PE 30 May 2024 |  |
Non-resident Judicial person incorporated on or after 1st March | Person having PE in UAE Person having Nexus in UAE | 6 months from date of existence of PE 3 months from date of establishment of Nexus |  |
Resident Natural person | Business activity exceeding AED 1 million in calendar year | 31st March of subsequent calendar year |  |
Non-Resident Natural person | Business activity exceeding AED 1 million in calendar year 2024 or onward | 3 months of meeting the requirement is subject to tax | Â |
Corporate Tax Registration Deadlines for All Companies:The deadlines apply to all businesses that meet the standards for taxation mentioned above. To avoid missing the registration deadline, organizations should start the process early and acquire all necessary information required for registration. Seeking help from professional corporate tax consultants in the UAE can assist in streamlining the registration procedure and ensuring all requirements are met within the specific timeframe.
Penalties for Non-Compliance:The Federal Decree-Law No. 47, 2022 outlines the penalties for non-compliance with corporate tax regulations in the UAE. Failure to adhere to these registration deadlines will result in administrative penalties outlined in Cabinet Decision No. 75 of 2023. These penalties are part of the government’s strategy to promote tax compliance among businesses to aid the tax system.
Streamlining Registration Through Accucus Chartered Accountants Services:Accucus Chartered Accountants offers comprehensive tax representative services to help business groups streamline their corporate tax registration process in the UAE. With a team of skilled professionals, Accucus provides expert advice and assistance to ensure business groups meet all regulatory requirements and deadlines.
In conclusion, timely registration for corporate tax in the UAE can benefit businesses by avoiding penalties, maintaining compliance with the law, and protecting their reputation. By partnering with Accucus Chartered Accountants, businesses can navigate the complexities of the UAE tax system and ensure timely compliance, contributing to their economic stability and success in the dynamic business environment of Dubai, UAE.