Deadlines for Corporate Tax Registration in the UAE

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The initial pivotal deadline for companies in the UAE falls on May 31, 2024. By this date, all businesses holding licenses dated in January or February are mandated to complete their registration for corporate taxation. Failure to meet this requirement or any delays will result in penalties amounting to Dh10,000. It's crucial for affected entities to adhere to this deadline to ensure compliance and avoid financial repercussions.

Deadlines to register for Corporate Tax depend on the type of taxable person and the date their license was issued (if applicable) -

• Juridical Persons
• Natural Persons

A. Deadlines for Juridical Persons (Companies)

Resident Companies:

• Incorporated before March 1, 2024: The deadline depends on the month of license issuance (year irrelevant). See table below for specific deadlines.
• Incorporated on or after March 1, 2024: Apply within 3 months of incorporation.

Month of License Issuance Deadline to Apply

Non-Resident Companies:

• With a Permanent Establishment (PE) before March 1, 2024: Apply within 9 months of PE establishment.
• With a nexus in the UAE: Apply by May 31, 2024.
• With a PE on or after March 1, 2024: Apply within 6 months of PE establishment.
• With a nexus in the UAE on or after March 1, 2024: Apply within 3 months of establishing nexus.

B. Deadlines for Natural Persons (Individuals)

• Resident Individuals: Conducting business in 2024 and exceeding the turnover threshold must register by March 31, 2025.
• Non-Resident Individuals: Conducting business in 2024 (and beyond) and exceeding the turnover threshold must register within 3 months of meeting the taxable person criteria.

Penalties for Late Registration:

The Decision outlines administrative penalties for non-compliance with registration deadlines. Refer to Cabinet Decision No. 75 of 2023 for details.

All businesses and individuals potentially liable for Corporate Tax should review the Decision and their specific registration deadlines to ensure timely compliance. Corporate Tax registration is accessible 24/7 via the EmaraTax digital platform, requiring approximately 30 minutes to complete.

Taxpayers already registered for VAT or Excise Tax can seamlessly initiate Corporate Tax registration through EmaraTax.

In the meantime, Taxable Persons who haven't previously registered with the FTA for other taxes must create a new user profile on EmaraTax, accessible at https://eservices.tax.gov.ae/. This process involves setting up an account using an email address and phone number. Once the user profile is established, they can proceed with the registration by specifying the taxpayer, opting for the Corporate Tax registration, and following a straightforward registration process.

In line with its commitment to enhancing service accessibility and fostering tax compliance, the FTA has expanded its service channels. Taxable Persons can now also submit their Corporate Tax registration applications at various government service centers across the nation. These centers, staffed with specialists, provide advanced e-services adhering to government service standards and overseen by qualified personnel.

Upon completing the application procedures and ensuring the accuracy of digitally entered data at the service center, FTA specialists internally review the application. Subsequently, the applicant receives their Tax Registration Number for Corporate Tax via the provided email address used in the registration application.

Disclaimer: Content posted is for informational and knowledge sharing purposes only, and is not intended to be a substitute for professional advice related to tax, finance or accounting. The view/interpretation of the publisher is based on the available Law, guidelines and information. Each reader should take due professional care before you act after reading the contents of that article/post. No warranty whatsoever is made that any of the articles are accurate and is not intended to provide, and should not be relied on for tax or accounting advice.