UAE Corporate Tax Registration: Understanding FTA Decision No. 3 of 2024

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Timeframe for the tax registration has been announced by Federal Tax Authority (FTA) via Decision No. 3 of 2024 (hereby referred to as ‘the decision’). The decision is issued on February 22, 2024, and is effective from March 1, 2024. 

The decision does not come with one answer to fit all taxpayers. The timeline for the corporate tax registration is subjective to different factors, mainly on the issuance of licenses and the date of establishment of the entity. In this document we have tried to elaborate the requirements as defined by the FTA in a more straightforward manner. 

At earliest, a resident juridical person can be required to be registered at the earliest of 31 May 2024 or within 3 months from the date of incorporation, establishment or recognition. Special conditions for natural persons, permanent establishments and nexus in UAE. 

The decision refers to the Clause 1 of the Article 51, of the Federal Decree Law No. 47 of 2022 i.e. the UAE Corporate Tax Law.  In lieu of the decision, the FTA has defined the timelines for the submission of application for the tax registration.  

Following timelines have been defined under this decision for the registration of tax payers: 

1.Resident Juridical person: 

A. Resident Person, incorporated or otherwise established or recognised prior to the effective date of this Decision, shall submit the Tax Registration application, in accordance with the following table: 

For the purposes of Clause 1 of this Article, where a juridical person has more  than one Licence, the Licence with the earliest issuance date shall be used. 

B. Resident Person incorporated or otherwise established or recognised on or after the effective date of this Decision, shall submit a Tax Registration application, in accordance with the following table: 

2. Non- Resident Juridical person: 

A. Juridical person, that is a Non-Resident Person prior to the effective date of this Decision, shall submit a Tax Registration application in accordance with the following table: 

B. Juridical person, that is a Non-Resident Person on or after the effective date of this Decision, shall submit a Tax Registration application in accordance with the following table: 

3. Natural Persons 

A natural person conducting a Business or Business Activity in the State shall 

submit a Tax Registration application in accordance with the following table: 

Failure in submission of the tax registration application for the corporate tax as per the above-mentioned timelines shall have penal implications of AED 10,000 as per Cabinet Decision No 75 of 2023. 

More Articles around FTA Decision No. 3 of 2024

• The Timeline for Registration of Taxable Persons for Corporate Tax Purposes

• UAE Businesses Urged to Expedite Corporate Tax Registration: New Timeline Demands Swift Compliance

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