LISTEN TO THIS ARTICLE
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:
Date of Licence issuance irrespective of year of issuance | Deadline for submitting a Tax Registration application
|
1 January – 31 January | 31 May 2024 |
1 February – 28/29 February | 31 May 2024 |
1 March – 31 March | 30 June 2024 |
1 April – 30 April | 30 June 2024 |
1 May – 31 May | 31 July 2024 |
1 June – 30 June | 31 August 2024 |
1 July – 31 July | 30 September 2024 |
1 August – 31 August | 31 October 2024 |
1 September – 30 September | 31 October 2024 |
1 October – 31 October | 30 November 2024 |
1 November – 30 November | 30 November 2024 |
1 December – 31 December | 31 December 2024 |
Where a person does not have a licence at the effective date of this decision
| (3) three months from the effective date of this Decision
|
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:
Category of juridical persons
| Deadline for submitting a Tax Registration application
|
A person that is incorporated or otherwise established or recognised under the applicable legislation in the State, including a Free Zone Person
| (3) three months from the date of incorporation, establishment or recognition
|
A person that is incorporated or otherwise established or recognised under the applicable legislation of a foreign jurisdiction that is effectively managed and controlled in the State. | (3) three months from the end of the Financial Year of the person
|
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:
Category of juridical persons
| Deadline for submitting a Tax Registration application
|
A person that has a permanent establishment in the state
| (9) nine months from the date of existence of the permanent establishment
|
A person that has a nexus in the state
| (3) three months from the effective date of this decision
|
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:
Category of juridical persons | Deadline for submitting a Tax Registration application |
A person that has a permanent establishment in the state
| (6) six months from the date of existence of the permanent establishment
|
A person that has a nexus in the state
| (3) three months from the date of establishment of the nexus |
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:
Category of juridical persons
| Deadline for submitting a Tax Registration application |
A Resident Person who is conducting a Business or Business Activity during the 2024 Gregorian calendar year or subsequent years whose total Turnover derived in a Gregorian calendar year exceeds the threshold specified in the relevant tax legislation
| 31 March of the subsequent Gregorian calendar year
|
A Non-Resident Person who is conducting a Business or Business Activity during the 2024 Gregorian calendar year or subsequent years whose total Turnover derived in a Gregorian calendar year exceeds the threshold specified in the relevant tax legislation.
| (3) three months from the date of meeting the requirements of being subject to tax
|
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
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.
Contributor
Saba Wahaj, a seasoned Chartered Accountant with over 10 years of taxation experience, currently serves as Tax Manager at ALEC in Dubai. She provides strategic advice on VAT, income tax, and compliance for a construction group. With previous positions at SHUAA Capital and Etisalat Services Holding LLC, she managed tax implications across various jurisdictions.
