The deadline for Corporate Tax (CT) registration for businesses in the United Arab Emirates looms ahead as the required date for filing your Corporate Tax registration application has been extended to 31st July 2024. This requirement applies to juridical persons with trade licenses that were issued during the months of March and April annually, notwithstanding the year of issuance of the trade licenses.
Earlier on 27 February 2024, the UAE Federal Tax Authority published decision No. 3 of 2024 concerning the requisite timeframe for the application of corporate tax registration.
Under the initial law, the FTA set the first date of the registration to be 31 May, 2024, with other due dates extending to 30, December 2024. The registration of CT involved substantial compliance from many businesses that sought to meet the initial deadline. Corresponding to a Public Clarification distributed by the FTA in February 2024, the following individuals were required to register by 31 May 2024:
• Juridical persons with trade licenses in January and February of the issue.
• Juridical persons who do not retain a trade license (including foreign entities well controlled & managed in the UAE)
• Legal entities having some connection established in the UAE.
The authorities have now already stated that those taxpayers incorporated in May are required to register with FTA for corporate tax by July 31, it was reported on Tuesday while failure to provide the registration application corresponds with penalties.
Additionally, an administrative penalty of Dh 10,000 is applicable to any business failing to submit their UAE corporate tax registration applications after the due date set by FTA commencing from March 1 this year as provided for by the Ministry of Finance.
The FTA on Tuesday explained, “that taxpayers must ensure that they register as provided under the set registration period or the specific category”.
Such deadlines were communicated beforehand through printed, video, and audio media, through the FTA’s official social media accounts, among others, and through reaching the registered company owners in the UAE.
Digital tax services
FTA said taxpayers can utilize the ‘EmaraTax’, a digital tax services platform available 24/7. It also facilitates unregistered persons to create a new user profile and acquire a tax registration number easily and appropriately via their email and phone number.
Taxable persons can also get the services of authorized tax agents listed on the FTA’s website and at government service centers across the UAE.
What is corporate tax?
Corporate tax is a form of direct tax imposed on the net income or profit of corporations and other businesses. Individuals operating business activities in the UAE will be under the corporate tax net only if their combined turnover exceeds Dh1 million a year.
