What is the Deadline for Corporate Tax Registration in UAE 2024 - IRHA Businessmen Services

What is the Deadline for Corporate Tax Registration in UAE 2024 IRHA Businessmen Services​

The Federal Tax Authority (FTA) published Decision No. 3 of 2024 on February 22, 2024, about the corporation tax registration deadline for taxable individuals in the United Arab Emirates. To ensure compliance with the UAE Corporate Tax Law, this decision sets specified timeframes for different categories of juridical and natural people to register for corporate tax. This article will provide a detailed overview of these deadlines and highlight the importance of timely registration.

Overview of FTA Decision No. 3 of 2024

The deadline for taxable entities to register with the FTA for corporate tax is set forth in FTA Decision No. 3 of 2024. Every taxable person is required by Article 51 of the UAE Corporate Tax Law to register for corporate tax within the timeframe set by the FTA and acquire a Tax Registration Number (TRN). This decision aims to streamline the tax registration process and ensure that all businesses operating in the UAE comply with the new tax regulations.

Deadline for Corporate Tax Registration

Businesses Established Before 1 March 2024

Date the License was issued (earliest issue date) Deadline to submit a Tax Registration application
January and February 31 May 2024
March and April 30 June 2024
May 31 July 2024
June 31 August 2024
July 30 September 2024
August and September 31 October 2024
October and November 30 November 2024
December 31 December 2024

Companies that were set up before 1 March 2024 need to register for taxes based on the date their licenses were issued. The deadlines are as follows:

For businesses without a license as of March 1, 2024, the deadline is three months from the effective date of the decision (June 1, 2024).

Businesses Established On or After 1 March 2024

For resident juristic persons incorporated, established, or recognised on or after 1 March 2024, the timelines are as follows:

Companies under UAE law, including those in free zones: three months from the date they were set up to register.

  • Companies from other countries managed and controlled in the UAE: three months from the end of their financial year to register.

Timeline for Non-Resident Juridical Persons

Non-resident companies must follow these deadlines:

  • Companies with a Permanent Establishment (PE) as of 1 March 2024: Nine months from when the PE started.
  • Companies with a connection before 1 March 2024: Three months from 1 March 2024 (by 1 June 2024).
  • Companies with a PE after 1 March 2024: Six months from when the PE started.
  • Companies with a connection on or after 1 March 2024: Three months from when the connection started.

Timeline for Natural Persons

Natural persons conducting business or professional activities in the UAE whose income exceeds AED 1 million must register for corporate tax within the following deadlines:

  • Resident individuals: As of March 31 of the following Gregorian calendar year in which the business activities took place.
  • Non-resident individuals: Within three months of fulfilling the requirements for being subject to tax.

Penalties for Late Tax Registration

According to Cabinet Decision No. 75, which has been updated to include penalties for delays in tax registration, each business will be fined AED 10,000 for failing to register for taxes on time. Businesses must adhere to the deadlines to avoid these penalties.

Key Takeaways and Next Steps

Businesses in the UAE should check their category and find out the correct deadline for tax registration. It is important to apply on time to avoid penalties and follow UAE tax rules. Here are the main steps to follow:

  • Identify your category: Find out whether you are a resident or non-resident company or an individual, and know your specific registration deadlines.
  • Gather required documents: Prepare all required documents, including business licenses and financial records.
  • Complete registration forms: Fill out the tax registration forms accurately and completely.
  • Submit on time: Make sure your application is submitted before the deadline.

Seek professional assistance: Consider consulting tax professionals to ensure compliance and address any questions or concerns.

Conclusion

FTA Decision No. 3, 2024, gives businesses clear deadlines to register for corporate tax in the UAE. Knowing these deadlines and following the rules is important to avoid penalties and stay in good standing with the UAE tax authorities. By meeting deadlines and getting assistance when needed, businesses can ensure their corporate tax registration goes smoothly and on time.

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