The Federal Tax Authority (FTA) have announced deadlines for completing the Corporate Tax Registration for Taxable persons in UAE. The Decision comes into effect from March 1, 2024.
Background
The FTA has issued new a decision that specifies the timeframes for applying for the Corporate Tax (CT) Registration. The CT regime, which came into effect on 1st June 2023 and applicable for financial years starting on or after June 1, 2023, mandates all taxable persons to register for the Corporate Tax.
Deadlines for Corporate Tax
The new decision defines the deadlines for applying to register for the Corporate Tax. The decision, applicable to both Juridical persons and natural persons is being explained as below:
- Resident – Juridical Person incorporated before 1st March 2024
According to the decision, a Resident Juridical Person, incorporated or established prior to March 1, 2024 is subject to the following deadlines:
| Month of License Issuance
(Year of license issuance is irrelevant) |
Deadline to Register for CT |
| 1st Jan – 28/29th Feb | May 31, 2024 |
| 1st Mar-30th Apr | June 30, 2024 |
| 1st May – 30th May | July 31, 2024 |
| 1st June – 30th June | August 31, 2024 |
| 1st July – 31st July | September 30, 2024 |
| 1st Aug – 30th Sept | October 31, 2024 |
| 1st Oct – 30th Nov | November 30, 2024 |
| 1st Dec – 31st Dec | December 31, 2024 |
| Persons that do not have a license as of March 1, 2024 | May 31, 2024 |
For Juridical Persons holding multiple licences, the deadline to apply for CT Registration is based on the license that has the earliest issuance date..
- Resident Juridical Person – Incorporated on or after March 1, 2024
Resident Juridical Persons that are Incorporated /established/ recognised on or after the effective date (March 1, 2024) under the applicable legislations in the state (including Free Zone) must apply to register for Corporate Tax within three months from the date of incorporation, establishment or recognition.
Resident Juridical Persons, which are registered/ recognised on or after the effective date under the applicable laws of another country and whose Place of Effective Management lies in the UAE, must apply to register for Corporate Tax within 3 months from the end of their Financial Year.
- Juridical Person – who is a Non-Resident before March 1, 2024
A Juridical Taxable Person who is Non-Resident (with Permanent Establishment in the UAE) prior to March 1, 2024 must apply to register for Corporate Tax within a period of nine months from the date of the existence of the Permanent Establishment in the UAE.
Meanwhile, a Juridical Taxable person that is a Non-Resident (with a nexus in the country) prior to March 1, 2024 must apply to register by May 31, 2024.
- Non-Resident Juridical Person – Incorporated after March 1, 2024
A Juridical Taxable person that is a Non-Resident (with Permanent Establishment in the UAE) on or after March 1, 2024 is required to apply to register for Corporate Tax within six months of the existence of the Permanent Establishment in the UAE.
Whereas a juridical person that is a Non-Resident Person with a nexus in the country on or after March 1, 2024 must apply to register within a maximum timeframe of three months from the date of establishing a nexus in the UAE.
- Natural Person
A Resident Natural Person who conducts a Business or Business Activity during the Georgian calendar year 2024 or thereafter, and who has exceeded the turnover threshold of AED 1 million in the period, must apply to register for Corporate Tax by March 31 of such subsequent Gregorian calendar year where the turnover exceeded the threshold limits.
A natural person who is a Non-Resident Person who conducts a Business or Business Activity during the Georgian calendar year 2024 and subsequent years, and whose turnover has exceeded the revenue threshold must apply to register for Corporate Tax within three months from the date of fulfilling the conditions set out to be a Taxable Person.
The Decision also alerts on the imposition of administrative penalties on those Taxable Persons who do not submit their applications for Corporate Tax registration within the timeframes specified in the FTA’s Decision for each segment of Taxable Persons, as stipulated in the Cabinet Decision No. 75 of 2023 on Administrative Penalties relating to the application of the Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses and its amendments.
Further legislation can be accessed at: https://tax.gov.ae/en/Legislation.aspx
Further Actions
All taxable persons are encouraged to register for the CT before the deadline in order to avoid non-compliance with the Taxation regime in UAE.
We at ATB Legal can help you with registering for the UAE Corporate Tax thereby ensuring you are in compliance with the regulations.
If you want to register for vat or corporate tax, ATB Legal helps with vat registration and corporate tax registration in the UAE.
