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Act Fast: Corporate Tax Registration Deadlines in the UAE

New FTA Update Establishes Precise Timelines Aligned with Businesses’ Licensing Month

UAE businesses are urged to prioritize corporate tax registration without delay, as highlighted by recent updates from the UAE Ministry of Finance. The new guidelines establish specific timelines aligned with each company’s licensing month.

For instance, if a company received its license in January, it must complete corporate tax registration by the end of May, according to the Ministry’s latest announcement. This reinforces the need for prompt action, discouraging a lax approach among companies.

Similarly, businesses licensed in June must register by August 31, 2024, while those with licenses issued in December have until December 31, 2024, to complete registration.

Auditors and accountants, emphasized that the registration deadline now hinges on the company’s license issue date. Non-compliance will incur a penalty of Dh10,000, aligning with fines imposed for late VAT and Excise Duty registration.

Following the UAE’s announcement of a 9 per cent corporate tax implementation, registrations officially opened on June 1, 2023. Since then, many large enterprises have efficiently completed their paperwork. However, feedback from the market indicates that several mid- to smaller-sized companies are still navigating through the initial regulatory processes.

Existing companies must refer to their license issue date and ensure registration within the specified timelines. For example, an entity with a license issue date in January must apply no later than May 31, 2024.

For example, “Taxable individuals holding licenses issued in January and February, regardless of the year of issuance, must submit their corporate tax registration applications by May 31, 2024, to avoid violating tax laws.”

If an entity lacks a license by the effective date of March 1, 2024, they must register within three months, by May 31, 2024.

In cases where a taxable entity possesses multiple licenses, such as a business group with subsidiaries, the registration deadline is determined based on the previously issued license, establishing the maximum timeframe for submitting the corporate tax registration application.

UAE Corporate Tax Registration Deadlines

Clock clearly is ticking

 “Regardless of the year of incorporation, taxpayers must submit their registration application within 30 to 90 days, depending on the month their license was issued. New companies are required to complete the application within 3 months.”

“Many businesses have been lax in prioritizing registration. They seek assessments and general advice before proceeding with registration to prevent penalties for incorrect registrations, such as being classified as individuals or tax groups, or even facing a single registration.”

Sharpen Your Focus on Deadlines

Once more, the recent clarification from the UAE tax authority regarding deadlines will undoubtedly sharpen the focus of business owners to ensure all necessary details are promptly addressed. There can be no room for complacency any longer.

Moreover, as long as the provided details are accurate, the entire registration process is conducted online without any significant difficulties.

What about sole proprietorships or individual businesses ?

For UAE residents operating businesses and surpassing the turnover threshold outlined in tax legislation, registration for corporate tax must be completed by March 31, 2025. Similarly, non-residents exceeding the turnover threshold must register within 3 months from fulfilling the conditions to become a Taxable Person.

Furthermore, administrative penalties will be imposed on individuals failing to submit their registration applications within the specified timeframes outlined in the FTA’s decision for each category of taxable persons.

Looking for Corporate Tax Registration in Dubai, UAE

Tax departments based in-house in companies often face challenges in keeping up with constantly changing requirements. However, with ALYA’s Corporate Tax services in the UAE, our experienced professionals can ensure a smooth and seamless transition to the new CT regime. This way, your team’s burden is lessened. Additionally, our corporate tax teams are actively engaged in conducting tax impact assessments, transfer pricing reviews, cross-border transaction reviews, and planning operational implementations for several businesses in the UAE. For Corporate Tax Registration in the UAE call us +971 52 4754007 

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