Key insights for meeting the UAE corporate tax registration deadline

The UAE Federal Tax Authority (FTA) has recently issued Decision No. 3 of 2024, establishing a deadline for both taxable and certain exempt persons to register for corporate tax. This directive becomes effective starting March 1, 2024. Registration deadlines will vary based on the entity’s residency, classification, and either the date of incorporation or the commencement of business activities.

Let us cover different types of entities and their particulars regarding registration for corporate tax in the UAE in 2024.

Concerned entities for corporate tax registration deadline

This section outlines the entities concerned with the UAE Corporate Tax Registration Deadline, clarifying the requirements based on entity type:

  • Resident Juridical Persons: Specifics on registration deadlines based on incorporation and license issuance.
  • Non-Resident Juridical Persons: Details for non-resident entities conducting business in the UAE.
  • Natural Person: Information for individual entrepreneurs and business owners regarding tax registration.

Resident Juridical Persons

For UAE resident juridical persons, the corporate tax registration submission deadline varies by the type of juridical person, their date of incorporation, and the issuance date of their trade license. The first such deadline is set for May 31, 2024. 

This structured timeline ensures a systematic approach for entities to comply with the new tax regulations.

UAE resident entities incorporated/established before March 1, 2024

  • January or February Issuance: Deadline by May 31, 2024.
  • March or April Issuance: Deadline by June 30, 2024.
  • May Issuance: Deadline by July 31, 2024.
  • June Issuance: Deadline by August 31, 2024.
  • July Issuance: Deadline by September 30, 2024.
  • August or September Issuance: Deadline by October 31, 2024.
  • October or November Issuance: Deadline by November 30, 2024.
  • December Issuance: Deadline by December 31, 2024.
  • Without a License at Effective Date: 3 months from FTA Decision effective date (by May 31, 2024).

UAE resident entities incorporated/established on or after March 1, 2024

  • Deadline for Submission: 3 months from the date of incorporation, establishment, or recognition.

(Applied to all persons incorporated, established, or recognised under UAE law, including free zones, as well as those under laws of foreign jurisdiction effectively managed and controlled in the UAE)

Non-Resident Juridical Persons

Non-resident juridical persons with a permanent establishment in the UAE or a significant economic presence are obligated under the UAE Corporate Tax Law to register for corporate tax. The deadlines for these entities to submit their corporate tax registration applications are systematically defined to ensure timely compliance.

Juridical persons with a Permanent Establishment (PE) in the UAE

  • Incorporated before March 1, 2024: Registration deadline is 9 months from the PE’s date of existence.
  • Incorporated on or after March 1, 2024: Registration deadline is 6 months from the PE’s date of existence.

Juridical Persons with a Nexus in the UAE

  • For all establishment of nexus before March 2024: Registration deadline is 3 months from the effective date of the FTA decision.
  • For all establishment of nexus on/ or March 2024: Registration deadline is 3 months from the date of establishing the nexus

Natural Person

A natural person engaged in business activities within the UAE must adhere to specific timelines for submitting their corporate tax registration application. This structured process ensures compliance with the UAE’s tax regulations.

Resident Natural Persons

  • Criteria: Conducting business during the 2024 Gregorian calendar year or later, with total annual turnover exceeding the prescribed threshold.
  • Deadline: March 31 of the subsequent Gregorian calendar year.

Non-Resident Natural Persons

  • Criteria: Conducting business during the 2024 Gregorian calendar year or later, with total annual turnover exceeding the prescribed threshold.
  • Deadline: Within 3 months of meeting the tax liability criteria.

Consequences of missing the corporate tax registration deadline in the UAE

If an entity does not meet the stipulated corporate tax registration deadlines, it will face an administrative penalty. As per Cabinet Decision No. 75 of 2023, failing to register on time results in a penalty of AED 10,000, emphasising the importance of timely compliance with tax registration requirements.

The next step

All businesses must accurately identify their specific corporate tax registration deadlines to ensure compliance with the UAE Corporate Tax Law. It is crucial to submit the registration application within the designated timeframe. Additionally, businesses should evaluate how corporate tax affects their operations and check for any applicable exemptions or reliefs. This evaluation is essential if it has not been conducted previously, to fully prepare for the tax implications.

How can Davidson & Co. assist you in corporate tax registration?

As we conclude this discussion on the significance of timely compliance with the UAE Corporate Tax Law, Davidson & Co. stands ready to assist your business in navigating the complexities of tax registration. Ensuring that your organisation meets the registration deadline without discrepancies is our priority. Connect with us at Davidson & Co., and let our experts help you register seamlessly, securing compliance and peace of mind.

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