The UAE Federal Tax Authority (FTA) has announced it will establish specified timeframes for taxable persons subject to corporate tax to apply to register with the FTA and avoid violating tax laws.
Companies that fail to register within the timeframe will face fines of Dh10,000 ($2,700).
The penalty was implemented to prompt taxpayer compliance with tax laws. The earliest deadline, which will depend on the month the license was obtained, will be on May 31, 2024, and it will apply to those with licences received in January or February.
The rest of the deadlines are as follows:
The FTA stressed the importance of submitting corporate tax registration applications by the given timeframes.
It added that taxable persons with licenses issued in January and February regardless of the year the license was issued, must submit their corporate tax registration applications no later than May 31, 2024, to avoid tax law violations.
If a juridical person does not have a license by March 1, 2024, they must apply to register within three months. Meanwhile, if the juridical person holds multiple licenses, the deadline to apply for registration is based on the prior issued license.
The FTA clarified that a juridical person who is a resident person incorporated, established, or otherwise recognised under the applicable laws of another country or foreign jurisdiction and effectively managed and controlled in the UAE on or after March 1 2024 must apply to register for corporate tax within three months from the end of their financial year.
The FTA noted that a juridical person who is a non-resident person who has a permanent establishment in the UAE before March 1, 2024, must apply to register for corporate tax within nine months from the date of the existence of the permanent establishment in the UAE. Meanwhile, a juridical person who is a non-resident Person with a nexus in the country must apply to register by May 31, 2024.
A juridical person who is a non-resident person on or after March 1, 2024, and has a permanent establishment is required to apply to register for corporate tax within six months of the existence of the permanent establishment in the UAE.
Under the terms of the decision, a natural person who is a resident person who conducts a business or business activity during the Georgian calendar year 2024, and who has exceeded the turnover threshold specified in the relevant tax legislation, must apply to register for corporate tax by March 31 of the following Gregorian calendar year.
The Federal Tax Authority has called on all stakeholders involved in implementing the Corporate Tax Law to review the law, along with all relevant guidelines and manuals published on the FTA’s website.
