New deadlines for corporate tax registration in the UAE: essential information for companies

The UAE government has set new deadlines for companies to register for corporation tax, starting March 1. Failure to comply with these deadlines could result in fines of up to 10,000 dirhams ($2,722). Companies must know and follow these new rules.

Understand the new tax deadlines

According to the recent announcement by the Federal Tax Authority (FTA), companies based in the UAE before March 1 must follow certain deadlines this year to register for corporate tax. The deadline depends on when the company’s license was issued. For example, if a company obtained its license in January or February, it must submit its tax registration by May 31 to avoid penalties. Additionally, if a company has multiple licenses, it must follow the deadline of the license issued first.

Highlights of Decision No. 3 of the 2024 FTA

FTA Decision No. 3 of 2024 establishes the schedule for corporate tax registration for taxpayers, highlighting the importance of promptly complying with registration requirements. For resident legal entities established before March 1, 2024, the application for tax registration must be submitted within three months following the effective date of Decision No. 3 of 2024. Non-resident legal entities and natural persons Those conducting business above a certain threshold also have specific rights. deadlines depending on your circumstances. Failure to submit the tax registration application on time may result in penalties of Dh10,000 per taxable person, as described in Cabinet Decision No. 75.

Next steps:

1. Evaluate categorization: Companies should evaluate their categorization to determine the relevant deadline for submitting their tax registration applications. This step is crucial to avoid possible sanctions.
2. Ensure timely compliance: Companies must comply with registration requirements promptly to maintain regulatory compliance. This proactive approach helps mitigate the financial risks associated with non-compliance.
3. Stay informed and proactive: As the UAE refines its tax framework, businesses should stay informed on regulatory updates and be proactive in meeting their tax obligations. This commitment supports the nation’s economic objectives and contributes to a favorable business environment.

By following these steps, businesses can navigate the tax registration process effectively and contribute to the continued economic development of the UAE.

News source: Gulf Business