UAE Corporate Tax Registration Deadline is Released
Resident Person, Non-Resident Person, and Natural Person
The Federal Tax Authority (FTA) on 22nd February 2024 has released Decision No. 3 of 2024, outlining the crucial timeline for registering for UAE Corporate Tax. This decision, which comes into effect on March 1st, 2024, carries significant implications for businesses operating in the UAE.
UAE Corporate Tax Registration Timeline for Resident Person
For resident persons, the deadline for UAE Corporate Tax Registration varies based on the issuance date of their license. Companies with licenses issued in January or February must register by May 31st, 2024. Subsequent deadlines follow, with the final deadline for companies incorporated after March 1st, 2024, set at three months from their date of incorporation.
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License Issue Month
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Deadline
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January
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31 May 2024
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February
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31 May 2024
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March
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30 June 2024
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April
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30 June 2024
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May
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31 July 2024
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June
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31 August 2024
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July
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30 September 2024
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August
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31 October 2024
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September
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31 October 2024
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October
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30 November 2024
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November
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30 November 2024
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December
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31 December 2024
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Companies incorporated after 1st March 2024
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3 months from date of incorporation
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UAE Corporate Tax Registration Timeline for Non-Resident Person
Non-resident persons, including those with a Permanent Establishment (PE) or nexus in the UAE, face different timelines. For entities with a PE, whether established before or after March 1st, 2024, registration must occur within nine months of the PE's existence. Similarly, for those with a nexus in the UAE, registration is required within three months of its establishment.
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Category
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Timeline
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Non-resident Person that has a Permanent Establishment in the State
- Non-Resident person on or after 1st March 2024
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(9) nine months from the date of existence of the Permanent Establishment
(6) six months from the date of existence of the Permanent Establishment
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A person who has a nexus in the State
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(3) three months from the date of establishment of the nexus
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UAE Corporate Tax Registration Timeline for Natural Person
Natural persons conducting business activities with turnovers exceeding AED 1 million have their deadlines. Resident individuals must register by March 31st of the subsequent Gregorian calendar year, while non-residents meeting the same criteria must register within three months of meeting the tax requirements.
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Category
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Timeline
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A resident person conducting Business or Business Activity during the year 2024 or subsequent years with a total Turnover of more than AED 1 million
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31 March of the subsequent Gregorian calendar year
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Non - Resident person conducting Business or Business Activity during the year 2024 or subsequent years with a total Turnover of more than AED 1 million
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(3) three months from the date of meeting the requirements of being subject to tax
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Penalty for not registering for UAE Corporate Tax
Non-compliance with these UAE Corporate Tax Registration deadlines carries a penalty of AED 10,000. Therefore, it mandates the businesses and individuals to adhere to the specified timelines to avoid financial penalties.
For support with UAE Corporate Tax registration or Corporate Tax Impact Assessment for first time adoption, you can contact tax@emiratesca.com or reach out via WhatsApp at +971 50 528 2838.
These deadlines underscore the UAE's commitment to enforcing tax regulations and ensuring compliance among businesses and individuals operating within its jurisdiction. By implementing clear timelines, the FTA aims to streamline the UAE Corporate Tax Registration process, enhance tax transparency, and boost the UAE’s fiscal framework.
Non-resident entities, especially those with Permanent Establishment or nexus in the UAE, must assess their tax obligations promptly. Understanding the implications of these regulations and acting swiftly can help mitigate risks and ensure smooth operations in the UAE business scenario.
Similarly, natural persons engaged in business activities must be vigilant about meeting tax requirements and registering within the stipulated timelines. Whether resident or non-resident, tax compliance is essential to avoid penalties and legal consequences.
In conclusion, the release of the deadline for UAE Corporate Tax registration by the FTA marks a significant milestone in the UAE's tax regime. Businesses and individuals must familiarize themselves with these timelines, assess their tax obligations, and take proactive steps to ensure compliance.
