UAE: New Corporate Tax Registration Deadline

The Federal Tax Authority (FTA) issued Decision No. 3 of 2024 on 22 February 2024, outlining the schedule for the registration of taxable individuals for Corporate Tax (CT).

As per Article 51 of the UAE CT Law, any Taxable Person is required to register for CT with the FTA within a specified timeframe and obtain a Tax Registration Number. The FTA Decision No. 3 of 2024 now provides the prescribed timeline for this registration process.

Key Highlights

Timeline for the Tax Registration of Resident Juridical Persons

1. For juridical persons classified as Resident Persons, incorporated, established, or recognized before the effective date of this Decision (i.e., 1 March 2024), the submission of the Tax Registration application should adhere to the following timelines:

2. The FTA associates the timeline for Tax Registration with the issuance date of the License. According to the UAE CT Law, the license is an official document issued by a Licensing Authority that permits the conduct of a Business or Business Activity in the UAE, such as trade and commercial licenses. In cases where a juridical person holds multiple licenses, the license with the earliest issuance date takes precedence.

3. For resident juridical persons established, incorporated, or recognized on or after 1 March 2024, the following registration timelines are applicable:

Timeline for the Tax Registration of Non-Resident Juridical Persons

Non-resident juridical persons are required to adhere to the following schedule for submitting the Tax Registration application:

Timeline for Tax Registration of Natural Persons

The Decision specifies that an individual engaged in a Business or Business Activity in the UAE and surpassing the AED 1 million threshold is required to submit a Tax Registration application within the following timeframes:

• For a Resident Person: By 31 March of the subsequent Gregorian calendar year in which the Business or Business Activities occurred.

• For a Non-Resident Person: Within three months from the date of meeting the criteria for being subject to tax.

Penalties for Delayed Tax Registration

Cabinet Decision No.75 has been revised to incorporate penalties for the failure to submit a Tax Registration application within the stipulated time frames. The penalty for such non-compliance will be AED 10,000 per Taxable Person.

Key Takeaways:

• The recent FTA Decision clarifies the registration process for the UAE Corporate Tax (CT) regime, specifying the deadline for submitting the registration application, not the acquisition of the registration number.

• Taxpayers must ensure the proper uploading and acceptance of a valid License on the EmaraTax (FTA) portal before commencing the registration application.

• While unintended, there may be instances where a Non-Resident Juridical Person, existing as of March 1, 2024, and following a July–June financial year, could have a submission deadline of March 31, 2024 (i.e., 9 months from July 1, 2023).

• The deadline for tax group registration remains unchanged.

Next Steps:

• All Taxable Persons should identify their specific deadlines for submitting the CT registration application to ensure compliance and avoid penalties.

• Resident Juridical Persons with multiple establishments or Licenses should refer to the License with the earliest issuance date to determine their applicable due date.

The EmaraTax (FTA) portal for CT registration is now open to all individuals.

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