UAE Corporate Tax Registration Deadline - Update from Tax Authority FTA

Learn the latest information about UAE Corporate Tax Registration Deadline - Update from Tax Authority FTA.

The Federal Tax Authority announced an important decision on February 27, 2024.

Previously, while it was stated that all taxable persons must register before submitting their first corporate tax return, no clear deadline was set. As a result, it appears many company representatives have not yet begun registration processes. However, this new decision requires significant acceleration of registration activities.

Understanding the key changes is essential for compliance.

After Reading This Article…

• Understand the newly announced UAE corporate tax registration deadline

• Understand registration obligations for non-resident entities (branches and representative offices)

• Understand penalties for late corporate tax registration

Registration Deadline Details

All companies holding licenses in UAE must register. There has been notification of changes to registration deadlines.

A key characteristic of the registration deadline is that each company must register according to the month their license was issued. Registration deadlines vary based on license issuance month.

For example, if a company's license was issued in January or February 2024, regardless of the license issuance year, the taxable person must submit a corporate tax registration application to the tax authority by March 31, 2024.

Additionally, for entities established on or after January 1, 2024, under applicable UAE law (including those in Free Zones), corporate tax registration applications must be submitted within three months of establishment.

Non-Resident Entities Under Tax Law (Branches and Representative Offices)

Currently, non-resident entities under tax law (branches, representative offices, etc.) that have established a Permanent Establishment (PE) in UAE must register within nine months from the date the PE was established.

As a result, branches and representative offices with PE status must register urgently. For enterprises without PE assessment, we recommend early action. Please refer to the article on Permanent Establishment (PE) for additional information.

Individual Business Owners and Freelancers

UAE residents engaged in business activities whose revenue exceeds the thresholds specified by tax law (1 million AED) must submit corporate tax registration applications by March 31, 2025.

Key Considerations if Missing the Deadline

Companies that delay corporate tax registration in UAE face an administrative penalty of 10,000 AED.

To avoid this penalty and ensure compliance, register early without delay.

Summary

All companies must note that the registration deadline has been accelerated. To reduce penalty risk, prompt action to address registration requirements is important.

If you have questions about corporate tax registration procedures or wish to request registration assistance, please feel free to contact us.

For information related to the FTA announcement, please refer to the official documentation.

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