UAE announces deadlines and penalties for Corporate Tax registrations

The Ministry of Finance has outlined deadlines for businesses to submit their corporate tax registration applications in the UAE, with the Federal Tax Authority (FTA) setting effective dates starting on March 1, 2024.

Failure to adhere to these deadlines may result in an administrative penalty of Dh10,000. Here's a comprehensive overview of the new registration timelines:

For resident juridical persons (organizations) established before March 1, 2024, registration deadlines are structured according to the month of incorporation, regardless of the year. These deadlines range from May 31 for businesses incorporated in January or February to December 31 for those incorporated in December. The FTA specifies that entities without a license by March 1, 2024, must apply for registration within three months, by May 31, 2024.

For resident juridical persons established after March 1, 2024, the registration deadline is typically three months from the date of incorporation. This applies to entities incorporated or recognized under UAE laws or foreign jurisdictions.

Non-resident juridical persons with a permanent establishment in the UAE prior to March 1, 2024, have nine months from the date of existence to register, while those with a nexus in the UAE must register by May 31. Non-resident juridical persons established after March 1, 2024, have six months from the date of existence or until May 31, depending on their circumstances.

For natural persons (individuals operating in their personal capacity), resident individuals with a turnover exceeding Dh1 million must register by March 31 of the subsequent year. Non-resident natural persons must register within three months of meeting the tax requirements.

Administrative penalties will be levied on taxable persons failing to submit their corporate tax registration applications within the specified timeframes. Arun Gurung, regional finance director at Sovereign Corporate Services Dubai, emphasizes the importance of businesses carefully considering these updates to ensure compliance and avoid penalties.

Read also: UAE launches six types of non-work residency visas for expats

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