Arabian Post Staff -Dubai
The Federal Tax Authority (FTA) has issued a public statement clarifying the registration deadlines for corporate taxpayers in the United Arab Emirates. This information comes after the May 31st deadline, which applied to many companies, has passed.
The clarification aims to ensure businesses understand their tax obligations and avoid any potential penalties. The FTA emphasized that corporate tax registration is mandatory for all businesses operating in the UAE, regardless of factors like Value Added Tax (VAT) registration status, turnover thresholds, geographical location within the UAE (mainland or free zone), or financial performance (profit or loss).
The registration timelines vary depending on the company’s establishment date. Businesses registered before March 1, 2024, had a deadline based on their trade license issuance date. Those established on or after March 1st, including free zone companies, must register within three months of incorporation.
For companies registered overseas but now managed and controlled within the UAE, the registration window is three months from the end of their financial year, provided this date fell after March 1st, 2024.
The FTA also addressed the situation for overseas companies operating in the UAE. Businesses in this category that began operations before March 1st, 2024, have a nine-month window to register for corporate tax, calculated from their start date in the Emirates. This deadline would have fallen in May 2024.
Overseas companies relocating to the UAE with operations commencing on or after March 1st, 2024, are required to register for corporate tax within six months.
The FTA advises businesses unsure about their registration requirements or deadlines to consult the authority’s website or contact them directly for assistance. The authority offers various resources and support channels to help companies navigate the corporate tax regime.
This clarification from the FTA comes after a period of increased focus on corporate tax compliance in the UAE. In May 2024, the authority reminded businesses that non-compliance could result in penalties of up to AED 10, 000 (approximately USD 2, 700).
By providing clear and accessible information on registration deadlines, the FTA aims to streamline the corporate tax process for businesses operating in the UAE. This will ensure a smooth transition into the new tax regime and promote tax compliance across the country.
Also published on Medium.
