The recently enacted UAE Corporate Income Tax Law became effective on June 1, 2023, applying to companies in the UAE, individuals conducting business within the country, and international entities with either a Permanent Establishment or management and control within the UAE.
The Federal Tax Authority (FTA) has delineated the schedule for the Registration of Taxable Persons for UAE Corporate Tax, starting from March 1, 2024, as per the official timeline announced. This schedule is essential for ensuring compliance and is detailed as follows:
UAE CORPORATE INCOME TAX – REGISTRATION TIMELINE
THE FEDERAL TAX AUTHORITY (FTA) TIMELINE:
Effective from March 1, 2024, the FTA has set out specific deadlines for Tax Registration application submission, according to the FTA decision No. 3 of 2024:
RESIDENT JURIDICAL PERSONS:
For entities incorporated, established, or recognized before March 1, 2024:
•A staggered timeline based on the earliest license issuance date ranges from May 31 to December 31, 2024.
•If no license is held by the effective date, the deadline is three months from this decision’s effective date.
For entities recognized on or after March 1, 2024:
•Resident Juridical Persons, including Free Zone entities, have three months from incorporation, establishment, or recognition.
•Foreign juridical entities, effectively managed and controlled within the State, havethree months from the end of their financial year.
NON-RESIDENT JURIDICAL PERSONS:
Pre-March 1, 2024 establishments must submit their registration:
•Nine months from establishing a Permanent Establishment in the State.
•Three months from this decision's effective date if they have a nexus in the UAE.
Post-March 1, 2024, establishments:
•Six months from the establishment of a Permanent Establishment.
•Three months from establishing a nexus in the State.
NATURAL PERSONS:
•Residents engaging in business activities exceeding a turnover of AED 1 million duringthe 2024 calendar year or after must register by March 31 of the subsequent year.
•Non-Resident persons meeting the same criteria must register within three months ofbecoming subject to tax.
PENALTIES: Failure to adhere to these timelines will incur penalties of AED 10,000.
WHAT YOU NEED TO DO: Taxable persons must register by the set deadlines for UAE Corporate Income Tax via the FTA’s ‘EmaraTax’ portal and obtain a Corporate Tax registration number.
If you require our assistance, please contact your usual A.C.T. representative.
For comprehensive details, including the full schedule based on the type of juridical person and specific dates, consult the official documents or contact our team for personalized assistance.
Contacts
If you require assistance in relation to the above and/or would like to discuss anything further, please do not hesitate to contact info@act.london or your usual ACT contact.