The Federal Tax Authority (FTA) has recently announced a pivotal article that marks a substantial development in the tax registration process for juridical entities within the jurisdiction.
This announcement is not just a procedural update; it’s a reflection of the evolving tax landscape and our collective responsibility toward ensuring compliance and transparency in our financial activities. Before we delve into the details and implications of this article, let’s take a moment to understand the context and importance of this update from the FTA.
Pursuant to the recent publication, comprehensive clarity has been provided concerning the registration timelines for various entities, including Resident Juridical Persons, Non-Resident Juridical Persons, and Natural Persons. This delineation of specific timelines marks a significant advancement in our understanding and implementation of the regulatory framework.
This update is crucial for stakeholders to align their operations with legal requirements, minimizing risks and ensuring preparedness to meet registration obligations within specified timelines.
The Ministry announced the issuance of Cabinet Decision No. 10 of 2024, introducing amendments to the schedule of violations and administrative penalties related to the taxation of corporations and businesses.
The decision, effective March 1, 2024, specifically addresses the late registration of UAE Corporate Tax.
As per the updated regulations, businesses failing to submit their Corporate Tax registration applications within the timelines specified by the Federal Tax Authority will be subject to an administrative penalty of Dh10,000.
A Juridical Person Who Is a Resident Person, Who Has Been Incorporated, Established, or Recognized Before the Enactment of This Decision, Is Required to Apply for Tax Registration, as Detailed in the Table Below:
| DATE OF LICENCE ISSUANCE IRRESPECTIVE OF YEAR OF ISSUANCE | DEADLINE FOR SUBMITTING A TAX REGISTRATION APPLICATION |
| 1 January – 28/29 February | 31 May 2024 |
| 1 March – 30 April | 30 June 2024 |
| 1 May – 31 May | 31 July 2024 |
| 1 June – 30 June | 31 August 2024 |
| 1 July – 31 July | 30 September 2024 |
| 1 August – 30 September | 31 October 2024 |
| 1 October – 30 November | 30 November 2024 |
| 1 December – 31 December | 31 December 2024 |
| Where a person does not have a Licence at the effective date of this Decision | (3) three months from the effective date of this Decision |
A juridical person that is a Resident Person incorporated or otherwise established or recognized on or after the effective date of this Decision, shall submit a Tax Registration application, in accordance with the following table:
| CATEGORY OF JURIDICAL PERSONS | DEADLINE FOR SUBMITTING A TAX REGISTRATION APPLICATION |
| A person that is incorporated or otherwise established or recognized under the applicable legislation in the State, including a Free Zone Person | (3) three months from the date of incorporation, establishment, or recognition |
A person that is incorporated or otherwise established or recognized under the applicable legislation of a foreign jurisdiction i.e. effectively managed and controlled in the State | (3) three months from the end of the Financial Year of the person |
A juridical person, that is a Non-Resident Person prior to the effective date of this Decision, shall submit a Tax Registration application in accordance with the following table:
CATEGORY OF JURIDICAL PERSONS | DEADLINE FOR SUBMITTING A TAX REGISTRATION APPLICATION |
A person that has a Permanent Establishment in the State | (9) nine months from the date of existence of the Permanent Establishment |
A person who has a nexus in the State | (3) three months from the effective date of this Decision |
A juridical person, that is a Non-Resident Person on or after the effective date of this Decision, shall submit a Tax Registration application in accordance with the following table:
CATEGORY OF JURIDICAL PERSONS | DEADLINE FOR SUBMITTING A TAX REGISTRATION APPLICATION |
A person that has a Permanent Establishment in the State | (6) six months from the date of existence of the Permanent Establishment |
A person who has a nexus in the State | (3) three months from the date of establishment of the nexus |
A juridical person, that is a Non-Resident Person on or after the effective date of this Decision, shall submit a Tax Registration application in accordance with the following table:
|
CATEGORY OF NATURAL PERSONS |
DEADLINE FOR SUBMITTING A TAX REGISTRATION APPLICATION |
|
A Resident Person who is conducting a Business or Business Activity during the 2024 Gregorian calendar year or subsequent years whose total Turnover derived in a Gregorian calendar year exceeds the threshold specified in the relevant tax legislation. |
31st March of the subsequent Gregorian calendar year. |
|
A Non-Resident Person who is conducting a Business or Business Activity during the 2024 Gregorian calendar year or subsequent years whose total Turnover derived in a Gregorian calendar year exceeds the threshold specified in the relevant tax legislation. |
(3) three months from the date of meeting the requirements of being subject to tax. |
Action to be taken by the businesses
Businesses are advised to reassess their existing tax registration status and take the essential measures to comply with the latest requirements, which includes verifying the issuance month of their Trade License. Our team is ready to support you in navigating these modifications and facilitating a seamless transition.
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