A Clear Guide to UAE Corporate Tax Registration
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As the UAE prepares to implement its new corporate tax regime, the Federal Tax Authority (FTA) has issued important clarifications on the registration timelines for corporate taxpayers. This article aims to provide a concise overview of the key highlights to help businesses ensure timely compliance.
The FTA has emphasized that all taxable persons must submit their corporate tax registration application by the specified deadlines to avoid administrative penalties of AED 10,000. The timelines vary depending on the category of the corporate entity:
1. Corporates Established Before March 1, 2024:
-??If the company holds a valid license as of March 1, 2024, the registration deadline is based on the month of the license issuance.
-??If the company's license is expired as of March 1, 2024, the deadline is still determined by the original license issuance month.
-??For companies without a license as of March 1, 2024, the deadline is May 31, 2024.
2. Corporates Established On or After March 1, 2024:
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-??These entities must submit their tax registration application within 3 months from the date of incorporation, establishment, or recognition.
-??Foreign entities managed and controlled in the UAE must also apply within 3 months from the end of their financial year.
3. Non-Resident Corporates with a UAE Permanent Establishment:
-??These entities must submit their tax registration application within 9 months from the date of the permanent establishment's existence.
The FTA has also clarified the registration requirements for corporates seeking exemptions under the Corporate Tax Law, though the timeline for applying for exemptions remains unchanged.
It is crucial for all affected corporates to review the FTA's clarification and ensure timely submission of their corporate tax registration applications to avoid any penalties and ensure compliance with the new tax regime. By adhering to the specified deadlines, businesses can navigate the transition smoothly and focus on their core operations.