Corporate Tax Update: Deadline Extension for Shorter First Tax Periods

The Federal Tax Authority (FTA) has announced an important update for businesses with corporate tax periods shorter than one year. The deadline to file tax returns and settle any corporate tax payable has now been extended to December 31, 2024. This applies to businesses whose tax periods end on or before February 29, 2024.

This extension is designed to assist businesses established on or after June 1, 2023, whose financial year ends before February 29, 2024, resulting in a first tax period shorter than the usual 12 months. FTA Director General Khaled Ali Al Bustani highlighted that the move addresses challenges faced by such businesses, ensuring they have ample time to comply with tax requirements. He emphasized the FTA's commitment to creating a fair and supportive tax environment that promotes compliance without overburdening businesses.

This extension is part of FTA Decision No. 7 of 2024, under the Federal Decree Law No. 47 of 2022 on corporate taxation. The FTA urges all businesses to review the latest corporate tax laws and related decisions, which are available on the official FTA website.

Need assistance with corporate tax compliance? Markef Consulting LLC is here to help you navigate the latest tax regulations and ensure your business stays compliant. Reach out to us today for expert tax consultation at +971501054241.

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