UAE Corporate Tax - Timeline of Registration.

What is the news about Corporate Tax timeline?

On 26-02-2024 UAE Federal Tax Authority stipulated a timeline provision for Taxable Persons to Register in Corporate Tax. Additionally, late registration penalties scheme have been applied according to the deadline specified by authority thereof.

What is Taxable Person?

Taxable Definition encompasses both the Natural Person and the Juridical Person (resident or non-resident), who runs a business activity within UAE and generates a revenue which how FTA determined and specified.

What does timeline mean in Corporate Tax new Decision?

The Timeline of registering in Corporate Tax indicates the period of time which the taxable person is obligated to apply his documents to FTA Corporate Tax. Exceeding the deadline shall prone the Taxable Person to penalties and this timeline is calculated according to the year of incorporation or Trade License issuance (irrespective to the year of issuance).

How can I determine the deadline of registration for my company?

1. juridical person:

A juridical person that is a Resident Person, incorporated or otherwise established or recognised prior to the effective date of this Decision, shall submit the Tax Registration application, in accordance with the following table:

Juridical person who has established the business after the effective date of the Decision, shall apply his documents within three months of the date of incorporation.

2. Natural Person:

Natural Person who runs a business within UAE during 2024 and meets the threshold and standards of being subjected to UAE Corporate Tax, must register until the subsequent 31 March.

If the natural person is conducting a business within UAE, and he is non-resident, he is required to register within three months of the date he meets the requirements of being subject to CT.

In summary, Corporate Tax remains being updated with new regulations and rules to control the application, encompassing more ways to encourage taxable persons to register and comply to evade the risk of being penalized.

For specific personalized information about your company, reach out via linkedin or my phone: +971 54 733 9710.

Majd Kousa, on 01-03-2024. Senior Accountant of IBS consultancy.