The Federal Tax Authority (FTA) in the United Arab Emirates (UAE) has issued a decision about new registration deadlines, detailing the timelines for Corporate Income Tax (CIT) registration for taxable persons. The firstcomers, who were established in January or February, got 3 months till the end of May and the others will follow. The timeline for registration depends on the date of issuance of the license, irrespective of the year of issuance, as follows:
- If the license was issued in January or February, the registration deadline is 31 May 2024
- If the license was issued in March or April, the registration deadline is 30 June 2024
- If the license was issued in May, the registration deadline is 31 July 2024
- If the license was issued in June, the registration deadline is 31 August 2024
- If the license was issued in July, the registration deadline is 30 September 2024
- If the license was issued in August or September, the registration deadline is 31 October 2024
- If the license was issued in October or November, the registration deadline is 30 November 2024
- If the license was issued in December, the registration deadline is 31 December 2024
Those who are established after 1st March 2024 have 3 months for registration.
Implications of Missing Deadlines
Failing to meet these Corporate Income Tax registration deadlines will result in a fine of AED 10,000 as stipulated by the Penalty Decision. It’s crucial for all companies operating in the UAE to comply with these new requirements to avoid penalties and ensure smooth business operations.
Rationale for Changes
The revised deadlines are intended to prevent a last-minute rush of registrations that could overwhelm the FTA’s administrative capacity. By spreading out the Corporate Income Tax registration deadlines throughout 2024, the FTA aims to better manage its workload and focus on processing tax filings effectively from January 1, 2025. This proactive approach is designed to facilitate smoother operations for both the FTA and businesses, allowing them to comply with tax regulations without facing significant fines or last-minute pressures.
Background
According to Article (51) of the UAE Corporate Tax Law, taxable persons must register with the FTA in the prescribed form and manner, and within the timeline specified by the FTA, to obtain a Tax Registration Number. While taxable persons were previously encouraged to register for Corporate Income Tax as soon as they became aware that they would fall within the scope of the regime, there was no strict timeline for Corporate Income Tax registration, except for the requirement to submit a request to form a tax group before the end of the relevant tax period.