UAE Corporate Tax Registration Deadlines for 2024

This article analyzes the various corporate tax registration deadlines specified in Federal Tax Authority Decision No. 3 of 2024 in detail. It discusses the timeline for resident and non-resident companies as well as individuals. The implications of late registration are also highlighted. Thus, for Taxable Persons to effectively meet corporate tax registration deadlines and to ensure compliance, it is advisable to avail of the expert services of top Tax Consultants in UAE.

Timeline for Resident Corporates

The first category covered under the timeline is resident juridical persons, which refers to companies incorporated or registered in the UAE under local laws. For these entities, the deadline to submit a tax registration application depends on the month and year of issuance of their commercial license.

• By Commercial License Date

Companies incorporated before March 1, 2024, must register for tax based on the date printed on their commercial license (also called trade license). Table 1 below shows the registration deadline for resident companies falling under each license issuance month in 2024:

Table 1: Tax Registration Deadlines for Resident Companies by License Date

• By Date of Incorporation

Resident corporations incorporated or recognized under UAE laws on or after March 1, 2024 have 3 months from their date of establishment to complete tax registration. This applies to companies set up across all business activities and free zones.

Read More: A Comprehensive Guide to Corporate Tax Registration in UAE

Timeline for Non-Resident Corporates

Any juridical person not incorporated in the UAE is considered a non-resident for corporate tax purposes. The key deadlines are:

• Companies Meeting Permanent Establishment Criteria

Companies permanently established in the UAE need to register within 9 months of establishing presence or 6 months from March 1, 2024, whichever comes later.

A company that has a fixed or permanent place in the UAE through which a Non-Resident person wholly or partly conducts business activities

• Companies Meeting Nexus Criteria

Companies meeting the nexus criteria but without permanent establishments have 3 months from the decision date to register.

Nexus is established if non-resident business revenues from UAE-based digital services, goods or other transactions exceed an annual revenue threshold of AED 375,000.

• Post Decision Incorporations

For non-resident companies establishing a UAE nexus or PE after March 1, 2024, the registration period is 3 months and 6 months respectively from date of meeting tax criteria.

Timeline for Natural Persons

The corporate tax system also applies to individual proprietorships and partnerships conducting commercial activities exceeding a minimum turnover threshold as self-employed persons. Key registration deadlines are:

1. Individuals exceeding AED 375,000 annual turnover in 2024 must register by March 31, 2025.
2. Individuals commencing business any time in 2024 or beyond have 3 months from establishing taxable presence to complete registration.

Late Registration Penalties

Failure to meet the prescribed timelines can attract fines as high as AED 10,000 of outstanding tax due under the penalties framework issued by the Cabinet. Late registration may also result in blocked services from government agencies and regulators until all taxes are paid.

The FTA has mandated strict compliance with the registration deadlines to enable efficient tax filings and revenue collections from the first year of implementation. Any forms of non-compliance or delay may severely disrupt a company's UAE business license or services.

Extensions and Special Cases

In certain circumstances, the FTA may consider granting extensions to the above standard timelines on written request supported by sufficient cause. For example, companies undergoing mergers, acquisitions or restructuring activities near the deadline may qualify.

Companies registered as tax exempt under the free zone or other regulations also require an exception approval from the Ministry of Finance to be excluded from tax registration. Startups and SMEs below certain turnover levels can avail incentives like tax rebates or exemptions.

FAQs on Corporate Tax Registration

Q1. What information is required for tax registration?

The registration form requires basic details like trade name, activities, owner details, financial particulars and contact information. Supporting documents like commercial licenses, and articles of association may need to be provided.

Q2. How long does the registration process take?

In most routine cases without complexities, the online registration takes 1-2 business days for approval on submission of complete information before the deadline. Approvals may take longer during peak workload periods.

Q3. Can the deadline be extended due to some issue?

Businesses facing genuine problems in meeting deadlines due to document delays, system errors, etc. can write to the FTA requesting an extension. Valid reasons with supporting proof will be considered on a case-to-case basis.

Q4. What happens if a company misses the registration deadline?

Missing the deadline can result in late fees of AED10,000. Critical services may also be disrupted until all arrears are cleared. It is advisable to plan registration well in advance.

Q5. How soon after registration do tax compliances begin?

Once registration is approved, the business must begin maintaining proper books of accounts and tax records from the first day of the financial year for filing annual tax returns and GST returns as applicable. The initial return filing deadlines are also provided.

Conclusion

The corporate tax regime introduced in the UAE aims to boost compliance among businesses and generate non-oil revenues for funding infrastructure projects and economic growth initiatives. Timely registration as per the outlined deadlines in FTA Decision No. 3 of 2024 is crucial for enabling efficient tax administration and avoiding penalties. It is recommended businesses across industries understand their category and plan registrations well in advance to avoid last-minute troubles. The UAE tax authority has developed robust but simple systems to facilitate smooth and prompt compliance by all taxpayers.

Read More: Top Corporate Tax Consultants in Dubai