The UAE Federal Tax Authority (FTA) issueԁ Deсision No. 3 of 2024 on the 27th of February this year in regard to the corporate tax deadlines for taxable entities operating in the region.
The deadline for each entity, according to this decree, is contingent upon the date of their license issuance. The law also stated the first registration of the corporate tax to be submitted before 31 May 2024.
The new legislation comes into effect on March 1 and the deadlines will apply differently to entities that are incorporated after this date. Furthermore, a penalty of AED 10,000 has been fixed upon missing the relevant tax registration deadlines.
Below are some of the relevant сorрorаte tax registration deadlines that you must know:
Deаԁlines for Finаnсiаl Yeаr 1 June 2023 to 31 Mаy 2024
- Aссorԁing to the сorрorаte law, the рerioԁ of registrаtion (26 months) begins on 1 Jаnuаry 2023 аnԁ enԁs on 28 Februаry 2025.
- 1st June 2023 was the deadline for the corporate tax аррliсаtion.
- The first tax period is from 1 June 2023 to 31 May 2024 and the return filing period is from 1 June 2024 to 28 February 2025.
- 28th February 2025 is the due date for filing returns for the first tax period.
- 1st June 2024 is the starting date for the second tax рerioԁ.
- 31st May 2025 is the ending date for the second tax period.
Deadlines for Corporate Tax Registration in 2024
For Resident Persons
The following timelines have been issued for submitting registration applications for corporate tax in UAE for the entities that were incorporated or otherwise established prior to and after 1 March 2024.
| License Issuance Deadline (Regardless of year of issuance) | Deadline for Corporate Tax Registration |
| 1 Jan-31 Jan | 31 May 2024 |
| 1 Feb-28/29 Feb | 31 May 2024 |
| 1 March-31 March | 30 June 2024 |
| 1 April-30 April | 30 June 2024 |
| 1 May-31 May | 31 July 2024 |
| 1 June-30 June | 31 Aug 2024 |
| 1 July-31 July | 30 Sept 2024 |
| 1 Aug-31 Aug | 31 Oct 2024 |
| 1 Sep-30 Sept | 31 Oct 2024 |
| 1 Oct-31 Oct | 30 Nov 2024 |
| 1 Nov-31 Nov | 30 Nov 2024 |
| 1 Dec-31 Dec | 31 Dec 2024 |
| When the entity doesn’t have a license on 1 March 2024 | 3 months from the effective date of the decision i.e., by 31 May 2024 |
For those corporate entities that were established, incorporated, or recognized after the effect of decision no 3 of 2024 i.e., 1 March 2024, the following timelines have been specified for the corporate tax registration application submission.
For Non-Resident Persons
If you are a branch of some foreign entity, you are required to submit a tax registration application in accordance with the following timelines:
- 9 months from the time when the UAE branch was officially recognized where it was within the scope of the corporate tax before 1 March 2024.
- 6 to 9 months from the date the UAE branch was recognized where it was within the scope of UAE corporate tax on or after 1 March 2024.
Penalty for the Late Corporate Tax Registration
If a business fails to register for the corporate tax before the said deadline, it will have to pay a certain fine. The FTA has announced a penalty of AED 10,000 for late registration cases. The penalty aims to encourage the taxpayers to comply and register according to the timelines given above.
Corporate Tax Registration: A Mandatory Obligation in UAE
According to every leading tax consultant in dubai, corporate tax registration in UAE is a fundamental obligation that aims to necessitate the submission of accurate financial data. This serves as the foundation for determining tax liabilities and works with the goal of cultivating a transparent business environment.
So, this is upon every business to gather their financial data diligently and ensure both the accuracy and the completeness of their financial records. The FTA offers a user-friendly online portal where businesses can go to access the registration network.
Timely and accurate tax registration submissions are thus, of great importance for entities who wish to create and reinforce a positive rapport with the tax authorities and avoid potential fines and penalties.
Final Words
You need to stay informed regarding the latest corporate tax laws and deadlines in order to stay compliant. This may also contribute to the growth of your business as well as the UAE’s financial landscape,
You also need to educate yourself about the distinct requirements for free zone companies and remain compliant with emirate-specific regulations. This will help you meet the legal obligations and effectively play your role as a responsible and law-abiding corporate entity of UAE.
