Registering for Corporate Tax and obtaining a unique Registration Number is a mandatory requirement for all taxable entities, including Free Zone businesses in the UAE. Register for corporate tax and maintain compliance through Filings.ae.
Registering for Corporate Tax and obtaining a unique Registration Number is a mandatory requirement for all taxable entities, including Free Zone businesses in the UAE. Register for corporate tax and maintain compliance through Filings.ae.
WIO Bank Official Partner Seamlessly open your UAE Bank Account |
Manage your business and track services |
WIO Bank Official Partner Seamlessly open your UAE Bank Account |
Manage your business and track services |
Corporate tax registration in the UAE is mandatory for all eligible entities and individuals operating within the country. On February 22, the Federal Tax Authority (FTA) issued Decision No. 3 of 2024, setting new UAE Corporate Tax registration deadlines. In Addition, Cabinet Decision No. 10 of 2024 enforces a stringent administrative penalty of AED 10,000 on businesses failing to register for the UAE Corporate Tax within the specified deadlines. These regulations come into force on March 1, 2024. In this article, we will explore the details of new Corporate Tax Registration deadlines and the penalties for non-compliance.
If you haven't registered for Corporate Tax yet, now is the time to act. Contact filings.ae experts promptly to avoid the AED 10,000 penalty!
Get Started!The Cabinet Decision on 2024 Corporate Tax Registration introduces new deadlines and imposes a hefty penalty for non-compliance.
The official notification regarding Federal Tax Authority Decision No. 3 of 2024 is here for reference.
Your web browser doesn't have a PDF plugin. Instead you can click here to download the PDF file.
Corporate tax in the UAE is a direct tax imposed on the net profits earned by corporations and various business organisations. Often referred to as 'Corporate Income Tax' or 'Business Profits Tax,' this tax mandates that businesses allocate a specified portion of their profits to the government as tax.
Corporate Tax Registration in the UAE is a compulsory process for companies and taxable entities to align with the nation's tax laws, as outlined by the Federal Tax Authority (FTA). It requires entities to formally register with the FTA, securing a Corporate Tax Registration Number crucial for meeting tax obligations as per Federal Decree-Law No. 47 on the Taxation of Corporations and Businesses, effective for financial years commencing on or after June 1, 2023.
In the UAE, all businesses and individuals conducting economic activities that generate taxable income must register for Corporate Tax. This includes mainland companies, free zone companies, and foreign entities doing business in the UAE, subject to specific criteria set by the Federal Tax Authority (FTA).
Click here to learn about Who should get corporate tax registration in the UAE.
In the UAE, some entities don't have to register for Corporate Tax or are exempt based on specific criteria:
Automatically Exempt:
Exempt with Notification:
Exempt by Cabinet Decision:
Exempt with FTA Approval:
The corporate tax rate in the UAE is set at 9% on the net profits of businesses. To support small businesses and startups, a 0% corporate tax rate applies to net profits up to AED 375,000.
Therefore, any business earning a taxable net profit exceeding AED 375,000 must pay corporate tax at 9% on their net profits.
The Corporate Tax Registration application deadline will be determined by the issuance date of the resident UAE entity's license. For instance, entities issued licenses between January 1 and January 31 must submit their applications by May 31, 2024. The deadlines are set as follows:
Date of License Issuance | Deadline for Tax Registration |
---|---|
1 January - 31 January | 31 May 2024 |
1 February - 28/29 February | 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 August 2024 |
1 July - 31 July | 30 September 2024 |
1 August - 31 August | 31 October 2024 |
1 September - 30 September | 31 October 2024 |
1 October - 31 October | 30 November 2024 |
1 November - 30 November | 30 November 2024 |
1 December- 31 December | 31 December 2024 |
Where no License exists at the effective date of this Decision | Three months from the effective date of this Decision |
Here are the detailed Corporate Tax registration deadlines in the UAE, categorised by entity type and specific conditions:
For juridical persons without a Business license as of March 1, 2024, the FTA mandates Corporate tax registration within three months, by May 31, 2024. The earliest issued license determines the registration timeline if an entity holds multiple licenses.
The Corporate Tax deadline details have been provided in a table format for easy reference:
Entity Type | Condition | Registration Deadline |
---|---|---|
Juridical Persons (No License by Mar 1, 2024) | - | By May 31, 2024 |
Resident Juridical Persons (After Mar 1, 2024) | - | Within 3 months from incorporation/establishment |
Non-Resident Juridical Persons (Before Mar 1) | Permanent Establishment in UAE | Within 9 months from establishment |
Non-Resident Juridical Persons (Before Mar 1) | Nexus in UAE | By May 31 |
Non-Resident Juridical Persons (After Mar 1) | Permanent Establishment in UAE | Within 6 months from establishment |
Non-Resident Juridical Persons (After Mar 1) | Nexus in UAE | By May 31 |
Natural Persons (Residents) | Annual turnover > Dh1 million | By March 31 of the following year |
Natural Persons (Non-Residents) | Subject to tax in UAE | Within 3 months of becoming liable |
Note:*A "juridical person" is an entity established or otherwise recognised under the laws and regulations of the UAE, or under the laws of a foreign jurisdiction, that has a legal personality separate from its founders, owners and directors.
*The term "natural person" in the Corporate Tax Law refers to an individual.
As mentioned above, Businesses failing to meet the Federal Tax Authority's deadlines for Corporate Tax registration will incur a penalty of AED 10,000, as announced by the Ministry.
Businesses must adhere to the registration deadlines to avoid this significant financial penalty.
For Corporate Tax registration in the UAE, businesses need to prepare and submit the following documents online:
Additional documents for Free Zone companies in the UAE for Corporate Tax Registration include the following:
To register for UAE Corporate Tax, follow these steps through the EmaraTax platform, the Federal Tax Authority's dedicated online portal:
After completing the Corporate Tax registration, businesses must file Corporate Tax returns and settle any outstanding taxes. This process must be completed within nine months after their specific tax period ends.
For businesses seeking assistance with this process, filings.ae offers professional services to help you file your Corporate Tax returns accurately and on time.
Get Started!In conclusion, the recent regulatory decisions regarding Corporate Tax registration in the UAE underscore the critical importance of timely compliance for businesses. With clear deadlines and significant penalties in place, it's essential for companies to act swiftly to avoid financial repercussions. By registering for Corporate Tax and adhering to regulatory requirements, businesses demonstrate their commitment to legal compliance, unlock potential tax benefits, and foster trust within the business community.
Timely registration for Corporate Tax is essential to avoid penalties. With the deadline approaching, businesses must act promptly. Filings.ae tax experts are here to guide you through the entire registration procedure, guaranteeing adherence to Federal Tax Authority (FTA) rules.
Avoid the hefty AED 10,000 penalty. Contact our experts now and secure your corporate tax registration without delay!
Get Started!We are backed by reputed investors like ICICI Bank Limited, BeeNext & Udtara.
We have over 700 employees across UAE & India to support our global client-base.
We place our customers interest and have a refund policy. If a service is not delivered, refund is provided.
We are committed to providing affordable and reliable services to our clients. At Filings.AE, our team of 700 employees across India serve over 1 lakh paid customers globally. We help businesses with incorporation, trademark, tax filing, compliance and payroll services.