Corporate Tax Registration Deadline in UAE

The corporate tax registration deadline in UAE depends on the month of a license issued to the resident person, irrespective of the year of license issuance. For example, If the resident person got their license in January or February, then the corporate tax registration application must be submitted on May 31, 2024. The Federal Tax Authority (FTA) issued Decision No. 3 of 2024 on February 22, 2024, establishing these new deadlines to avoid tax law violations. It came into effect on March 1, 2024. Under the UAE CT Law, all Taxable Persons and certain Exempt Persons (such as Qualifying Public Benefit entities and Qualifying Investment Funds) must register for Corporate Tax (CT) with the Federal Tax Authority (FTA) to obtain a Tax Registration Number (TRN). This article provides a guide to the corporate tax registration deadlines, penalties, and checklist to apply.

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Who should register for Corporate tax in UAE?

The following is the list of entities that should register for corporate tax in UAE, 

• Resident Juridical Persons:
• Includes entities incorporated in the UAE or holding a UAE business license.
• Must register for corporate tax by the specified deadlines based on their incorporation or license issuance dates.
• Non-Resident Juridical Persons:
• This applies to non-resident entities conducting business or earning income in the UAE.
• Required to register for corporate tax if they meet the defined criteria for taxable presence in the UAE.
• Natural Persons (Individual Entrepreneurs and Business Owners):
• Individuals conducting business activities that fall under corporate tax obligations.
• Must ensure timely registration to comply with corporate tax regulations.

What are the deadlines for Corporate tax registration in UAE?

Previously, the taxable person had a registration period based on their financial year-end. If a taxable person's financial year ends on May 31st, they have a registration period of 26 months available until February 28th, 2026. Likewise, for taxable persons with a financial year ending on December 31st, a registration period of 33 months is available until September 30th, 2026. However, on February 22, 2024, the FTA implemented new deadlines based on the issuance of your entity's license. Let's get into detail. 

Resident Juridical Persons

The corporate tax registration deadline in UAE for resident juridical persons varies based on the type of jurisdiction, date of incorporation, and license issuance date. Below, we have given the timeline for corporate tax registration as per the UAE regulations.

Resident Entities Incorporated Before March 1, 2024:

Resident persons in the UAE, incorporated, established, or recognised before March 1, 2024, must apply for corporate tax registration based on the month their license was issued. The deadlines are as follows:

Resident Entities On or After March 1, 2024:

• Resident persons incorporated, established, or recognised in the UAE on or after March 1, 2024, must register for corporate tax within three months of their incorporation, establishment, or recognition.
• Resident persons incorporated, established, or recognised in another country must register within three months of the end of their financial year if they are effectively managed and controlled in the UAE.

Non-Resident Juridical Persons

Non-resident juridical persons in UAE with permanent establishment status or attained a significant economic presence must register for corporate tax, as per UAE Corporate tax law. Here are the deadlines based on the established date,  

• Established Before March 1, 2024: Must register for corporate tax within nine months of their establishment.
• Established On or After March 1, 2024: Must register within six months of their establishment.
• With a Nexus in the UAE:
• If the nexus existed before March 1, 2024, registration is required by May 31, 2024.
• If the nexus was established on or after March 1, 2024, registration is required within three months.

Natural Persons

Natural persons engaged in business in UAE must comply with the corporate tax registration deadlines. Check the below deadlines for both resident and non-resident natural persons, 

Resident Natural Persons

If a resident person’s turnover exceeds the specified threshold during the Gregorian calendar year 2024, they must register for corporate tax by March 31 of the following year.

Non-Resident Natural Persons

If a non-resident person’s turnover exceeds the specified threshold during the Gregorian calendar year 2024 or subsequent years, they must register for corporate tax within three months.

Penalties for late corporate tax registration in UAE

All eligible mainland and free zone companies must register for corporate tax before their corporate tax registration deadline in UAE. Failing to apply could lead to the following penalties and issues,

• Administrative Penalties: The administrative penalty for late corporate tax registration is AED 10,000, while late corporate tax deregistration incurs a penalty starting at AED 1,000 and increasing monthly to a maximum of AED 10,000.
• Processing Delays: Missing the deadline can delay the processing of your tax refunds, potentially impacting your cash flow.
• Difficulties with Government Clearances: Late registration might prevent your ability to obtain necessary government clearances and permits, disrupting operations.
• Reputational Damage: Failing to comply with FTA regulations can negatively affect your company's image and credibility.

To get detailed information: How to register for corporate tax in UAE?

Checklist for corporate tax registration in UAE

It's essential to understand the requirements for corporate tax registration in UAE clearly. This will help you avoid the above-mentioned financial penalties and legal issues. Use the checklist given below to register for corporate tax before the corporate tax registration deadline.

• Confirm eligibility: Ensure your business meets the criteria for corporate tax registration.
• Gather required documents: Collect all necessary documents, such as trade licenses, & emirates ID/passport (authorized signatory), proof of address, bank account details, annual financial statements (if applicable). Ensure to 
• Create an EmaraTax Account: Register by using your email and phone number.

• Register Your Taxable Person:

• Log in and select "Corporate Tax".
• Enter company details, upload documents, and follow instructions.

• Designate an Authorized Signatory:

• Choose someone to manage your account and submit returns.
• Provide their Emirates ID/Passport details and contact information.
• Ensure that a valid trade license is uploaded and accepted before getting into the corporate tax registration application.

• Review & Submit:

• Carefully review all information entered.
• Make corrections before submitting your application.

• Wait for Confirmation:

• The FTA will be processed within 20 business days.
• You'll receive a notification and your Tax Registration Number (TRN) upon approval.

Conclusion

As mentioned, the FTA has decided the deadline for corporate tax registration is based on the issuance of the entity's license. Ensure you register within the deadline to avoid the penalty of AED 10,000. Complete your corporate tax registration process with Filings.ae before the corporate tax registration deadline to prevent penalties and legal issues. It allows you to focus more on business activities and strategies.

Registering for UAE Corporate tax is made easier with Filings.ae!!