Corporate Tax Registration Timelines Specified – Due dates starting from 31 May 2024
Background
- All Taxable Persons are required to register for Corporate Tax with the Federal Tax Authority (“the FTA”). There is no registration threshold.
- Earlier understanding – As per Corporate Tax FAQs published till now, taxpayers were required to register before they file their first corporate tax return i.e. within 9 months after their financial year end. For ex: An Entity having Jan-Dec 2024 Financial Year could register on or before September 2025. This understanding has changed now.
- Recent update – Timelines for corporate tax registration has been specified, which differs from earlier understanding. Existing businesses would now be required to submit corporate tax registration applications in the year 2024, earliest due date being 31 May 2024.
Recent Updates
Federal Tax Authority Decision No. 3 of 2024 – Corporate Tax Registration Timeline Specified
(A) Resident juridical person / legal entity – Incorporated or otherwise established or recognized prior to 1 March 2024
| Date of License issuance irrespective of year of issuance | Due date for submitting corporate tax registration application |
|---|---|
| 1 January to 28/29 February | 31-May-24 |
| 1 March - 30 April | 30-Jun-24 |
| 1 May - 31 May | 31-Jul-24 |
| 1 June - 30 June | 31-Aug-24 |
| 1 July - 31 July | 30-Sep-24 |
| 1 August - 30 September | 31-Oct-24 |
| 1 October - 30 November | 30-Nov-24 |
| 1 December - 31 December | 31-Dec-24 |
| Where a person does not have a License as at 1 March 2024 | 31-May-24* |
*3 months from the effective date of 01 March 2024
Note: If person has more than one license, the license with the earliest date to be used.
(B) Resident juridical person / legal entity – Incorporated or otherwise established or recognized on or after 1 March 2024
| Category of juridical persons | Due date for submitting corporate tax registration application |
|---|---|
| Entities incorporated or otherwise established or recognized in the UAE (including a Free Zone Person). | 3 months from the date of incorporation / establishment / recognition |
| Foreign entities having place of effective management in the UAE | 3 months from the end of the Financial year |
(C) Non-resident juridical person / legal entity – If non-resident prior to 1 March 2024
| Sr No. | Category | Due date for submitting corporate tax registration application |
|---|---|---|
| 1 | A person having Permanent Establishment ('PE') in the UAE | 9 months from the date of existence of the PE |
| 2 | A person having nexus in the UAE | 31st May 2024* |
*3 months from the effective date of 01 March 2024
(D) Non-resident juridical person / legal entity – If non-resident on or after 1 March 2024
| Sr No. | Category | Due date for submitting corporate tax registration application |
|---|---|---|
| 1 | A person having PE in the UAE | 6 months from the date of existence of the PE |
| 2 | A person having nexus in the UAE | 3 months from the date of establishment of the nexus |
(E) Natural Person
| Category of natural persons | Due date for submitting corporate tax registration application |
|---|---|
| A Resident Natural Person conducting Business or Business Activity during the 2024 Gregorian calendar year or subsequent years | 31 March of the subsequent Gregorian calendar year |
| A Non-Resident Natural Person conducting Business or Business Activity during the 2024 Gregorian calendar year or subsequent years | 3 months from the date of meeting the requirements of being subject to tax |
Note: Natural person would be subject to the UAE corporate tax if annual turnover from business or business activity exceeds AED 1 million.
MCA Comments
- Corporate tax registration timelines have been specified. Earliest due date for submitting a tax registration application would be 31 May 2024.
- Depending upon type of a person, applications need to be made basis date of license or date of incorporation or date of existence of the PE or the nexus etc.
- UAE entity with multiple licenses need to determine due date basis the license with earliest issuance date.
- It would be advisable for all taxable persons (whether resident or non-resident) to identify due date for applying corporate tax registration immediately and make an application on timely basis to avoid penalty.
- Delay in making an application for corporate tax registration will attract penalty of AED 10,000 as per Cabinet Decision No. 10 of 2024.
Disclaimer: This is a summarised version of the UAE Corporate Tax legislation and it is advised to refer to the detailed law provisions prior to initiating any decisions.
Please feel free to contact us for any further clarification/impact assessment assignments.
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