Navigating the intricacies of corporate tax registration in the UAE is crucial for businesses aiming to stay compliant and avoid hefty penalties. With the 2024 deadlines fast approaching, understanding the specific requirements and timelines is more important than ever. In this section, we will delve into the essential details of the penalties for late registration and the various timelines that different types of taxable persons must adhere to. Whether you are a resident or non-resident juridical person, or a natural person conducting business in the UAE, this guide will provide you with the necessary information to ensure timely and accurate tax registration.
Overview of Corporate Tax Registration
The UAE’s Corporate Tax Law empowers the FTA to determine the registration timelines for taxable persons. Effective from March 1, 2024, FTA Decision No. 3 of 2024 establishes distinct registration periods based on various entity types and their circumstances.
Penalties
Administrative Penalty for Late Registration:
- Amount: AED 10,000
- Condition: This penalty is imposed on any taxable person who fails to submit a Tax Registration application within the timeline specified by the Federal Tax Authority (FTA).
Key Registration Timelines by Entity Type
The timelines for submitting a Tax Registration application vary based on the type of taxable person and their specific circumstances. Here’s a detailed breakdown:
Resident Juridical Persons
Incorporated before 1 March 2024:
- Must submit a Tax Registration application based on the month of their license issuance.
- Deadlines:
- 1 Jan – 31 Jan: 31 May 2024
- 1 Feb – 28/29 Feb: 31 May 2024
- 1 Mar – 31 Mar: 30 Jun 2024
- 1 Apr – 30 Apr: 30 Jun 2024
- 1 May – 31 May: 31 Jul 2024
- 1 Jun – 30 Jun: 31 Aug 2024
- 1 Jul – 31 Jul: 30 Sep 2024
- 1 Aug – 31 Aug: 31 Oct 2024
- 1 Sep – 30 Sep: 31 Oct 2024
- 1 Oct – 31 Oct: 30 Nov 2024
- 1 Nov – 30 Nov: 30 Nov 2024
- 1 Dec – 31 Dec: 31 Dec 2024
- If no license as of 1 March 2024: Deadline is 31 May 2024.
Incorporated on or after 1 March 2024:
- Must submit a Tax Registration application within three months from the date of incorporation, establishment, or recognition.
Non-Resident Juridical Persons
With a Permanent Establishment (PE) before 1 March 2024:
- Must submit a Tax Registration application within nine months from the date of PE existence.
With a PE on or after 1 March 2024:
- Must submit a Tax Registration application within six months from the date of PE existence.
With a nexus in the UAE before 1 March 2024:
- Must submit a Tax Registration application within three months from the effective date of FTA Decision No. 3 of 2024 (i.e., by 31 May 2024).
With a nexus on or after 1 March 2024:
- Must submit a Tax Registration application within three months from the date of establishing the nexus.
Natural Persons
Resident:
- Must submit a Tax Registration application if their turnover exceeds AED 1 million during a Gregorian calendar year, by 31 March of the subsequent year.
Non-Resident:
- Must submit a Tax Registration application if their turnover from a PE exceeds AED 1 million during a Gregorian calendar year, within three months of meeting the requirements.
Examples
- Example 1: A company incorporated in Ajman on 11 November 2023 must register by 30 November 2024.
- Example 2: A company managed in the UAE since 1 June 2023 must register by 31 May 2024.
- Example 3: A company with an expired license as of 1 March 2024 must register by 30 June 2024.
- Example 4: A company with multiple licenses should use the earliest issuance date to determine the registration deadline.
Special Cases
- International Agreements: If an international agreement provides a longer duration for recognizing a PE, the agreement’s provisions will prevail.
Don’t wait until it’s too late! Contact us at Theta 7 to get expert assistance with your UAE Corporate Tax registration. Our team is ready to help you navigate the process, meet all deadlines, and avoid costly penalties. Contact Us Now to ensure your business stays compliant and secure.
