The Federal Tax Authority (FTA) has urged Resident Juridical Persons that are subject to corporate tax with licences issued in March and April (regardless of the year of issuance) to promptly submit their corporate tax registration application by 30th June 2024 to avoid violating tax regulations and incurring administrative penalties.
In a statement, the FTA cautioned that taxable persons that fail to apply to register for corporate tax within the specified timelines will be subjected to administrative penalty of Dh10,000.
The FTA urged taxpayers to adhere to the timelines specified in FTA Decision No. 3 of 2024, which came into effect on 1st March 2024. “The decision specifies timelines for each category of taxable persons subject to corporate tax, on when they are required to submit their corporate tax registration applications.”
The FTA decision is inclusive of juridical and natural persons, both Resident Persons and Non-Resident Persons.
The FTA called on taxable persons to familiarise themselves with the public clarification it has recently issued regarding the specified timelines for corporate tax registration. The public clarification provides a comprehensive analysis and examples to understand the timelines that apply to various categories of persons to submit their registration applications. The clarification also addresses the registration requirements for juridical persons seeking exempt status from the FTA under the corporate tax law.
According to the clarification, juridical persons that are resident persons incorporated or otherwise established or recognised prior to 1st March 2024 must submit their tax registration application based on the month of their licence issuance. If the taxable person holds an expired licence at 1st March 2024, the reference for submission is still based on the month of its original licence issuance.
For those with multiple licences, the deadline is determined by the licence with the earliest issuance date. For juridical persons that are incorporated or otherwise established or recognised on or after March 1, 2024, they must submit a Tax Registration application within three months from the date of incorporation, establishment, or recognition. Juridical persons recognised under foreign legislation but effectively managed and controlled in the UAE must submit a Tax Registration application within three months from the end of their Financial Year.
The corporate tax registration is available through the “EmaraTax” digital tax services platform, accessible 24/7; the registration process has been simplified in four main steps, that will take approximately 30 minutes, the FTA statement said.