Mandatory Corporate Tax Registration: Key Dates and Penalties

Important Dates for Corporate Tax Registration

The FTA has set forth a timeline for the registration of taxable persons under the Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses. Key registration deadlines vary depending on the date of license issuance or the date of incorporation/establishment:

For existing Resident Juridical Persons: Deadlines range from 31 May 2024 to 31 December 2024, based on the license issuance date.

For new Resident Juridical Persons (post-effective date of the decision): A deadline of three months from the date of incorporation, establishment, or recognition.

For Non-Resident Juridical Persons: Varies between three to nine months, depending on their status and the existence of a Permanent Establishment in the state.

Penalties for Late Registration

In line with Cabinet Decision No. 75 of 2023, the FTA has outlined penalties for late registration. Notably, a fixed penalty of AED 10,000 is imposed for failure to submit a Tax Registration application within the specified timeframe, with an added penalty for repeated violations.

Action Required

Businesses are encouraged to promptly assess their compliance status with the newly established corporate tax registration deadlines to circumvent potential penalties. Our team is on hand to provide guidance and support throughout this process.

Sources:

FTA Decision No. 3 of 2024 on Registration Timeline for Corporate Tax

New Cabinet Decision No. 75 of 2023 and amendments