Importance of New UAE Corporate Tax Registration Deadlines for Businesses - Smart Zones® UAE

Importance of New UAE Corporate Tax Registration Deadlines for Businesses

The Federal Tax Authority (FTA) has established new registration deadlines for businesses subject to UAE corporate tax in 2024. These deadlines supersede previous assumptions regarding registration timing.

While the new approach provides clarity on required actions, some uncertainties remain. Guidance on determining a business’s fiscal year may be forthcoming. Businesses should proactively monitor all FTA releases to ensure compliance.

The growing complexity of UAE tax regulations underscores the value of a dedicated company secretary function, responsible for managing tax compliance tasks.

Previously, businesses could register for corporate tax before settling any tax liability. Now, deadlines exist based on trade license issuance dates. Failure to initiate registration by the deadline incurs a Dh10,000 penalty. Importantly, the penalty applies for not starting the process, not for incomplete applications by the deadline.

Appeal options exist for rejected applications. However, success rates are unclear. Additionally, system-related challenges may arise, particularly for businesses already registered for VAT.

The FTA portal requires businesses to maintain current supporting documents. While the previous requirement for continual updates was discontinued, recent reminders highlight expired documents. These must be updated before initiating corporate tax registration. Potential delays may occur due to the review process for updated documents.

Misinformation regarding deadlines circulated following the announcement. Businesses are advised to seek professional guidance and act well ahead of their applicable deadlines to ensure smooth registration and avoid penalties.


Publish 6 Mar 2024


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