FTA Presents New Decision on Set Deadlines for Corporate Tax Registration 

The Federal Tax Authority (FTA) has set deadlines for taxable persons subject to Corporate tax to make an application for registration with the FTA and sidestep violating tax rules. 

The deadlines were highlighted in a new decision presented by the FTA about the duration to make an application for registration under Federal Decree-Law No. 47 of 2022 on the taxation of companies and businesses and its revisions, which started in June month of last year and complies with the tax durations beginning on or after 1st June 2023. 

Useful from 1 March 2024, the new FTA Decision describes deadlines for making an application for registration for corporate tax that is crucial for juridical people and natural people, who are either tenants or overseas citizens. The decision shows that a juridical individual that is a tenant formed, or otherwise known before 1 March 2024 needs to apply for corporate tax registration within the provided deadlines. 

The FTA focused on the significance of presenting the application for corporate tax registration as per the deadlines mentioned in the Decision. This counts on taxable people with licenses allocated in January and February no matter the year the license was provided, it is necessary to present their application for registration of corporate tax before May 31, 2024, to sidestep tax rule violations. 

As per the Decision, in case a juridical person doesn’t carry a license by the efficient date of 1 March 2024 of Decision, they should make an application for registration within 3 months duration means before 31 May 2024. Meanwhile, in case the juridical individual carries a number of licenses, the timeframe to make an application for corporate tax registry depends on the earlier allocated license to determine the extra deadline to present the application for tax registration.

A juridical person who is a tenant, comprising Free zones, established, or otherwise known under the applicable rules in the United Arab Emirates on or After 1 Marc 2024, should make an application for tax registration within 3 months duration from the incorporation date. 

 The Decision clearly points that a juridical individual who is a citizen incorporated under the rules of another nation or overseas jurisdiction and efficiently handled in the United Arab Emirates on or after March 1st, 2024 needs to make an application for corporate tax in the three months duration from the end of the fiscal year. 

The decision FTA is vital to remember that a juridical individual who is a foreigner who has a Permanent formation in the United Arab Emirates before March 1, 2024, should make an application for corporate tax registration within the specified nine-month period from the date of the present in the UAE of their permanent formation, whereas a juridical individual that is a foreigner with a nexus in the nation should apply for tax registration by May 21, 2024. 

As per the conditions of the Decision, a tenant who runs a company or business activity throughout the Georgian calendar year 2024, and who has enhanced the turnover threshold mentioned in the relatable tax law, is required to make an application for Corporate tax registration by 31 March according to the Gregorian calendar year. Similarly, non-resident individuals conducting company or business activities in the Georgian calendar year 2024 and onward, exceeding the mentioned threshold, need to make an application for corporate tax registration within 3 months of meeting the terms stipulated for becoming a taxable individual. 

The Decision outlines that taxable people failing to present their corporate tax registration application within the designated deadlines, as indicated in the FTA’s decision for every category of taxable people, will face management fines. This is in accordance with the provisions set forth in Cabinet Decision No. 75 of 2023 concerning management fines related to the implementation of Federal law No 47 of 20222 on corporation taxation and companies, along with its subsequent amendments. 

The Federal Tax Authority (FTA) has unveiled plans for an extensive awareness campaign on Corporate Tax, entering its second phase with a focus on enlightening various business sectors. As part of this initiative, a series of webinars will be organized to provide comprehensive insights into the new Decision. These webinars serve the crucial purpose of educating taxable persons and concerned stakeholders about the prerequisites for Corporate Tax registration, specifically tailored to each category of taxable persons. The objective is to ensure that all eligible entities adhere to the stipulated deadlines outlined in the Decision.

The FTA is actively urging all stakeholders involved in the implementation of the Corporate Tax Law to diligently review the legislation, in addition to consulting the guidelines and manuals available on the FTA’s official website. Furthermore, stakeholders are encouraged to familiarize themselves with the relevant implementing decisions, including FTA Decision No. 3 of 2024, which delineates the specified timeframes for the registration of taxable persons. This comprehensive understanding is essential for compliance with Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses, along with its subsequent amendments.

To facilitate access to the pertinent information, stakeholders can conveniently navigate through the FTA’s website, where all relevant documents, guidelines, and manuals are readily available. The FTA emphasizes the importance of staying abreast of these resources to ensure a smooth and compliant implementation of the Corporate Tax Law. Interested parties can access FTA Decision No. 3 of 2024, detailing the specific timeframes for taxable persons’ registration, via the provided link. The FTA encourages proactive engagement with these resources, reinforcing its commitment to fostering understanding and adherence to the regulatory framework governing Corporate Tax in the United Arab Emirates.

The FTA reaffirmed that the Emara Tax digital tax services platform is the 24/7 resource for Corporate Tax registration. It also mentioned that there are four phases in the registration procedure, which should take 30 minutes to finish. 

The FTA continued by stating that users of EmaraTax can access their accounts if they have already recorded for excise tax or value-added tax, pick the taxpayer from the list, fulfill the registration of corporate tax approach, and present the demanded documents. After getting the registration application approved, applicants can get a Tax Registration Number for the purpose of corporate tax. 

Similar to this, the FTA stated that taxpayers paying corporate tax who aren’t registered should make a new user profile. New users can visit the official portal of FTA. Here they can make their account by adding their email ID and contact number. Once the use profile is done, they are able to go ahead toward the registration by identifying the taxpayer, choosing the corporate tax registration choice, and effortlessly fulfilling the procedure of registration. 

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