5 minutes
A new Corporate Tax Decision No. 3 of 2024 was announced by the Federal Tax Authority (FTA) on February 22. This decision was announced to maintain the timeliness of corporate tax in UAE registration and the Cabinet decision no. 10 of 2024 with the penalty of 10k AED for violation.
As of March 1, 2024, this rule for Corporate Tax in UAE has been implemented by the Federal Tax Authority and is applicable all over the UAE. This update is important for all businesses in the United Arab Emirates. Jaxa Chartered Accountants, one of the best accounting firms in UAE, will assist you in navigating through the new regulatory landscape.
Category of Juridical Persons
A juridical person can be categorized into 2 different segments. Below are the 2 categories of juridical persons:
- Resident Person
A person incorporated, established or recognised under the applicable legislation of another country or foreign territory and who is effectively managed and controlled in the UAE.
- Non-Resident Person
A person who has a permanent establishment in the country or a person with a Nexus in the UAE.
Timeline for Resident Juridical Persons
Here are the different deadlines based on your business setup date or the license issuance date:
License Issuance Month - Year the License |
Deadline to Apply for UAE Corporate Tax Registration |
|
January or February |
May 31, 2024 |
|
March or April |
June 30, 2024 |
|
May |
July 31, 2024 |
|
June |
August 31, 2024 |
|
July |
September 30, 2024 |
|
August or September |
October 31, 2024 |
|
October or November |
November 30, 2024 |
|
December |
December 31, 2024 |
Note 1: If a juridical person has more than one license, the license with earliest date shall be considered.
Note 2. If the business is incorporated on or after March 1, 2024, register for UAE corporate tax within 3 months of incorporation.
Non-Resident Person / Company |
|
Individuals/Natural person |
|
Important Points of New Regulations
Here are the key points to be noted to learn about the new regulations:
Residents |
Non-Residents |
|
|
Key Points to be Noted
- The Corporate tax registration decision is already effective on 1 March 2024.
- Taxable persons who got their licenses in January or February will be called for registration on or before the end of May 2024. Follow the procedure and register for corporate tax in UAE on time to avoid penalties.
- FTA will conduct webinars on the registration of corporate tax in UAE prior to the deadlines.
Contact Jaxa Charter Accountants for more information.
