UAE Corporate Tax Update:
The Federal Tax Authority (FTA) in UAE as published “Federal Tax Authority Decision No. 6 of 2023 Tax Deregistration Timeline for the Purposes of Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses”. This sets the timeline for application for De-registration from UAE Corporate Tax.
According to the above Decision:
1. A Natural person should file the application for de-registration from UAE Corporate Tax within 3 months of the date of cessation of his/her business or business activity.
2. A Juridical person should file the application for de-registration from UAE Corporate Tax within 3 months of the date the entity ceases to exist, cessation of the Business, dissolution, liquidation or otherwise..
The FTA has granted sufficient time for a taxable person to submit the application for de-registration from UAE Corporate Tax. It is yet to be known if there will be any penalties for not complying with the above deadlines for de-registration (similar to the penalty for VAT de-registration). This Decision comes into effect from June 01, 2023.