In the United Arab Emirates (UAE), the registration process for “Corporate Tax” (also referred to as UAE Corporate Income Tax) is regulated by the “Federal Tax Authority” (FTA), under the UAE Ministry of Finance, in accordance with “Federal Decree-Law No. 47 of 2022”. The Corporate Tax system came into effect for financial years starting on or after June 1, 2023. Here is an overview of the registration process and deadlines:
I. Mandatory Registration:
All companies and legal entities operating in the UAE are required to register for Corporate Tax. This includes both UAE mainland companies and free zone entities (even if they qualify for the 0% rate in a free zone).
II. FTA Portal Registration:
The registration is done online through the “Federal Tax Authority’s e-Services portal”. Businesses need to create an account (if they do not already have one) and submit the necessary details.
III. Documents Required for Registration:
IV. Tax Registration Number (TRN)
Upon successful registration, businesses are issued a “Corporate Tax Registration Number” (TRN). This number will be used for all future interactions with the tax authority.
V. Exemptions from Registration:
Certain entities may be exempt from registration, including:
The FTA has not prescribed a universal deadline for corporate tax registration, as it depends on the financial year of the business. However: Companies are expected to register before their first corporate tax return is due. The first corporate tax return filing is expected to happen 9 months after the end of the relevant financial year.
For instance: If a company’s financial year starts on June 1, 2023, its first tax period would be from June 1, 2023, to May 31, 2024. Its tax return filing deadline would be 9 months after May 31, 2024, meaning by February 29, 2025.
It is advisable for businesses to register early to ensure compliance and avoid any potential penalties for delayed registration or filing.
|
Date of License issuance irrespective of year of issuance |
Deadline for submitting a Tax Registration application |
| 1 January – 31 January | 31 May 2024 |
| 1 February – 28/29 February | 31 May 2024 |
| 1 March – 31 March | 30 June 2024 |
| 1 April – 30 April | 30 June 2024 |
| 1 May – 31 May | 31 July 2024 |
| 1 June – 30 June | 31 August 2024 |
| 1 July – 31 July | 30 September 2024 |
| 1 August – 31 August | 31 October 2024 |
| 1 September – 30 September | 31 October 2024 |
| 1 October – 31 October | 30 November 2024 |
| 1 November – 30 November | 30 November 2024 |
| 1 December – 31 December | 31 December 2024 |
| Where a person does not have a License at the effective date of this Decision | (3) three months from the effective date of this Decision |
FTA Decision No. 3 of 2024
Failure to register for Corporate Tax within the prescribed timeline or failure to file returns can result in penalties. The FTA has established a range of fines for non-compliance.
| No. | Description of Violation | Administrative Penalty Amount in AED |
| 1. | Failure of the Person conducting a Business or Business Activity or having a Tax obligation under the Tax Procedures Law or the Corporate Tax Law to keep the required records and other information specified in the Tax Procedures Law and the Corporate Tax Law. | One of the following penalties shall apply: 1. 10,000 for each violation. 2. 20,000 in each case of repeated violation within 24 months from the date of the last violation. |
| 2. | Failure of the Person conducting Business or Business Activity or having a Tax obligation under the Tax Procedures Law or the Corporate Tax Law to submit the data, records and documents related to Tax in Arabic to the Authority when requested. | 5,000 |
| 3. | Failure of the Registrant to submit a deregistration application within the timeframe specified in the Corporate Tax Law and its implementing decisions. | 1,000 in case of late submission of the application and on the same date monthly, up to a maximum of 10,000. |
| 4. | Failure of the Registrant to inform the Authority of any case that may require the amendment of the information pertaining to his Tax record kept by the Authority. | One of the following penalties shall apply: 1. 1,000 for each violation. 2. 5,000 in each case of repeated violation within 24 months from the date of the last violation. |
Excerpt of Table of Violations and Administrative Penalties of Cabinet Decision No. 75 of 2023
We at Meyer-Reumann & Partners are specialized in individual consultation and dedicated to help you achieve the outcomes you desire from a legal perspective.
We are currently offering an initial consultation on corporate tax at a reduced price of AED 1,100 excl. 5% VAT until the end of the year (31 December 2024). Please contact us directly for an appointment
