Tax officials in the United Arab Emirates have sent an urgent message to corporate taxpayers with permits from March and April. There will be fines imposed if these entities do not submit their registration applications by June 30, 2024.
Compliance Deadline for Corporate Taxpayers
The tax authorities in the UAE have issued a directive to corporate taxpayers holding licenses issued in March and April to submit their registration applications by the end of this month or risk facing penalties.
The Federal Tax Authority (FTA) has specifically called upon resident juridical persons subject to corporate tax, whose licenses were issued in March and April, to ensure their corporate tax registration applications are submitted by June 30, 2024, to avoid contravening tax regulations.
Regulatory Framework and Penalties
The FTA has underlined the importance of adhering to Federal Tax Authority Decision No. 3 of 2024, effective March 1, which sets deadlines for corporate taxpayers to submit their registration applications. According to the FTA, failure to comply with these deadlines could result in administrative penalties, as stipulated in Cabinet Decision No. (75) of 2023, which outlines penalties for violations of Federal Decree Law (47) of 2022 on the Taxation of Corporations and Businesses and its amendments.
It is pertinent to note that the specified deadlines for submitting corporate tax registration applications apply to both resident and non-resident juridical persons, as well as natural persons. Resident natural persons conducting business activities within the UAE and earning total revenues exceeding AED1 million ($272,000) within a Georgian calendar year are required to submit their corporate tax registration applications by March 31 of the following Georgian calendar year.
The enforcement of corporate tax in the UAE commenced on June 1, 2023. Therefore, resident natural persons conducting business activities in the country during the Georgian calendar year 2024 and earning total revenues exceeding AED 1 million ($272,000) must submit their registration applications by March 31, 2025. Similarly, non-resident natural persons conducting business activities within the UAE and earning total revenues exceeding AED1 million ($272,000) must submit their corporate tax registration applications within three months of meeting the corporate tax eligibility criteria.
To facilitate the registration process, the FTA offers corporate tax registration through the EmaraTax digital tax services platform, which is accessible 24/7. The registration process involves four main steps and typically takes around 30 minutes to complete. Taxpayers can access their accounts on the EmaraTax platform, complete the corporate tax registration application, and submit the required documents. Upon approval of the application, the taxpayer receives their corporate tax registration number.
Taxpayers can register directly through the EmaraTax platform or seek assistance from authorized tax agents listed on the Federal Tax Authority’s website. Additionally, corporate tax registration applications can be submitted at government service centers across the UAE, where specialists provide electronic services based on government service standards.
After completing the application process, taxpayers receive their tax registration number via email for corporate tax registration. The FTA encourages taxpayers subject to corporate tax to familiarize themselves with the UAE corporate tax law, implementing decisions, and related guides available on its website.
