Following the introduction of corporate tax in United Arab Emirates via Decree Law No 47 of 2022 with effect from June 1, 2023, Federal Tax Authority (FTA) has announced registration of corporate tax can be made via their digital service platform “Emaara Tax”. Every taxable person including free zone person is required to register for corporate tax and get a Tax Registration.
As per Article 51 of the UAE Corporate Tax Law, any Taxable Person shall register for Corporate Tax with the Federal Tax Authority (FTA) in the form and manner and within the timeline prescribed by the FTA and obtain a Tax Registration Number, except in circumstances prescribed by the Minister of Finance.
Recently, the FTA issued Decision No. 3 of 2024 on 22 February 2024 wherein the timelines are prescribed to submit an application for tax registration for juridical persons and natural persons.
Consequences of failure to submit the application before the deadline. Refer Attached file
Taxable Persons who fail to submit the application within the stipulated timelines may face a penalty of AED 10,000.
Timeline
Recently FTA has specified the timeline for Corporate Tax Registration of taxable person via FTA Decision No 3 of 2024 issued on February 22, 2024. The timeline for different categories of taxable persons for submitting the Tax registration is given as below
| Type of Taxable Person | Category | Deadline for submitting Tax Registration Application |
| Resident Juridical Person incorporated before March 1, 2024 | Licence issued in months of January and February | 31-May-24 |
| (In case of multiple licences, the licence with earliest issuance date shall be considered) | Licence issued in months of March and April | 30-Jun-24 |
| Licence issued in month of May | 31-Jul-24 | |
| Licence issued in month of June | 31-Aug-24 | |
| Licence issued in month of July | 30-Sep-24 | |
| Licence issued in months of August and September | 31-Oct-24 | |
| Licence issued in months of October and November | 30-Nov-24 | |
| Licence issued in month of December | 31-Dec-24 | |
| Where a person does not have licence on March 1, 2024 | 31-May-24 | |
| Resident Juridical Person incorporated after March 1, 2024 | Incorporated under an applicable legislation in UAE | 3 months from date of incorporation |
| Incorporated under a foreign legislation but managed and controlled in UAE | 3 months from end of Financial year | |
| Non- resident Juridical person prior to March 1, 2024 | Non-resident having PE in the UAE | 9 months from date of existence of PE |
| Non-resident having nexus in the UAE | 3 months from effective date of decision i.e. 31 May 2024 | |
| Non-resident Juridical Person on or after March 1, 2024 | Non-resident having PE in the UAE | 6 months from date of existence of PE |
| Non-resident having nexus in the UAE | 3 months from date of establishment of nexus | |
| Natural person – Resident | Business activity exceeding AED 1 million turnover in Gregorian calendar year 2024 or onward | 31st March of subsequent calendar year |
| Natural Person – Non resident | Business activity exceeding AED 1 million turnover in Gregorian calendar year 2024 or onwards | 3 months from date of meeting the requirement of being subject to tax |
Penalty
This deadline is for submission of registration application and not for obtaining Tax Registration Certificate and If the taxable person fails to submit the application according to above deadline, then a late registration penalty of AED 10,000 will be applicable.
How Can YUGA Help you
We have a team of tax experts that can help you identify the deadline for your Company as per its legal status and make the registration process simple and uncomplicated for you.
To initiate the tax registration process or for any queries related to registration we can be reached at
info@yugaaccounting; or +971 4 240 1110.
Our team of experts would be pleased to honor your requirements.