The UAE Federal Tax Authority (FTA) has now stipulated the deadline for taxable persons and certain exempt persons to register for corporate tax, in a recent decision issued by the FTA (i.e., Decision No. 3 of 2024) (FTA Decision). The FTA Decision comes into effect from 1 March 2024.
The deadlines for corporate tax registration depend on the residence, category of persons and date of incorporation or commencement of business of the person.
Resident Juridical Persons
In the case of UAE resident juridical persons, the deadline for the submission of the corporate tax registration application depends on the category of juridical person, time of incorporation and when the trade licence was issued (regardless of the year of issuance), with the earliest deadline falling on 31 May 2024. The deadlines for the submission of application by UAE resident juridical persons to register for corporate tax are as follows:
| UAE resident entities incorporated / established before 1 March 2024 | UAE resident entities incorporated / established on or after 1 March 2024 | ||
| Month of License Issuance
(regardless of the year of issuance) | Deadline for submission | Category of juridical persons | Deadline for submission |
| January or February | 31 May 2024 | Person that is incorporated, established or recognized under UAE laws, including free zone person | 3 months from the date of incorporation, establishment or recognition |
| March or April | 30 June 2024 | ||
| May | 31 July 2024 | ||
| June | 31 August 2024 | Person that is incorporated, established or recognized under laws of foreign jurisdiction that is effectively managed and controlled in the UAE | 3 months from the end of the financial year of the person |
| July | 30 September 2024 | ||
| August or September | 31 October 2024 | ||
| October or November | 30 November 2024 | ||
| December | 31 December 2024 | ||
| Where a person does not have a licence at the effective date of the FTA Decision | 3 months from the effective date of the FTA Decision (i.e., by 31 May 2024) | ||
Non-Resident Judicial Persons
Non-resident juridical persons with a permanent establishment (PE) in the UAE or a nexus in the UAE fall within the scope of taxable persons for UAE Corporate Tax Law purposes and are required to register for corporate tax in the UAE. The deadlines for the submission of application by non-resident juridical persons to register for corporate tax are as follows:
| Category of juridical persons | Prior to 1 March 2024
| On or after 1 March 2024 |
| A person that has a Permanent Establishment (PE) in the UAE
| 9 months from the date of existence of the PE | 6 months from the date of existence of the PE |
| A person that has a nexus in the UAE | 3 months from the effective date of the FTA Decision (i.e., 31 May 2024) | 3 months from the date of establishment of the nexus |
Natural Person
A natural person conducting a business or business activity in the UAE is required to submit its corporate tax registration application in accordance with the following timelines:
| Category of natural persons | Deadline for submitting a Tax Registration application |
| A resident person conducting a business or business activity during the 2024 Gregorian calendar year or subsequent years whose total turnover derived in a Gregorian calendar year exceeds the prescribed threshold | 31 March of the subsequent Gregorian calendar year |
| A non-resident person conducting a business or business activity during the 2024 Gregorian calendar year or subsequent years whose total turnover derived in a Gregorian calendar year exceeds the prescribed threshold | 3 months from the date of meeting the requirements of being subject to tax |
Consequences of Non-compliance
If a person fails to submit the application to register for corporate tax within the prescribed timelines above, the person would be subject to an administrative penalty of AED 10,000 under Cabinet Decision No.75 of 2023.
What should you do next?
It is essential for all businesses to determine the deadline for corporate tax registration that is applicable to their organization and submit the application for registration accordingly to ensure compliance with the UAE Corporate Tax Law. Businesses should also assess the impact of corporate tax on their organisations and ascertain eligibility for potential exemptions or reliefs if such an assessment has not already been undertaken.
How can Al Tamimi help?
Al Tamimi has the expertise and significant experience in corporate tax matters across the Middle East and all industry sectors, they are well placed to assess the impact of corporate tax on your organisation and assist with your corporate tax requirements in the UAE, including registering for corporate tax.
Key Contact
Shiraz Khan, Partner, Head of Taxation, s.khan@tamimi.com