UAE Corporate Tax Registration & Deadlines
Corporate tax registration is a part of the regulatory framework that ensures all businesses or companies comply with tax obligations in the UAE. Freezone companies are also included in this. Corporate Tax in UAE is implemented from June 1st, 2023. On December 9th, 2022, Federal Decree-Law No.47 of 2022 on the Taxation of Corporations and Businesses has been published.
This law states that a 9% corporate tax will be charged on companies with a profit of Dh 375,000 and above.
In December 2023, a guide was published that clearly defines who is responsible for paying the corporate tax. The FTA encouraged all individuals realizing income in the UAE or conducting business – wholly or partly – in the UAE, to refer to the new guide. It helps them to familiarize themselves with the Corporate Tax Law, implementing decisions, and other relevant materials on the FTA’s website.
Documents Needed for Corporate Tax Registration
- Trade license
- Incorporation documents Memorandum of Association(MOA) or Articles of Association(AOA)
- Personal details of shareholders and directors – Passport copy, Emirates ID, contact details like mobile number and e-mail.
- Company details like name of the company with full address including P.O box.
- Financial statements
UAE Corporate Tax Registration Deadlines
| 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 |
Small Business Reliefs
The UAE government has announced Small Business Relief (SBR) to support small businesses or startups to ease their corporate tax implementation. This relief applies to resident taxable persons with a gross business income of up to Dh3 million in the relevant tax period and any previous tax periods that end on or before December 31, 2026. The person who is eligible for a Small Business Relief can file a simplified Corporate tax return.
UAE Corporate Tax Fines and Penalties
And also FTA imposed administrative penalties for violations related to Corporate Tax law. On Tuesday 28th of February 2024, The Ministry of Finance announced a Dh10,000 fine for late corporate tax registration. The main intention of this penalty is to encourage taxpayers to comply with tax regulations and register promptly.
Get Professional Assistance From Booming Bytes
Registering for corporate tax in the UAE is a crucial step for businesses to ensure compliance with the country’s tax regulations. Staying informed about the requirements and deadlines, and seeking professional guidance if necessary, can help streamline the process and avoid potential issues.
If you are planning to register corporate tax in UAE and are doubtful regarding the requirements and procedures, please feel free to contact us.
Source: Khaleej Times
