Businesses in the UAE must comply with set deadlines for submitting their Corporate Tax registration applications. Effective March 1, 2024, the Federal Tax Authority (FTA) has outlined specific timeframes for different types of taxable entities or individuals to register for corporate tax in UAE, ensuring compliance with tax laws.
The latest Federal Tax Authority Decision No. 3 of 2024, issued on February 22, 2024, provides a clear procedure for registering taxable entities under Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses, along with its amendments.
Non-compliance with tax registration could result in Dh10,000 administrative penalties, as outlined in Articles 3, 4, and 5 of the decision, in line with Cabinet Decision No. 75 of 2023. Below, we present detailed timelines for corporate tax registration based on different entity categories.
Entrepreneurs and business owners must submit their tax registration applications before the deadlines to avoid heavy fines and penalties. Now Consultant offers assistance to ensure smooth compliance with FTA regulations, protecting your business from legal issues.
1) Last Dates For Resident Juridical Persons:
As per Article 3 of Federal Tax Authority Decision No. 3 of 2024, if a company was formed or set up before this decision came into effect, the time to apply for Tax Registration depends on when its license was issued. Check the table below for an easy view of the deadlines:
| The date when the license was issued, regardless of the year it was issued. | Last Dates for filing a Tax Registration application |
| 1 January – 31 January 1 | 31 May 2024 |
| 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 |
| If an individual does not possess a license at the time, this Decision becomes effective. | Three months from the date this Decision takes effect. |
License Prioritization:
As per Clause 1 of Article 3, if a legal entity has more than one License, the License that was issued first is considered most important. This rule brings clarity and uniformity to regulatory affairs, establishing a definite order for the Licenses held by a single entity.
Tax Registration Obligations:
A Resident Person, which is a legal entity formed or officially acknowledged on or after the effective date of this Decision, must complete a Tax Registration application within the specified timeframes as given below:
Category 1:
Person incorporated or recognized under the State’s applicable legislation, including a Free Zone Person.
Deadline: Three months from the date of incorporation, establishment, or recognition.
Category 2:
Individual incorporated or recognized under the applicable legislation of a foreign jurisdiction successfully take care of regulated in the UAE.
Deadline: Three months from the end of the person’s financial year.
2) Deadlines For Non-Resident Juridical Persons:
As per Article 4 of FTA Decision No. 3 of 2024, the timeline for tax registration of non-resident Juridical Persons is outlined below:
1. For Non-Resident Persons Before the Decision’s Effective Date:
Category 1:
A person with a permanent establishment in the State.
Deadline: Nine months from the date of the permanent establishment’s existence.
Category 2:
A person with a nexus in the State.
Deadline: Three months from the effective date of this Decision.
2. For Non-Resident Persons On or After the Decision’s Effective Date:
Category 1:
A person with a long-term or permanent establishment in the State.
Deadline: Six months from the date of the Permanent Establishment’s existence.
Category 2:
A person with a nexus in the State.
Deadline: Three months from the date of establishment of the nexus.
3) Deadlines for Tax Registration of Natural Persons
The natural persons are the Individuals engaging in business or business activities as sole proprietors in the UAE must adhere to the tax registration timeline outlined in Article 5 of FTA Decision No. 3 of 2024, as detailed below:
Resident Person:
A resident person engaging in business in the 2024 Gregorian calendar year or after with a total turnover surpassing the specified threshold in relevant tax legislation.
Deadline: March 31 of the subsequent Gregorian calendar year.
Non-Resident Person:
A non-resident person engaging in a business during the 2024 Gregorian calendar year or subsequent years with a total turnover exceeding the specified threshold in relevant tax legislation.
Deadline: Three months from the date of meeting the requirements of being subject to tax.
Penalty on Late Corporate Tax Registration:
In accordance with Article 6 of FTA Decision No. 3 of 2024, an amendment to Federal Decree-Law No. 47 of 2022, as outlined in Articles 3, 4, and 5 of Federal Tax Authority Decision No. 3 of 2024, imposes an administrative penalty of Dh10,000 for the late submission or failure to submit a tax registration application within the specified timelines.
For repeated violations within 24 months, the penalty increases to Dh20,000 per case, in alignment with Cabinet Decision No. 75 of 2023.
How Can We Help You?
According to the updates in deadlines of corporate tax registration as per FTA Decision No. 3 of 2024, businesses in the UAE have to submit tax registration application before the deadline is over. For that purpose, business owners need an expert corporate tax consultation for smooth submission of the application to mitigate the risk of penalties.
In the UAE, Now Consultant provides the best quality corporate tax registration and consultation services with expertise. Our expert team assists various types of entities in the UAE with their corporate tax registration, meeting their business needs and deadlines.
Our corporate tax experts will provide precise tax reports to ensure smooth filing with the federal authority, keeping your business in compliance with the law.
