Background
The Federal Tax Authority (the FTA) has issued Decision No. 3 of 2024, which came into effect on 1 March 2024. This decision prescribes the corporate tax registration timeline for taxable persons under the Federal Decree-Law No. 47 of 2022, concerning the taxation of corporations and businesses.
Whilst it was initially stated in the FTA's FAQs that entities would be required to register for corporate tax prior to filing their first tax return, the FTA's recent decision introduces a structured set of timelines for the registration of resident, non-resident, corporate and natural taxable persons under Federal Decree-Law No. 47 of 2022.
Persons who are required to register for corporate tax under Federal Decree-Law No. 47 of 2022 should follow these timelines to ensure that they comply with the UAE's tax laws concerning registration for corporate tax.
Registration Timeline for Taxable Persons
The decision mandates that all taxable persons adhere to a specified timeline for tax registration.
1. Juridical persons (corporates) resident in the UAE for the purposes of Federal Decree-Law No. 47 of 2022 and established before 1 March 2024
The deadline for submitting a tax registration application is staggered throughout 2024, based on the month (and not year) in which the person obtained its commercial license in accordance with the following:
Date of licence issuance: 1 January - 28/29 February
Deadline: 31 May 2024
Date of licence issuance: 1 March – 30 April
Deadline: 30 June 2024
Date of licence issuance: 1 May – 31 May
Deadline: 31 July 2024
Date of licence issuance: 1 June – 30 June
Deadline: 31 August 2024
Date of licence issuance: 1 July – 31 July
Deadline: 30 September 2024
Date of licence issuance: 1 August – 30 September
Deadline: 31 October 2024
Date of licence issuance: 1 October – 30 November 2024
Deadline: 30 November 2024
Date of licence issuance: 1 December – 31 December
Deadline: 31 December 2024
Date of licence issuance: Where a person does not have a license at 1 March 2024
Deadline: (3) three months from 1 March 2024
Where an entity has multiple commercial licenses, the commercial licence with the earliest issuance date should be used to determine the relevant filing deadline, in accordance with the above.
2. Juridical persons (corporates) resident in the UAE for the purposes of Federal Decree-Law No. 47 of 2022 and established on or after 1 March 2024
The deadline for submitting a tax registration application is:
2.1 where the person is established under the laws of the UAE (including in a Free Zone), the date falling 3 months after the date the person was established;
2.2 where the person is established under the laws of a foreign jurisdiction but centrally managed and controlled in the UAE, the date falling 3 months after the end of the financial year of that person.
3. Juridical persons (corporates) considered to be Non-Resident Persons for the purposes of Federal Decree-Law No. 47 of 2022 prior to 1 March 2024
The deadline for submitting a tax registration application is:
3.1 where the person is considered to be a non-resident person due to having a Permanent Establishment in the UAE, the date falling nine months after the creation of the Permanent Establishment in the UAE.
3.2 where the person is considered to be a non-resident person due to having a nexus in the UAE, the date falling three months after 1 March 2024.
4. Juridical persons (corporates) considered to be Non-Resident Persons for the purposes of Federal Decree-Law No. 47 of 2022 on or after 1 March 2024
The deadline for submitting a tax registration application is:
4.1 where the person is considered to be a non-resident person due to having a Permanent Establishment in the UAE, the date falling six months after the creation of the Permanent Establishment.
4.2 Where the person is considered to be a non-resident person due to having a nexus in the UAE, the date falling three months after the establishment of the nexus.
5. Resident natural persons engaged in business activities during 2024 (or subsequently) for the purposes of Federal Decree-Law No. 47 of 2022
The deadline for submitting a tax registration application is 31 March in the year following the year in which the person’s turnover exceeds the 1 Million AED threshold for registration.
6. Non-resident natural persons engaged in business activities during 2024 (or subsequently) for the purposes of Federal Decree-Law No. 47 of 2022
The deadline for submitting a tax registration application is the date falling 3 months after the date on which the person meets the requirements to be subject to UAE corporate tax.
Decision number 3 of 2024 does not expressly /specifically address what the deadline for submitting a tax registration application will be for branches or other local establishments which were already in existence as at 1 June 2023 (the date on which corporate tax was introduced in the UAE).
Implications of Non-Compliance
The decision also outlines that failure to register in accordance with the specified timelines will result in administrative penalties, in line with Cabinet Decision No. 75 of 2023.
This document (and any information accessed through links in this document) is provided for information purposes only and does not constitute legal advice. Professional legal advice should be obtained before taking or refraining from any action as a result of the contents of this document.
