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UAE FTA Issues – Corporate Tax Registration Timeline for Taxable Person

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UAE FTA Issues – Corporate Tax Registration Timeline for Taxable Person

Corporate Tax Registration

The Timeline specified for Registration of Taxable Persons for Corporate Tax under Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses and its amendments.

The Chairman of the Board of Directors of the Federal Tax Authority issued Decision No. 3 of 2024, outlining the approved timeline for registering persons for corporate tax in the United Arab Emirates.

This decision resulted from a comprehensive review of constitutional provisions, federal decree laws, cabinet decisions, ministerial decisions, and delegated authorities. The timeline received ratification during the 30th and 31st meetings held on 29 December 2023 and 23 February 2024, respectively, ensuring compliance with regulatory frameworks governing corporate taxation and administrative procedures in the UAE.

Article 1 – Definitions

The words and expressions in this Decision shall carry the same meaning as defined in Federal-Decree Law No. 47 of 2022 mentioned above, unless the context dictates otherwise.

Article 2 – Registration of Persons for Corporate Tax Purposes

For the purposes of Clause 1 of Article 51 of Federal Decree-Law No. 47 of 2022 mentioned above, any Taxable Person must submit a Tax Registration application following the timelines specified in Articles 3, 4, and 5 of this Decision.

Article 3 – Timeline for the Tax Registration of Resident Juridical Persons

1. A juridical person that is a Resident Person, incorporated or otherwise established or recognized before the effective date of this Decision, shall submit the Tax Registration application, in accordance with the following table:

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Timeline for the Tax Registration of Resident Juridical Persons

2. For the purposes of Clause 1 of this Article, where a juridical person has more than one License, the License with the earliest issuance date shall be used.

3. A juridical person that is a Resident Person incorporated or otherwise established or recognized on or after the effective date of this Decision, shall submit a Tax Registration application, in accordance with the following table:

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Tax Registration of Resident Juridical Persons
Article 4 – Timeline for the Tax Registration of Non-Resident Juridical Persons

1. A juridical person, that is a Non-Resident Person prior to the effective date of this Decision, shall submit a Tax Registration application in accordance with the following table:

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Timeline for the Tax Registration of Non-Resident Juridical Persons – Prior to effective date

2. A juridical person, that is a Non-Resident Person on or after the effective date of this Decision, shall submit a Tax Registration application in accordance with the following table:

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Timeline for the Tax Registration of Non-Resident Juridical Persons – On or After effective date
Article 5 – Timeline for Tax Registration of Natural Persons

A natural person conducting a Business or Business Activity in the State shall submit a Tax Registration application in accordance with the following table:

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Timeline for Tax Registration of Natural Persons
Article 6 – Late Registration for Corporate Tax

Where Persons referred to in Articles 3, 4 and 5 of this Decision fails to submit a Tax Registration application as per the timelines stated above, Administrative Penalties shall be applied in accordance with Cabinet Decision No. 75 of 2023 referred to above.

Article 7 – Abrogation of Conflicting Provisions

All provisions contrary to or inconsistent with the provisions of this Decision shall be abrogated.

Article 8 – Publication and Application of this Decision

The Ministry of Finance recently announced that the UAE government will impose a 10,000 AED fine on businesses that delay registering for corporate tax. However, this new rule will take effect on March 1, 2024. The Federal Tax Authority has set the deadlines for registration; therefore, businesses that miss those deadlines will be subject to the fine. Additionally, this Decision will be published in the Official Gazette and will come into effect as of March 1, 2024.

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