Do you understand how timely tax registration can benefit your business?
In the UAE, corporate tax registration is crucial for businesses as it not only helps meet the legal requirements of the land but also ensures a healthy business ecosystem.
Corporate tax registration in the UAE entails meeting specific timelines. Businesses must understand these timelines to stay compliant and avoid legalities and penalties. This helps businesses run their operations smoothly and develop a trusting relationship with the regulatory authorities.
Keep reading to learn more about the UAE Corporate Tax Registration scenarios and the timelines that can affect your business.
In the UAE, corporate tax registration is crucial for businesses as it not only helps meet the legal requirements of the land but also ensures a healthy business ecosystem.
Corporate tax registration in the UAE entails meeting specific timelines. Businesses must understand these timelines to stay compliant and avoid legalities and penalties. This helps businesses run their operations smoothly and develop a trusting relationship with the regulatory authorities.
Keep reading to learn more about the UAE Corporate Tax Registration scenarios and the timelines that can affect your business.
Understanding UAE Corporate Tax Registration
The corporate tax in the UAE came into effect on June 1, 2023, as per the UAE Corporate Tax (CT) Law. The crucial element of the CT Law was the CT registration for businesses to obtain their registration number. Businesses needed to get their registration before filing their first tax returns.
Later, the Federal Tax Authority released Federal Tax Authority Decision No. 3 of 2024, which mentioned the specific timelines for applying for CT registration, effective March 1, 2024.
Historically, the UAE has primarily been a tax-free country, attracting investors and businesses worldwide. The new CT Law was launched to help the country’s business ecosystem match international tax standards and diversify its revenue streams, thus creating an equitable commercial environment for sustainable growth.
The new law makes registration mandatory for businesses of all sizes and scales within the country and for foreign entities with a permanent establishment in the country.
The process entails providing the tax authorities with all relevant details about the business, such as financial statements and shareholder details. Specific timelines apply, and businesses need to register within the given deadlines. If not, there could be penalties. It is also a must for the business to stay compliant with the UAE taxation laws.
Later, the Federal Tax Authority released Federal Tax Authority Decision No. 3 of 2024, which mentioned the specific timelines for applying for CT registration, effective March 1, 2024.
Historically, the UAE has primarily been a tax-free country, attracting investors and businesses worldwide. The new CT Law was launched to help the country’s business ecosystem match international tax standards and diversify its revenue streams, thus creating an equitable commercial environment for sustainable growth.
The new law makes registration mandatory for businesses of all sizes and scales within the country and for foreign entities with a permanent establishment in the country.
The process entails providing the tax authorities with all relevant details about the business, such as financial statements and shareholder details. Specific timelines apply, and businesses need to register within the given deadlines. If not, there could be penalties. It is also a must for the business to stay compliant with the UAE taxation laws.
Timelines for Corporate Tax Registration
- General Timelines
- Businesses Licensed Before March 1, 2024
The applicable dates are as follows –
| License Issuance Date (Irrespective of the year) | Tax Registration Application submission deadline |
|---|---|
| January 1 – 31 | May 31, 2024 |
| February 1 – 28/29 | May 31, 2024 |
| March 1 – 31 | June 30, 2024 |
| April 1 – 30 | June 30, 2024 |
| May 1 – 31 | July 31, 2024 |
| June 1 – 30 | August 31, 2024 |
| July 1 – 31 | September 30, 2024 |
| August 1 – 31 | October 31, 2024 |
| September 1 – 30 | October 31, 2024 |
| October 1 – 31 | November 30, 2024 |
| November 1 – 30 | November 30, 2024 |
| December 1 – 31 | December 31, 2024 |
Foreign entities with POEM or a Place of Effective Management in the country need to register within three months before the end of the fiscal year.
2. In the case of Branch Offices, PE of Non-Resident, or any other form of Non-Resident Juridical entities established/recognised before March 2024, have the following timelines –
| Type of Juridical Persons | Tax Registration Application submission deadline |
|---|---|
| With a PE in the UAE | 9 months from the date of PE |
| With a nexus in the UAE | 3 months from the effective decision date |
| Type of Natural Persons | Tax Registration Application submission deadline |
|---|---|
| A Resident Person with business in the 2024 Gregorian calendar year or the following years with a total Turnover in the year more than the specified threshold as per the tax legislation. | March 31 of the next Gregorian calendar year |
| A Non-Resident Person with business in the 2024 Gregorian calendar year or the following years with a total Turnover in the year more than the specified threshold as per the tax legislation. | 3 months from being eligible for applicable taxes as per the taxation laws. |
- Businesses Licensed on or After March 1, 2024
| Type of Juridical Persons | Tax Registration Application submission deadline |
|---|---|
| With a PE in the State | 6 months from the PE existence date |
| With a nexus in the State | 3 months after the establishment of the nexus |
- Compliance
- Financial Planning
Steps to Register for Corporate Tax
- Preparation
- Application Process
- Post-Registration
To summarise, meeting the UAE corporate tax registration timelines helps businesses avoid penalties while keeping them compliant with the laws. This enables effective financial planning and tax planning. It is important to prepare the documents and complete the registration process accurately.
You must also review your registration status promptly to ensure the timelines are met. If you need help meeting the timelines, contact Consultzone, experts in the field.
