The UAE Federal Tax Authority has released a new decision regarding the timeframes for corporate tax registration

A juridical person must seek to register within three months, or by May 31, 2024, if they do not already have a license by the Decision’s implementation date of March 1, 2024. In the meantime, the maximum amount of time to submit the Corporate Tax registration application depends on the license that was previously issued if the juridical person is in possession of numerous licenses.

A juridical person that is a Resident Person under the applicable laws in the United Arab Emirates on or after March 1, 2024, including Free Zone Persons, must apply to register for Corporate Tax within three months of the date of incorporation, establishment, or recognition.

A juridical person that is a Resident Person incorporated, established, or otherwise recognized under the applicable laws of a different country or foreign jurisdiction and that is effectively managed and controlled in the United Arab Emirates on or after March 1, 2024, is required by the Decision to apply for registration as a corporation within three months of the conclusion of their fiscal year.

The FTA decision further states that a non-resident person with a juridical entity that has a permanent establishment in the United Arab Emirates before March 1, 2024, must register for corporate tax within nine months of the date the permanent establishment in the UAE became established, while a non-resident person with a nexus in the nation must register by May 31, 2024.

A juridical person that is a Non-Resident Person on or after March 1, 2024, and who has a permanent establishment in the United Arab Emirates (UAE), must register for corporate tax within six months of the establishment’s existence. On the other hand, a non-resident person who becomes a legal entity and has a nexus in the UAE on or after March 1, 2024, must register within a maximum of three months of the date of establishing a nexus in the UAE.

A natural person who is a resident person and who conducts business or business activity during the Georgian calendar year 2024 and who has exceeded the Turnover threshold specified in the applicable tax legislation is required by the terms of the Decision to apply for registration for corporate tax by March 31 of the Gregorian calendar year that follows. In the event that a non-resident natural person conducts business or engages in business activities during the 2024 Georgian calendar year and beyond, and their Turnover surpasses the designated threshold, they will need to apply to register for Corporate Tax within three months of meeting the requirements outlined in order to be considered a Taxable Person.

According to the Cabinet Decision No. 75 of 2023 on Administrative Penalties relating to the application of the Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses and its amendments, the Decision stipulates that administrative penalties will be imposed on Taxable Persons who fail to submit their registration applications for Corporate Tax within the timeframes specified in the FTA’s Decision for each segment of Taxable Persons. 

As part of the second phase of its comprehensive campaign to increase business sector understanding of corporate tax, the FTA stated that it will host a series of webinars on the new Decision. The purpose of the webinars is to inform interested parties and taxable individuals on the steps involved in applying for Corporate Tax registration for each category of taxable person before the deadlines outlined in the Decision.

For the purpose of Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses and its amendments, the Federal Tax Authority has called on all parties involved in putting the Corporate Tax Law into effect to review the law, as well as all pertinent guidelines and manuals available on the FTA website. Among the pertinent implementing decisions are the FTA Decision No. 3 of 2024 on the Specified Timeframes for Taxable Persons Registration.