The UAE Federal Tax Authority (FTA) issued a release on 23 June, 2024, reminding juridical persons licensed in March and April to register for corporate tax by 30 June, 2024.

Previously, the FTA, in a release on 23 May 2024, called for juridical persons licensed in January and February to submit their corporate tax registration applications by 31 May, 2024.

The registration deadline is determined by the month the licence was issued, as established by FTA Decision No. 3 of 2024. The FTA has recently released a public clarification to provide further explanation and clarity regarding the registration timelines.

As part of the Federal Tax Authority’s (FTA) continuous efforts to encourage taxable persons subject to corporate tax to comply with FTA Decision No. 3 of 2024 on the Timelines Specified for Registration of Taxable Persons for Corporate Tax for the Purposes of Federal Decree Law No. 47 of 2022 on the Taxation of Corporations and Businesses and its amendments; the FTA is reminding resident juridical persons that are subject to corporate tax with licences issued in March and April (regardless of the year of issuance) to promptly submit their tax registration application for corporate tax no later than 30 June, 2024, in order to avoid administrative penalties.

Resident juridical persons with a licence issued in March or April, irrespective of the year of issuance of their licence, are required to submit their registration application before 30 June, 2024, to avoid administrative penalties due to late registration.

The FTA cautioned that taxable persons who fail to apply to register for corporate tax within the specified timelines will result in an administrative penalty of AED 10,000.

In a press statement, the FTA urged taxpayers to adhere to the timelines specified in FTA Decision No. 3 of 2024, which came into effect on 1 March, 2024. The decision specifies timelines for each category of Taxable Persons subject to Corporate Tax on when they are required to submit their corporate tax registration applications.

The FTA Decision is inclusive of juridical and natural persons, both resident persons and non-resident persons.

Furthermore, the FTA called on taxable persons subject to corporate tax to familiarise themselves with the public clarification it has recently issued regarding the specified timelines for corporate tax registration. It provides a comprehensive analysis and examples to understand the timelines that apply to various categories of persons to submit their corporate tax registration applications. The public clarification also addresses the registration requirements for juridical persons seeking exempt status from the FTA under the corporate tax law.

According to the public clarification, juridical persons that are resident persons incorporated or otherwise established or recognised prior to 1 March, 2024, must submit their tax registration application for corporate tax based on the month of their licence issuance. If the taxable person holds an expired Licence on 1 March, 2024, the reference for submission is still based on the month of its original Licence issuance.

For those with multiple Licences, the deadline is determined by the Licence with the earliest issuance date. For juridical persons that are incorporated or otherwise established or recognised on or after 1 March, 2024, they must submit a Tax Registration application within three months from the date of incorporation, establishment, or recognition. Juridical persons recognised under foreign legislation but effectively managed and controlled in the UAE must submit a Tax Registration application within three months from the end of their Financial Year.

The FTA indicated that corporate tax registration is available through the “EmaraTax” digital tax services platform, accessible 24/7; the registration process has been simplified into four main steps that will take approximately 30 minutes.