On 27 February 2024, the UAE Federal Tax Authority (FTA) announced that it issued the FTA Decision No. 3 of 2024, in which it outlined the timeframes for Taxable Persons subject to Corporate Tax to apply to register with the FTA and avoid being in violation of tax laws.

The timeframes were outlined in a new Decision issued by the FTA regarding the deadlines to apply for registration under Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses and its amendments, which came into effect in June of last year and applies to Tax Periods starting on or after 1 June 2023.

Effective from 1 March 2024, the new FTA Decision defines timeframes for applying to register for Corporate Tax that apply to juridical persons and natural persons that are either Resident Persons or Non-Resident Persons.

The Decision indicates that a juridical person that is a Resident Person incorporated, established, or otherwise recognized prior to 1 March 2024 must apply to register for Corporate Tax within the following timeframes:

The FTA stressed the importance of submitting Corporate Tax registration applications in accordance with the timeframes specified in the Decision. It added that taxable persons with licenses issued in January and February regardless of the year the license was issued, must submit their Corporate Tax registration applications no later than 31 May 2024, to avoid tax law violations.

According to the Decision, if a juridical person does not have a license by the Decision’s effective date on 1 March 2024, they must apply to register within three months, i.e., by 31 May 2024. Meanwhile, if the juridical person holds multiple licenses, the deadline to apply for registration is based on the prior issued license to determine the maximum timeframe to submit the Corporate Tax registration application.

As for a juridical person that is a Resident Person, including Free Zones Persons, incorporated, established, or otherwise recognized under the applicable laws in the UAE on or after 1 March 2024, must apply to register for Corporate Tax within three months from the date of incorporation, establishment or recognition.

The Decision clarifies that a juridical person that is a Resident Person incorporated, established, or otherwise recognized under the applicable laws of another country or foreign jurisdiction and effectively managed and controlled in the UAE on or after 1 March 2024 must apply to register for Corporate Tax within three months from the end of their Financial Year.

The FTA decision goes on to note that a juridical person that is a Non-Resident Person who has a Permanent Establishment in the UAE prior to 1 March 2024 must apply to register for Corporate Tax within a period of nine months from the date of the existence of the Permanent Establishment in the UAE, whereas a juridical person that is a Non-Resident Person with a nexus in the country must apply to register by 31 May 2024.

A juridical person that is a Non-Resident Person on or after 1 March 2024 and has a Permanent Establishment is required to apply to register for Corporate Tax within six months of the existence of the Permanent Establishment in the UAE, whereas a juridical person that is a Non-Resident Person with a nexus in the country on or after 1 March 2024 must apply to register within a maximum timeframe of three months from the date of establishing a nexus in the UAE.