Understanding the Deadlines for Corporate Tax Registrations in the UAE: Imposition of a Dh10,000 Fine

The Ministry of Finance specifies that a penalty of Dh10,000 is applicable for registrations submitted after the stipulated deadline. Comprehensive information on the subject is provided below.

Deadlines for UAE Corporate Tax registrations

Authorities in the UAE have established specific deadlines for businesses to submit their applications for Corporate Tax registration. Commencing March 1, 2024, the Federal Tax Authority (FTA) decision has outlined the timeframes within which each category of taxable entities or individuals must register to avoid breaching tax laws.

As per the Ministry of Finance, a Dh10,000 administrative penalty is enforced for registrations submitted after the designated deadline. Presented here is all the essential information you need to be aware of.

What are the updated timelines for registering Corporate Tax?

Entities that are juridical persons (organizations) established, incorporated, or officially recognized before March 1, 2024. According to our research, the registration deadlines are organized according to the initial month of incorporation for businesses, regardless of the year.

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“This standardized application implies that the deadlines remain consistent for businesses established in the same months, irrespective of their year of incorporation.”

Month of licence issuanceDeadline
January or FebruaryMay 31
March or AprilJune 30
MayJuly 31
JuneAugust 31
JulySeptember 30
August or SeptemberOctober 31
October or NovemberNovember 30
DecemberDecember 31

Corporate Tax Registration Timeline in the UAE

As per the FTA decision, if a juridical person lacks a license by March 1, 2024, they are required to apply for registration within three months, i.e. by May 31, 2024. The FTA specifies that if an entity holds multiple licenses, the one issued earliest will be considered.

For resident juridical persons (organizations) established or recognized after March 1, 2024: New resident businesses incorporated after March 1 generally have a registration deadline of three months from their incorporation date.

Here are the deadlines as specified by the FTA:

Persons incorporated or recognized under UAE legislation, including free zone entities: Three months from the date of incorporation, establishment, or recognition.

Persons incorporated or recognized under the laws of another country or foreign jurisdiction: Three months from the end of the financial year of the person.

Non-resident juridical person before March 1:

– Persons with a permanent establishment in the UAE: Nine months from the date of existence.
– Persons with a nexus in the UAE: May 31.

Non-resident juridical person after March 1:

– Persons with a permanent establishment in the state: Six months from the date of existence.
– Persons with a nexus in the state: May 31.

Natural persons (individuals operating in their personal capacity):

– For resident natural persons with a turnover exceeding Dh1 million: Deadline is March 31 of the subsequent year.
– Non-resident natural persons must register within three months of meeting the requirements of being subject to tax.

The deadline for resident natural persons with a turnover surpassing Dh1 million is March 31 of the following year. On the other hand, non-resident natural persons are required to register within three months from the point at which they meet the criteria for being subject to tax.

When and how does the fine apply?

Administrative penalties will be applied to taxable persons failing to submit their Corporate Tax registration applications within the specified timeframes outlined in the FTA’s Decision for each segment.

Businesses give careful consideration to this update. Being prepared to meet the relevant deadlines is crucial to avoid incurring late registration penalties amounting to Dh10,000.

The information provided herein is for the general information of the user and is provided in good faith. We make no representation or provide warranty of any kind, express or implied, regarding the adequacy, suitability, validity, or completeness of the information. Our advice in regard to UAE corporate tax and value added tax is based on our understanding of the relevant laws and the regulations issued. We cannot be held responsible for new regulations and/or interpretation of existing regulations by the FTA that is not consistent with our advice. Under no circumstance shall we have any liability to any user of this information or to third parties for any loss or damage of any kind incurred as a result of the use or reliance of this information.

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