deadlines for uae corporate tax registration-3a global corporate services provider-uae

UAE Corporate Tax Registration Deadlines Announced

A new administrative penalty has been established by the UAE Ministry of Finance on 27/02/2024 to ensure that corporate tax registration deadlines are met. This major change demonstrates the government’s resolve to improve tax governance and guarantee prompt compliance with regulations.

Fine for delays in corporate tax registration

The order specifies that companies would be fined AED 10,000 in the event that their corporate tax(CT) registration is delayed. The purpose of implementing this penalty is to discourage noncompliance with CT regulations and to ensure that firms immediately meet their registration obligations.

Cabinet Decision

Cabinet Resolution No. (10) of 2024, which amends the schedule of infractions and administrative fines set by Cabinet Decision No. 75 of 2023, authorizes the implementation of this penalty. These amendments are specifically targeted at addressing violations related to the application of Federal Decree-Law No. 47 of 2022 on the taxation of corporations and businesses.

Effective Date

The resolution will become effective on March 1, 2024, marking a significant step toward enforcing tax compliance more strictly. To avoid the AED 10,000 fine, business in the UAE should be proactive and register on time.

Why This Order?

To further its goal of encouraging openness and responsibility in tax administration, the UAE government has launched this regulatory effort. The government’s goal in instituting fines for late CT registration is to promote compliance and protect the transparency of the tax system.

How To Ensure Compliance?

To ensure they are in compliance with regulations, businesses should review the Federal Tax Authority’s registration dates and act accordingly. To better understand the complicated rules of tax compliance and how to avoid penalties, companies can consult with 3A Global corporate services provider’s tax advisors.

The UAE’s commitment to improving tax governance and establishing itself as a business-friendly location is evident in the decision of the Ministry of Finance to implement a penalty for delayed CT registration. Companies will be more likely to pay their fair share of taxes and aid in the nation’s economic development and stability if strict enforcement procedures are in place.

How to Determine Corporate Tax Registration Deadlines?

Corporate tax registration deadlines are determined by the month of any year in which licenses are issued. The deadline to apply for corporate tax registration is as follows.

Month of License IssuanceDeadline to Apply for Corporate Tax Registration
January or FebruaryMay 31, 2024
March or AprilJune 30, 2024
MayJuly 31, 2024
JuneAugust 31, 2024
JulySeptember 30, 2024
August or SeptemberOctober 31, 2024
October or NovemberNovember 30, 2024
DecemberDecember 31, 2024

For example,
If a business license was issued in February 2015, then the deadline for corporate tax registration is May 31, 2024

The penalty for delayed CT registration was recently announced by the Ministry of Finance. This article provides vital information on compliance deadlines based on the month of license issuing and summarizes the details of that notice.

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