Corporate tax registration is one of the crucial steps for most businesses operating in the United Arab Emirates (UAE). This is mainly to ensure compliance with the ever-evolving taxation regulations in the country and so on. However, one of the key issues in this scenario for businesses is to meet the registration deadlines. When to get registered? And what happens if not registered within the stipulated time for instance? The answer is a hefty penalty of AED 10,000 as per Cabinet Decision No. 10 of 2024. The deadlines vary with the type of business or juridical person, the time of license, and so on. This blog gives key details on corporate tax registration deadlines for various businesses altogether operating in the UAE.
Corporate Tax Registration Deadlines
As per Article 51 of the UAE tax law, a taxable person must register for corporate tax within the stipulated timeframe accordingly. Subsequently, the taxable person will get a tax registration number (TRN). However, there was no timeline initially prescribed by the tax law. Therefore, the FTA Decision No. 3 of 2024 specifies the corporate tax registration timeline for various taxable persons. However, the decision is effective from March 1, 2024, for juridical persons or natural persons with a resident or non-resident status. Thus, meeting corporate tax registration deadlines is critical.
Resident Juridical Persons
The decision specifies that a juridical person who is resident (incorporated, established, or otherwise recognized) before March 1, 2024, must apply to register for CT within the following timeframes.
| Month of License Issuance (year is irrelevant) | Deadline to apply for Corporate Tax registration |
| January or February | 31-May-24 |
| March or April | 30-Jun-24 |
| May | 31-Jul-24 |
| June | 31-Aug-24 |
| July | 30-Sep-24 |
| August or September | 31-Oct-24 |
| October or November | 30-Nov-24 |
| December | 31-Dec-24 |
| When a person does not have a license at the effective date of this decision (1st March 2024.) | Three months from the effective date of this decision, i.e., 1st March 2024. |
*In cases where a juridical person has more than one license, the license with the earliest issuance date shall be used.
Furthermore, a resident person (incorporated, established, or otherwise recognized) after March 1, 2024, must apply to register for CT within the following timeframes.
| Types of Juridical Persons | Deadline to apply for Corporate Tax registration |
| When a taxable person is incorporated or recognized in the state or free zone as per applicable legislation. | 3 months from the date of incorporation or establishment. |
| When a taxable person is incorporated or recognized in the foreign jurisdiction as per applicable legislation but effectively managed and controlled in the state. | 3 months from the end of the financial year of the taxable person. |
Non-Resident Juridical Persons
A juridical person who is a non-resident person before March 1, 2024, must apply to register for CT within the following timeframes.
| Types of Juridical Persons | Deadline to apply for Corporate Tax registration |
| When a person has a permanent establishment in the state. | 9 months from the date of existence of the permanent establishment. |
| When a person has a Nexus in the state. | 3 months from the effective date of this decision, i.e., 1st March, 2024. |
A juridical person who is a non-resident person on or after March 1, 2024, must apply to register for CT within the following timeframes.
| Types of Juridical Persons | Deadline to apply for Corporate Tax registration |
| When a person has a permanent establishment in the state. | 6 months from the date of existence of the permanent establishment. |
| When a person has a Nexus in the state. | 3 months from the date of Nexus establishment. |
Natural Persons
A natural person who is a resident conducting business activity during the Georgian calendar year 2024 and has surpassed the turnover threshold as per the relevant tax law must apply for corporate tax registration by March 31 of the following Gregorian calendar year.
A natural person who is a non-resident person conducting a business or business activity during the Georgian calendar year 2024 and subsequent years and whose turnover exceeds the relevant threshold must apply for corporate tax registration within three months from the date of fulfilling the conditions for becoming a taxable person.
The Penalty
Further, the decision stipulates clearly that failure to comply with the registration timeline will result in penalties. However, these will be according to Cabinet Decision No. 75 of 2023, updated through Cabinet Decision No. 10 of 2024. Accordingly, the decision dictates that an AED 10,000 penalty will apply to the taxable person if they do not meet the corporate tax registration deadlines. Thus, a delay in registration will result in a huge penalty. Therefore, one must consider consulting a tax expert.
Conclusion
In conclusion, understanding and adhering to corporate tax registration deadlines in the UAE is essential for businesses to remain compliant. However, the penalty for missing these deadlines is substantial, making it crucial for all taxable entities. As a result, the corporate tax registration penalty is AED10,000 for a taxable person who fails to apply for registration within the timeline. Thus by staying informed and proactive about registration requirements, businesses can avoid unnecessary penalties and ensure smooth operations. This blog provides a comprehensive overview of these deadlines, thus helping entities understand their tax obligations effectively.
Creative Zone Tax & Accounting (CZTA)
At Creative Zone Tax & Accounting (CZTA), we guide businesses through the complexities of the UAE’s corporate tax landscape. Our expert team is dedicated to ensuring that your company meets all regulatory requirements, including corporate tax registration deadlines, to avoid penalties and optimize your tax obligations. Thus, Contact us today.
