Important Deadline for New Companies in UAE in 2024

Taxable entities like you must register under Article 51 of Federal Decree-Law No. 47, known as the “Taxation of Corporation and Businesses” (UAE Corporate Tax Law).” The Federal Tax Authority (FTA) set the registration timelines for all taxable persons. 

The FTA has issued Decision No. 3 of 2024, which officially begins on 1st March 2024. This decision mentions the corporate tax registration timeline for taxable persons under the Federal-Decree Law No. 47 of 2022, concerning corporation and business taxation. Today, we will disclose the important deadlines for companies registered in the United Arab Emirates (UAE). In addition, we will try to determine your company deadline in March 2024 in UAE. 

Decision No. 3 of 2024 - Overview

The Federal Tax Authority (FTA) has specified a timeframe for the taxable person subject to the Corporate Tax to apply to register their business with the FTA and prevent violating tax laws in this nation. 

The timeframe was outlined in the new Decision issued by the Federal Tax Authority (FTA) regarding the deadline to apply for registration under the Federal Decree-Law No. 47 of 2022 on the taxation of business and corporations plus its amendment, which comes into effect in June of last year and applies to Tax Period starting on or from 1st June 2023.  

Effective from 1st March 2024, the new Federal Tax Authority (FTA) decision defines the timeframes or deadlines to apply for the registration of Corporate Tax that applies to a natural person or juridical person, that a Resident Person or Non-Resident Person. 

Essential deadlines for companies who registered in UAE after 01, March 2024

For all taxable entities, it's mandatory to register with the Federal Tax Authority (FTA) by certain deadlines. However, the deadlines may differ based on the type of taxable person. We have outlined the top types of taxable persons and their deadlines to register in the UAE below:

1. Resident Juridical Person

Resident Juridical Persons include Offshore Companies and Free Zone Persons under the legislation in the UAE. However, the deadlines for Resident Juridical Persons differ based on the following factors:

➦ Juridical Person established before 1st March 2024

A Juridical Person recognized before 1 March 2024 must submit the tax registration application based on the month of license issuance under the deadline specified in the FTA Decision No. 3 of 2024, whether the business license is valid or expired. The following is the list of deadlines for Juridical Person established before 1st March 2024:

Suppose your company possessed a license that expired on 31 March 2022. In that case, you must submit the tax registration application referencing the month of license issuance. Although your license has expired, the application for registration must reference April with the submission deadline of 30 June 2024. 

➦ Juridical Person established after 1st March 2024

A taxable registration application must be submitted within three months of the incorporation of a company or Juridical person for a Juridical person newly incorporated in the UAE on or after 1st March 2024. 

➦ Juridical Person with POEM before 1 March 2024

A Juridical Person recognized abroad but managed and controlled (POEM) is considered a Resident Jurisdiction Person under the CT Law. If such a person doesn’t hold a license as of the effective date of Decision No. 3 of 2024, it’s mandatory to submit the Tax Registration application within three months from 31 May 2024.   

➦ Juridical Person with POEM after 1 March 2024

A Juridical Person incorporated under foreign legislation but with the POEM on or after 1 March 2024 must submit the taxation registration application within three months from the end of its financial year. 

2. Non-resident Juridical person

A Juridical Person considered to be a Non-Resident Person on or after 1 March 2024 and has PE must apply to the Corporate Tax within six months of the existence of a Permanent Establishment or PE in the UAE. On the other hand, a Juridical Person is a Non-Resident Person with a Nexus whose income is derived from immovable property must apply for Corporate Tax registration within 3 months of incorporating a nexus in the nation. 

3. Natural Person

The deadline for a natural person to submit the Corporate Tax differs based on different factors. The deadline to submit a Tax Registration application is by 31 March of the Subsequent Gregorian calendar year that begins from 1st January 2024 for a Resident Natural Person with a turnover exceeding AED 1 million during a Gregorian calendar year in the United Arab Emirates (UAE). 

A Non-Resident Natural Person with a business turnover exceeding AED 1 million during the Gregorian calendar year must apply for registration within 3 months of fulfilling the requirements for which need to pay the corporate tax in the UAE. 

Key Takeaways

1. As per the FTA Decision No. 3 of 2024, Resident Juridical Persons must register for Corporate Tax in the United Arab Emirates (UAE) based on their license issuance date, with specific deadlines for licenses issued prior to 1 March 2024. 
2. Non-resident Juridical Persons with a permanent establishment (PE) must register for Corporate Tax within six months, while those people with a nexus must register within 3 months. 
3. Resident Natural Person must register for corporate tax if their turnover surpasses AED 1 million by 31 March 2024. On the other hand, a Non-Resident Natural Person with an exceeding turnover of AED 1 million within three months. 

How can Flyingcolour Tax Consultant help you?

The Federal Tax  Authority (FTA) has introduced a new decision mentioning the new deadlines for registering after 1 March 2024. However, the deadlines for registration differ based on the type of company, but registering is a must to avoid hefty penalties. Flyingcolour Tax Consultants can help you register your company for Corporate Tax in the UAE. Plus, our experts will assist you in determining the exact deadlines for submitting the tax registration application in the UAE.

To learn more about UAE Deadline for Companies Registered After March 1, 2024, book a free consultation with one of the Flyingcolour team advisors.

Disclaimer: The information provided in this blog is based on our understanding of current tax laws and regulations. It is intended for general informational purposes only and does not constitute professional tax advice, consultation, or representation. The author and publisher are not responsible for any errors or omissions, or for any actions taken based on the information contained in this blog.