Issue
Corporate Tax in the UAE is regulated by Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses and its amendments (“Corporate Tax Law”), and its implementing decisions.
The Corporate Tax Law gives the Federal Tax Authority (“FTA”) the authority to prescribe a timeline for any Taxable Person to register for Corporate Tax.
This timeline is prescribed in FTA Decision No. 3 of 2024 on The Timeline specified for Registration of Taxable Persons for Corporate Tax for the purposes of Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses and its amendments (“FTA Decision No. 3 of 2024”).
FTA Decision No. 3 of 2024 is effective from 1 March 2024.
This Public Clarification intends to clarify the timeline when a Taxable Person is required to submit a Tax Registration application to the FTA for Corporate Tax purposes.
Summary
All Taxable Persons are required to submit a Tax Registration application for Corporate Tax to the FTA by no later than the timeline set by the FTA.
The timelines specified in FTA Decision No. 3 of 2024 also apply to juridical persons wishing to apply for the exemption referred to under Article 4(1)(f) to (i) of the Corporate Tax Law.
Therefore, the registration timeline referred to in FTA Decision No. 7 of 2023 is overridden by FTA Decision No. 3 of 2024.
However, this will not affect the timeline to apply for exemption as stated in FTA Decision No. 7 of 2023, which is still applicable.
The timelines specified in FTA Decision No. 3 of 2024 apply equally to juridical persons whose first Tax Period has already begun, irrespective of the person intending to or having ceased Business or Business Activities, or liquidating after the start of their first Tax Period.
Any Taxable Person failing to submit a Tax Registration application within the timeline specified by the FTA will incur an Administrative Penalty of AED 10,000.2
The timeline specified by FTA Decision No. 3 of 2024 differs depending on whether the Taxable Person is:
- A juridical person that is a Resident Person;
- A juridical person that is a Non-Resident Person; or
- A natural person.