New regulation in the UAE: Companies must register for Corporate Tax within three months from incorporation.
The deadlines for existing companies depend on the incorporation date of the companies.
The penalty for late registration is AED 10,000.
The UAE Federal Tax Authority Decision No. 3 of 2024 “on The Timeline specified for Registration of Taxable Persons for Corporate Tax”, published on 27 February 2024 and effective from 1 March 2024, provides for tighter deadlines than the previous deadlines in place until recently.In detail:- Newly established companies and entities must submit their application for corporate tax registration within three months from incorporation or establishment.
- Existing resident juridical persons must submit their application for corporate tax registration until different dates within 2024, based on their months of incorporation or establishment, as per the following table:
- Non-resident persons with a permanent establishment in the UAE must register within nine months from the date of existence of the establishment.
- Non-resident persons with a nexus in the UAE must register within three months from the effective date of the Decision or the date of establishment of the nexus.
- Natural persons conducting business in the UAE must register for corporate tax until 31 March following the respective Gregorian calendar year, if they exceed the threshold of 1 million AED profit per year.
- The administrative penalty for late registration is AED 10,000.
