FTA Advises Resident Juridical Persons To Register For Corporate Tax By End Of November 2024

The Federal Tax Authority (FTA) has reminded Resident Juridical Persons with Licences issued in October and November to submit their Corporate Tax registration by 30 November 2024. This applies regardless of the year the Licence was issued. The FTA emphasised adherence to timelines set in FTA Decision No. 3 of 2024, which aligns with Federal Decree-Law No. 47 of 2022 on Corporate Taxation, effective from 1 March 2024.

According to the FTA, failure to comply with these deadlines will result in penalties as outlined in Cabinet Decision No. 75 of 2023. This decision details administrative penalties for violations related to the application of Federal Decree-Law No. 47 of 2022. It is crucial for Taxable Persons to adhere to the specified timeframes to avoid these penalties.

The FTA clarified that both Juridical and Natural Persons, whether Resident or Non-Resident, must register for Corporate Tax based on when their Licence was issued. For those incorporated before 1 March 2024, registration depends on the month of Licence issuance, not the year. If multiple Licences are held as of this date, the earliest issuance date determines the deadline.

Registration can be completed through EmaraTax, a digital tax services platform available around the clock. The process involves four main steps and takes about 30 minutes. Those already registered for Value Added Tax or Excise Tax can access their accounts directly via EmaraTax to complete Corporate Tax registration and submit necessary documents.

The FTA encourages those yet to register for Corporate Tax to create a new username on EmaraTax at eservices.tax.gov.ae using an email address and mobile number. After account creation, users can identify themselves as a Taxable Person, select ‘Register for Corporate Tax,’ and follow simple steps to complete registration.

Alternatively, registration can be done through authorised Tax Agents listed on the FTA’s website or at government service centres across the country. These centres offer electronic services under government standards and are managed by trained professionals.

Reviewing Corporate Tax Laws

The FTA advises all subject to Corporate Tax to review relevant laws and guidelines available on its website: tax.gov.ae. Understanding these regulations is essential for compliance and avoiding potential penalties associated with late registration or non-compliance.

The streamlined registration process ensures ease of compliance for businesses while maintaining regulatory standards. By following these guidelines, businesses can efficiently manage their tax obligations within the specified timelines.

With inputs from WAM