FTA Urges Early Corporate Tax Registration To Avoid Penalties By May 2024

The Federal Tax Authority (FTA) has reiterated its call for juridical persons who are Resident Persons subject to Corporate Tax, with licences issued in January and February (regardless of the year of issuance), and juridical persons that did not have a Licence on 1st March 2024, to promptly submit their Corporate Tax registration application by 31st May 2024. This measure aims to ensure compliance with tax regulations and avoid administrative penalties.

In a recent statement, the FTA emphasised the importance of adhering to FTA Decision No. 3 of 2024 regarding the Timeline Specified for Registration of Taxable Persons for Corporate Tax. The FTA highlighted that, according to Cabinet Decision No. 75 of 2023 on the Administrative Penalties for Violations Related to the Application of Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses, penalties will be imposed on those failing to register within the specified time frames.

The FTA clarified that the registration deadlines apply to both juridical and natural persons, including Resident Persons and Non-Resident Persons. Corporate Tax registration is available at all times through the EmaraTax digital tax services platform, which simplifies the process into four steps that take approximately 30 minutes.

For users already registered for Value Added Tax (VAT) or Excise Tax, the process is straightforward. They can access their existing accounts on EmaraTax, complete the Corporate Tax registration application, submit the required documents, and obtain a Tax Registration Number upon approval. This integration aims to streamline processes for Taxable Persons.

Taxable Persons not previously registered with the FTA for other taxes need to create a new user profile on EmaraTax. This involves setting up an account using an email address and phone number. Once the profile is created, they can complete the registration by specifying the taxpayer, selecting the Corporate Tax registration option, and following the simple registration process.

In its commitment to diversifying service delivery channels and fostering a supportive environment for tax compliance, the FTA has also enabled Corporate Tax registration at various government service centres across the country. These centres provide advanced e-services under the supervision of qualified personnel.

Taxable Persons can submit their applications with assistance from specialists at these centres. After completing the application procedures and verifying data accuracy digitally at the service centre, FTA specialists will review the application internally. The applicant will then receive their Tax Registration Number via email.

Guidance and Compliance

The FTA urged all Taxable Persons to review the Corporate Tax Law, executive decisions, and related guidelines available on its official website. This ensures that all registrants are well-informed about their obligations and can comply effectively with tax regulations.

With inputs from WAM