FTA Calls For Timely Corporate Tax Applications To Avoid Penalties

The Federal Tax Authority (FTA) of the United Arab Emirates has issued a crucial reminder to all resident juridical persons who are subject to Corporate Tax due to their business activities. Specifically, those with licences issued in January and February of any year are mandated to submit their Corporate Tax registration applications by the 31st May 2024 deadline. This directive aims to ensure compliance with the tax law and avoid potential penalties.

This announcement comes in light of FTA Decision No. 3 of 2024, which became effective on 1st March 2024. The decision underscores the necessity for timely submission of Corporate Tax registration applications, as outlined in the tax legislation. Moreover, Cabinet Decision No. 10 of 2024 introduces administrative penalties for any taxable person who fails to meet the registration deadline.

Administrative penalties will be enforced against those who do not adhere to the specified deadlines for submitting their Corporate Tax registration applications. These deadlines apply to both juridical and natural persons, encompassing residents and non-residents alike.

The FTA has encouraged all parties involved in the implementation of the Corporate Tax Law to familiarize themselves with the legislation, as well as all related guides and decisions available on the FTA’s official website. For convenience, stakeholders can access these resources through the following link: https://tax.gov.ae/en/default.aspx.

Registration for Corporate Tax is facilitated through the EmaraTax digital tax services platform, which offers a streamlined process consisting of four steps that can be completed in approximately 30 minutes. Taxable persons already registered for Value Added Tax (VAT) or Excise Tax can expedite their Corporate Tax registration by accessing their existing accounts on EmaraTax.

For those not previously registered for other taxes, creating a new user profile on the EmaraTax platform is required. New users can initiate this process at https://eservices.tax.gov.ae/, using their email address and phone number to create an account. Following account creation, users can select the "Corporate Tax registration" option and proceed with the registration process.

In addition to online registration, the FTA offers assistance through multiple Government Service Centres across the UAE. These centres provide electronic services that adhere to government standards and are staffed by trained specialists to assist with the registration process. Once an application is submitted and verified for accuracy, FTA officers will review it, and successful applicants will receive their Tax Registration Number (TRN) via email.

This initiative by the FTA underscores its commitment to ensuring compliance with UAE tax laws and facilitating a smooth registration process for taxable entities. By adhering to these guidelines, businesses can avoid penalties and remain in good standing with tax authorities.

With inputs from WAM