FTA Sets June 30, 2024, Deadline For Corporate Tax Registration For Licence Holders

The Federal Tax Authority (FTA) has urged resident juridical persons with licences issued in March and April, regardless of the issuance year, to submit their Corporate Tax registration applications by June 30, 2024. This directive aims to ensure compliance with tax legislation and avoid penalties.

In a recent announcement, the FTA stressed the importance of adhering to Federal Tax Authority Decision No. (3) of 2024. This decision, effective from March 1, sets deadlines for taxpayers subject to Corporate Tax to submit their registration applications. The FTA highlighted that administrative penalties will be imposed on those who fail to comply with these deadlines, as per Cabinet Decision No. (75) of 2023.

The FTA clarified that the specified periods for submitting Corporate Tax registration applications apply to both resident and non-resident juridical persons, as well as natural persons. Resident natural persons conducting business within the UAE during 2024 or subsequent years, with total earned revenues exceeding AED 1 million within a Georgian calendar year, must submit their applications by March 31 of the following year.

For instance, resident natural persons conducting business in the UAE during the Georgian calendar year 2024 and whose total earned revenues exceed AED 1 million must submit their registration applications by March 31, 2025. Non-resident natural persons conducting business activities within the UAE during 2024 or subsequent years, and whose total earned revenues exceed AED 1 million, must submit their applications within three months of meeting the eligibility criteria.

The FTA's announcement underscores the necessity for all eligible entities to adhere to these deadlines to avoid administrative penalties. The authority's decision aims to streamline the tax registration process and ensure compliance across various categories of taxpayers.

This directive is part of a broader effort by the FTA to enhance tax compliance and streamline administrative processes. By setting clear deadlines and imposing penalties for non-compliance, the FTA aims to foster a culture of accountability among taxpayers in the UAE.

The FTA's guidelines are crucial for businesses and individuals operating within the UAE. Adhering to these deadlines will help avoid penalties and ensure smooth operations within the regulatory framework established by the Federal Tax Authority.

With inputs from WAM