UAE Corporate Tax Registration Deadlines Approaching

The UAE's new #CorporateTax regime is fast approaching, with registration deadlines looming for businesses across the country. The Federal Tax Authority (FTA) recently issued a decision outlining the specific timeframes for #UAECorporateTax registration based on when a company's business license was obtained.

Key highlights of the new Corporate Tax Law include:

• 0% tax rate on taxable income up to AED 375,000

• 9% tax rate on taxable income above AED 375,000

• 15% tax rate for large multinationals meeting certain criteria

The Corporate Tax will apply to #UAEcompanies and other legal entities incorporated or managed in the UAE, natural persons conducting business in the UAE, and foreign companies with a permanent establishment in the UAE. Certain Free Zone entities may qualify for a 0% tax rate on qualifying income if they meet substance and other requirements.

The #UAECorporateTax registration deadlines vary depending on the month a business license was issued, regardless of year:

• Jan-Feb: Register by May 31, 2024

• Mar-Apr: Register by June 30, 2024

• May: Register by July 31, 2024

• Jun: Register by Aug 31, 2024

• Jul: Register by Sep 30, 2024

• Aug-Sep: Register by Oct 31, 2024

• Oct-Nov: Register by Nov 30, 2024

• Dec: Register by Dec 31, 2024

Newly formed entities have 3 months from establishment to register. Non-residents may have 6-9 months depending on circumstances. Missing the registration deadline results in an AED 10,000 fine.

Once registered, businesses must file a Corporate Tax return within 9 months of the end of their tax period and pay any tax owed by this due date. The specific filing deadline depends on the company's financial year:

• Calendar year: File between Jan 1 - Sep 30

• Jun-May year: File between Jun 1 - Feb 28

Late filing penalties start at AED 500/month for the first 12 months, increasing to AED 1000/month thereafter.

With the first filing deadlines less than a year away, #UAEbusinesses should assess their readiness, gather required information, and register with the FTA as soon as possible to avoid penalties. Consult with qualified tax advisors for guidance on your company's specific circumstances and obligations under the new law.

The 9% #CorporateTax rate, while new for the UAE, still remains very competitive compared to global averages. The UAE aims to align its tax system with international standards while preserving its attractive business environment. Stay tuned for further regulations and guidance as the Corporate Tax regime is rolled out.