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UAE Corporate Tax Update: Timelines for CT Registration Specified

March 2024

On 27 February 2024, the UAE’s Federal Tax Authority (FTA) has issued Decision No. 3 of 2024 specifying the timelines for Corporate Tax registration with effect from 1 March 2024. The FTA has also amended the Cabinet Decision No. 75 of 2023 to set out the administrative penalty in case of failure to comply with the prescribed deadlines.

 

Summary of prescribed deadlines

Taxable Person Taxable Person existing as on 1 March 2024 Taxable Person existing after 1 March 2024
Residents
Juridical Person
  • 3 months from the date of incorporation or registration in the UAE, including in a Free Zone
  • 3 months from the end of the Financial Year of the person established or registered under the legislation of a foreign jurisdiction that is effectively managed and controlled in the UAE (i.e. cases of foreign entities which are tax residents in the UAE on account of the place of effective management rules)
Natural Person [2]

31 March of the subsequent Gregorian calendar year (i.e. 31 March 2025 for Gregorian calendar year 2024)
Non - Residents [3]
Permanent Establishment (PE) in the UAE

9 months from the date of existence of the PE

6 months from the date of existence of the PE
Nexus [4] in the UAE

31 May 2024

3 months from the establishment of the nexus
Natural Person [2]

3 months from the date of being subject to CT.

 

[1]     Where a Juridical Person has more than 1 license, the license with the earliest issuance date shall be considered for determining the timeline.

[2]     Natural Person conducting business or business activities shall be required to register for UAE CT only where the total turnover derived from such business or business activities exceeds AED 1 million in a Gregorian calendar year.

[3]     Non-resident persons earning only State Sourced Income that do not have a PE or nexus in the UAE do not need to register for UAE CT.

[4]     Non-resident Person shall have a nexus in the UAE if it earns income from any immovable property in the UAE.

 

Administrative penalty

AED 10,000 shall be imposed for failure to submit a CT registration application within the timelines specified.

 

Key takeaways

It is vital for all taxable persons to identify and comply to their respective registration deadlines to avoid non-compliance and the imposition of any administrative penalties.

The above prescribed deadlines are for submission of the CT registration application and not for obtaining the tax registration number.

 

How can we help?

Russell Bedford Dubai can support you throughout your CT registration journey.

Please get in touch with us at info@rb-dubai.com.

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