The UAE Federal Tax Authority (FTA) has announced that the deadline for businesses with licenses issued in January and February to register for Corporate Tax purposes ends today. This critical reminder underscores the importance of adhering to the specified registration deadlines to avoid penalties.
Earlier this year, the FTA issued a notification urging businesses to submit their Corporate Tax registration applications by May 31, 2024. This directive is part of FTA Decision No.3 of 2024, which took effect on March 1, 2024. The decision aligns with Cabinet Decision No. 10 of 2024, which imposes administrative penalties on taxable persons who fail to submit their tax registration applications within the prescribed timelines.
What Do the Revised Registration Deadlines Mean for Businesses?
The revised registration deadlines mean that businesses must be more vigilant about their compliance timelines. The FTA has grouped businesses based on the month of their original license issuance, regardless of the year. This new framework significantly advances the deadlines, requiring the first group of companies to be registered by May 31, 2024, with all companies registered by the end of December 2024.
Missing these deadlines will result in a hefty fine of Dhs10,000 for late registration. Furthermore, there will be no grace periods, and fines will be incurred immediately upon missing the deadline.
How to Register for UAE Corporate Tax?
The FTA has introduced a pre-registration system through the EmaraTax platform to initiate the corporate tax registration process. EmaraTax is an online portal designed to streamline various tax-related activities, including registrations, returns, refunds, de-registrations, and payments.
All taxable persons must undergo registration for UAE Corporate Tax and secure a Corporate Tax Registration Number (TRN). To obtain a TRN, businesses need to visit the FTA website and complete the online registration form. The form requires information about the business, such as its legal structure, trade license number, and contact details. Once submitted, the FTA will review the application and issue a TRN if everything is in order.
Documents Required for Corporate Tax Registration
The process for corporate tax registration is conducted online. Here’s a list of documents required:
- Copy of Eligible Trade License
- Passport copy of the owners/partners/shareholders
- Emirates ID of the owners/partners/shareholders
- Memorandum of Association (MOA) or Articles of Association (AOA)
- Contact details of concerned persons
- Company contact details including complete address and P.O. Box
How to Submit the Tax Registration Application?
With your TRN and required documents in hand, you can submit your tax registration application online through the FTA’s portal. The application will require details about your business, including its activities, turnover, and any exemptions or special considerations. Double-check all information before submitting to avoid delays or complications.
Once submitted, the application will undergo a review process by the FTA. It’s important to respond promptly to any requests from the FTA to ensure a smooth approval process. Upon approval, you will receive a tax registration certificate confirming your business is now registered for corporate tax in the UAE.
How to File the Corporate Tax?
The FTA requires businesses to file a single consolidated tax return within nine months of the end of each relevant tax period. Access EmaraTax here.
While the registration process may seem straightforward, businesses often make common mistakes such as providing incomplete or inaccurate information, missing deadlines, and lacking understanding of their tax obligations. By avoiding these mistakes, you can streamline the registration process and ensure a smooth experience.
