The Federal Tax Authority (FTA) has recently made a significant announcement regarding new deadlines for corporate tax registration, with deadlines now being brought forward by more than a year for businesses in the UAE. This move is aimed at streamlining the registration process and ensuring compliance with tax regulations.
Previously, businesses with a December tax year-end had a deadline of September 2025 for registration. However, the new deadlines set by the FTA require the first group of companies to register by May 31, with all companies needing to be registered by the end of December 2024. The FTA has grouped businesses based on the month in which their original license was issued, regardless of the year of issuance.
For example, a business that received its original license in May 2018 now has a registration deadline of July 31, 2024. Similarly, a business that obtained its license in May 2023 also has the same deadline. The year of issuance is irrelevant in this new framework.
Businesses that fail to register by the specified deadline will face a hefty fine of Dhs10,000 for late registration, with no grace periods being provided. The FTA’s decision to bring forward the registration deadlines is aimed at avoiding a last-minute rush of registrations in late 2025, which could overwhelm the system.
John Casey, managing director of TaxReady, a company providing tax and accounting services to SMEs, entrepreneurs, and micro-businesses, believes that the FTA’s proactive approach will help prevent administrative bottlenecks. By distributing the workload evenly throughout 2024, the FTA can focus on processing tax filings starting January 1, 2025, when most companies need to submit their annual filings.
Casey advises businesses to act promptly and ensure compliance with the updated tax deadlines to avoid incurring fines. Every business operating in the UAE is required to register for corporate tax, maintain proper accounting records, and submit an annual tax filing, even if they qualify for an exemption or do not generate revenue.
In conclusion, the revised registration deadlines set by the FTA are aimed at ensuring timely compliance with tax regulations and preventing any last-minute rush of registrations. Businesses are advised to take immediate action to meet the new deadlines and avoid facing fines for late registration. Compliance with tax laws is essential for all businesses operating in the UAE, regardless of their revenue or tax-exempt status.