The business landscape in the UAE is undergoing a significant shift with the introduction of corporate tax. This new tax regime comes with important deadlines for businesses to register, and these deadlines can vary depending on your company’s specific situation. The new corporate tax system is designed to be both effective and competitive, aligning with international standards. This will make the UAE an even more attractive location for businesses and investors. The tax system will also support the UAE’s development goals and strategic plans. Additionally, it fulfils the country’s commitment to tax transparency, which helps to prevent unfair tax competition and fosters good relations with developed nations.
While free zones are amping up their offerings to attract new businesses, all companies in the UAE, including those in free zones like Abu Dhabi Global Market (ADGM) and Dubai International Financial Centre (DIFC), need to be aware of the corporate tax registration requirements.
Key Points for Existing Businesses:
- Registration Corporate Tax Deadlines Based on License Issuance Date: The deadline for existing companies to register for corporate tax depends on when their licenses were issued. You can find the specific timelines outlined in the Federal Tax Authority (FTA) Decision.
- Multiple Licenses: If your company holds multiple licenses, the earliest issuance date dictates your registration deadline. Ensure you submit your application within the allotted timeframe to avoid penalties.
Deadlines for New Businesses (including Free Zones):
- Three Months After Incorporation: New companies incorporated on or after March 1st, 2024, including those in free zones, have three months from their incorporation date to register for corporate tax. Be aware that your registration might fall before June 30th as the deadline for these cases is strictly three months from the date your license was issued.
For example: If your business is incorporated on March 3rd, 2024, your Corporate Tax deadline is on June 3rd, 2024.
- Foreign Companies: Foreign companies effectively managed and controlled within the UAE after March 1st, 2024, need to register within three months of their financial year-end.
Upcoming Corporate Tax Deadline – June 30th, 2024:
- Don’t Miss Out: This deadline applies to all businesses with licenses issued in March or April of any year prior to 2024. Failing to register by June 30th can result in a penalty of AED 10,000.
The takeaway
The introduction of corporate tax in the UAE necessitates action from businesses. Familiarize yourself with the deadlines based on your company’s specific situation and ensure timely registration to avoid penalties. While free zones are offering attractive incentives to draw in new businesses, remember that corporate tax registration applies to all companies in the UAE.
MS for ensuring hassle-free Corporate Tax registration
We know that the deadline assessment will be a daunting task, but MS is here to help you through the process. Our team of experts will assess your specific situation to ensure you meet the correct deadline. We’ll guide you through every step of the process, ensuring all documentation is accurate and filed on time. MS is here to make your Corporate Tax registration smooth and ensure compliance, sparing you from additional penalties for late registration. Take action now to ensure your business stays compliant and penalty-free.