Corporate Tax Alert: Timelines for registration

The Federal Tax Authority (FTA) has recently issued a Decision which prescribes the timelines for various taxpayers for submission of registration application. The timelines prescribed are not for obtaining registration but for submission of registration applications. This Decision is effective from 1 March 2024 onwards.

Failure to adhere to the prescribed timelines may warrant administrative penalties of AED 10,000²

The timelines are summarized are as below -

• For resident juridical persons incorporated or otherwise established prior to 1 March 2024

  Date of license issuance irrespective of year of issuance	Deadline for submitting a tax registration application
  1 January – 31 January	31 May 2024
  1 February - 28/29 February	31 May 2024
  1 March – 31 March	30 June 2024
  1 April – 30 April	30 June 2024
  1 May – 31 May	31 July 2024
  1 June – 30 June	31 August 2024
  1 July – 31 July	30 September 2024
  1 August – 31 August	31 October 2024
  1 September – 30 September	31 October 2024
  1 October – 31 October	30 November 2024
  1 November – 30 November	30 November 2024
  1 December – 31 December	31 December 2024
  Where a person does not have a License as on 1 March 2024	3 months from 1 March 2024 i.e. 30 June 2024

  Where a juridical person has more than one license, the License with the earliest issuance date shall be used.

  For example, if a company has two licenses,

  • Commercial business which has issue date of 24 January 2023 and
  • Tourism license which has the issue date of 20 June 2023.

  As per this Decision, the tax registration application may have to be submitted on or before 31 May 2024.

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  1. Federal Tax Authority Decision No. 3 of 2024 – Issued 22 February 2024 (Effective 1 March 2024)
  2. Cabinet Decision No. 75 of 2023

• For resident juridical persons incorporated or otherwise established on or after 1 March 2024

  Category of juridical persons	Deadline for submitting a Tax Registration application
  UAE person incorporated or otherwise established or recognized including a Free Zone Person	Three (3) months from the date of incorporation, establishment, or recognition
  Non-resident person that is effectively managed and controlled in the State	Three (3) months from the end of the Financial Year of such person

• For juridical persons that are non-residents prior to 1 March 2024

  Category of juridical persons	Deadline for submitting a Tax Registration application
  With a PE in the UAE	Nine (9) months from the date of existence of the PE
  With a nexus in the UAE	Three (3) months from 1 March 2024 i.e. 30 June 2024

• For juridical persons that are non-residents on or after to 1 March 2024

  Category of juridical persons	Deadline for submitting a Tax Registration application
  With a PE in the UAE	Six (6) months from the date of existence of the PE
  With a nexus in the UAE	Three (3) months from the date of establishment of the nexus

• For natural persons conducting business or business activity in the UAE

  Category of juridical persons	Deadline for submitting a Tax Registration application
  A resident natural person who is conducting a Business or Business Activity during the period January 2024 to December 2024 (Gregorian calendar) or subsequent years and whose total Turnover derived in such a year exceeds the AED 1 million	31 March of the subsequent Gregorian calendar year. For example, for natural persons conducting business or business activity in 2024, the timeline will be 31 March 2025.
  A non-resident natural person who is conducting a Business or Business Activity during the period January 2024 to December 2024 (Gregorian calendar) or subsequent years and whose total Turnover derived in such a year exceeds the AED 1 million	Three (3) months from the date of meeting the requirements of being subject to tax

Andersen Takeaway

This is a welcome decision that brings clarity and certainty to many businesses on the timelines for applying for registration. It is recommended that each taxpayer analyzes the relevant timelines based on the applicable category in order to comply with the law and steer clear of penalties.