UAE: FTA has 'set timeframe' for corporate tax registrations

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The UAE Federal Tax Authority (FTA) has set specific timeframes for submitting Corporate Tax registration applications and has announced them across all media channels.

Business sectors have also been informed of the specified deadlines for different taxpayer categories as part of the FTA’s continuous efforts to strengthen strategic partnerships with Taxable Persons and provide them with the means to facilitate smooth and accurate tax compliance, said Khalid Ali Al Bustani, Director General of FTA.

He highlighted that the FTA continuously engages with business sectors to understand their views and suggestions, aiming to achieve the desired objectives of tax legislation while offering the possible reliefs that do not disrupt their activities.

Within timeframes

He emphasised the need for Taxable Persons subject to Corporate Tax to submit their registration applications within the timeframes specified in FTA decision No 3 of 2024, which came into effect on March 1 2024.

This is particularly important for Taxable Persons with licences issued in January and February (regardless of the issuance year) and juridical persons who did not have a licence on March 1, 2024, who must submit their Corporate Tax registration application by May 31, 2024.

He further noted that resident juridical persons subject to Corporate Tax with licences issued in March and April (regardless of the year of issuance) must submit their Corporate Tax registration application by June 30 2024 in accordance with the FTA’s decision.

This statement was made during the opening of a new awareness workshop organised by the FTA in Dubai as part of the second phase of the FTA’s comprehensive campaign to educate business sectors and stakeholders about the importance and requirements of Corporate Tax compliance.

Awareness campaign

The campaign is part of the FTA’s ongoing plans to enhance tax knowledge among Taxable Persons and enable their voluntary compliance with the Corporate Tax regime.

The workshop witnessed a significant and record participation, the largest since the campaign began last year, with 842 stakeholders in the tax sector attending, including 52 senior officials from public and private sector entities.

He said: "The FTA is intensifying its efforts to increase direct communication with business sectors and tax stakeholders across the emirates. This is done through in-person and virtual awareness workshops, as well as engagements across economic councils and business assemblies in commercial and industrial areas. The aim is to disseminate tax awareness broadly and interact with all categories of taxpayers."

He added: "The FTA is committed to increasing knowledge support for all categories of Taxable Persons, especially for Corporate Tax, which was implemented on June 1, 2023. In this context, we launched an awareness campaign last year, featuring both in-person and virtual events on the General Principles of Taxation of Corporations and Businesses, and the second phase began in January and continues until the end of this year. Additionally, we have issued several guides and various awareness publications related to Corporate Tax.”

Free Zones

He emphasised that Free Zones are a vital part of the UAE economy and highlighted that the FTA has recently issued a comprehensive Corporate Tax Guide on for Free Zone Persons, which is an essential resource for businesses operating within these zones. His Excellency added: “The guide highlights the key features of the Free Zone regime available to Free Zone Persons, which are an important part of the UAE's business-friendly environment. The regime is designed to encourage investment and innovation, and the FTA is committed to ensure that guides are clearly understood and easily accessible to all Free Zone Persons.”

FTA clarified that the workshop had a remarkable turnout, reflecting the strong interest from businesses in understanding their obligations under the Corporate Tax Law and ensuring self-compliance. FTA representatives provided a comprehensive overview of the Corporate Tax Law and its implementation mechanisms, highlighting various related topics.

These included identifying Taxable Persons, Taxable Income, Permanent Establishments of Non-Resident Persons, conditions for forming a Tax Group, Tax Loss relief, Business Restructuring Relief, and Transitional Rules.

Standards for applying Corporate Tax in Free Zones were also clarified, along with conditions for considering Free Zone Persons as Qualifying Free Zone Persons to benefit from the 0% Corporate Tax rate.

The steps for Corporate Tax registration, available 24/7 via the "EmaraTax" digital tax services platform, were also explained. Registration can be completed on the platform in a few minutes through easy and clear steps. When needed, Taxable Persons can seek assistance from certified tax agents listed on the FTA’s website. The FTA has also expanded channels for submitting Corporate Tax registration applications through government service centres across the UAE.