Changes to the time limits for registering a company for corporate tax purposes in the UAE and relevant penalties
28 February 2024
Cabinet Decision No. 10 of 2024 and Federal Tax Authority Decision No 3 of 2024, which alter the time limits for registering for corporate tax purposes in the UAE and establish administrative penalties for violations of the UAE Corporate Tax Law, were published on 22 February.
Your next steps:
The corporate tax registration deadlines set out below differ from those previously published by the Tax Authority. In addition, a penalty of AED 10,000 has been introduced for failing to register on time.
We recommend assessing the need for your company and subsidiaries to register for corporate tax purposes as soon as possible in order to meet the deadlines.
Details:
1. Federal Tax Authority No. 3 of 22 February 2024 “Deadlines for the Registration of Taxpayers for Corporate Tax Purposes”
Your next steps:
The corporate tax registration deadlines set out below differ from those previously published by the Tax Authority. In addition, a penalty of AED 10,000 has been introduced for failing to register on time.
We recommend assessing the need for your company and subsidiaries to register for corporate tax purposes as soon as possible in order to meet the deadlines.
Details:
1. Federal Tax Authority No. 3 of 22 February 2024 “Deadlines for the Registration of Taxpayers for Corporate Tax Purposes”
- Legal entities must apply to register for corporate tax purposes by the following deadlines:
Where a legal entity has more than one licence, the deadline corresponding to the licence with the earliest issue date will apply.
The decision also establishes deadlines for applying for corporate tax registration for the following specific categories of taxpayers:
2. Cabinet Decision No. 10 of 22 February 2024 “Concerning Administrative Penalties for Violations of the Corporate Tax Law”
The amounts of penalties for violations relating to the Corporate Tax Law have been published for the first time. They include the following:
The decision also establishes deadlines for applying for corporate tax registration for the following specific categories of taxpayers:
- Foreign legal entities recognised as UAE tax residents by virtue of being controlled and managed from the UAE,
- Foreign legal entities with a permanent establishment in the UAE,
- Legal entities that have a nexus in the UAE,
- Individuals who carry on business activities in 2024 and later years.
2. Cabinet Decision No. 10 of 22 February 2024 “Concerning Administrative Penalties for Violations of the Corporate Tax Law”
The amounts of penalties for violations relating to the Corporate Tax Law have been published for the first time. They include the following:
AUTHORS:
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