Resident juridical persons with licenses issued in March or April need to register for corporate tax by June 30th, as per FTA.

The Federal Tax Authority (FTA) is reminding Resident Juridical Persons subject to Corporate Tax with Licences issued in March and April, regardless of the year of issuance, to submit their Tax Registration application for Corporate Tax by 30th June 2024 to avoid Administrative Penalties.

This reminder is part of FTA's efforts to encourage Taxable Persons subject to Corporate Tax to comply with FTA Decision No. 3 of 2024 on the Timelines Specified for Registration of Taxable Persons for Corporate Tax under Federal Decree Law No. 47 of 2022 on the Taxation of Corporations and Businesses and its amendments.

The FTA has cautioned that failure to apply for Corporate Tax registration within the specified timelines will result in an Administrative Penalty of AED10,000.

In a press statement issued today, the FTA urged taxpayers to adhere to the timelines specified in FTA Decision No. 3 of 2024, which came into effect on 1st March 2024. The Decision outlines timelines for each category of Taxable Persons subject to Corporate Tax to submit their Corporate Tax registration applications, covering both Resident and Non-Resident Persons.

Furthermore, the FTA called on Taxable Persons subject to Corporate Tax to review the Public Clarification it recently issued regarding the specified timelines for Corporate Tax registration. The Public Clarification provides a comprehensive analysis and examples to understand the timelines applying to various categories of Persons for submitting Corporate Tax registration applications. It also addresses the registration requirements for juridical persons seeking exempt status from the FTA under the Corporate Tax Law.

According to the Public Clarification, Resident juridical persons incorporated or otherwise established or recognized before 1st March 2024 must submit their Tax Registration application for Corporate Tax based on the month of their Licence issuance. If the Taxable Person holds an expired Licence at 1st March 2024, the reference for submission is still based on the month of its original Licence issuance.

For those with multiple Licences, the deadline is determined by the Licence with the earliest issuance date. For juridical persons incorporated or recognized on or after 1st March 2024, they must submit a Tax Registration application within three months from the date of incorporation, establishment, or recognition. Juridical persons recognized under foreign legislation but effectively managed and controlled in the UAE must submit a Tax Registration application within three months from the end of their Financial Year.

The FTA indicated that Corporate Tax registration is available through the "EmaraTax" digital tax services platform, accessible 24/7. The registration process has been simplified into four main steps, which will take approximately 30 minutes. The service is accessible through the following link: https://eservices.tax.gov.ae/. The process will require creating a user account using email and phone number, submitting the required documents, obtaining approval of the registration request, and receiving a Corporate Tax registration number (Corporate TRN) once approved.

To facilitate tax compliance, the FTA allows taxpayers to register through authorized tax agents listed on the Federal Tax Authority's website. The FTA has also facilitated Corporate Tax registration applications through various Government Service Centers across the UAE. Taxpayers can submit their Corporate Tax registration applications with the help of specialists at these centers, which provide electronic services based on high government service standards and are managed by trained and qualified personnel.

The Federal Tax Authority urges Taxable Persons subject to Corporate Tax to review the Corporate Tax Law, Public Clarifications regarding specified timelines for Corporate Tax registration, and related guidelines and executive decisions, available on the FTA official website at: https://tax.gov.ae/en/default.aspx.