Corporate Tax is a direct tax imposed on the income or profits of corporations or other legal entities. Corporate Tax in Dubai holds an important position and there are a few corporate tax consultants to fulfill these requirements for different businesses. UAE is known for its laws and regulations, and it is obligatory for each firm to comply with these regulations. There is a specific timeline which has been made under laws in Dubai, this explains about different categories and their timeline to register for corporate tax in 2024.
The Timeline for Submitting Tax Registration Application for Resident Juridical Persons
According to the recent laws and its amendments, there is a specific timeline for each person that falls in different categories to register for their corporate tax in 2024. This timeline depends on the date of License Issuance irrespective of year of issuance. The table below will help you understand this timeline.
| Date of License Issuance irrespective of year of issuance | Deadline for submitting 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 |
| If the person did not have a license at the effective date of this decision | 3 months after the effectiveness of the decision implemented |
- When a juridical person has more than one license, the license with the earliest issuance date will be used.
If a person is a resident juridical person who has recognized on the same date or after the date of decision will submit their tac registration application according to these categories.
- 3 months from the date of recognition for a person who has recognized under applicable legislation of state, including the free zone person.
- 3 months from the end of financial year of the person for a person who has recognized under applicable legislation of foreign jurisdiction.
The Timeline for Submitting Tax Registration Application for Non-Resident Juridical Persons
If a juridical person who is non-resident before the effective date of decision, they will submit application according to following categories.
- 9 months from date of existence of permanent establishment if a person has permanent establishment in state.
- 3 months from effective date of decision if a person has nexus in the state.
If a juridical person is a non-resident on or after the effective date of decision, the application registration will be done according to following categories.
- 6 months from the date of existence of permanent establishment if a person has permanent establishment in the state.
- 3 months from the date of establishment of the nexus if a person has nexus in the state.
The Timeline for Submitting Tax Registration Application for Natural Persons
- 31 March of subsequent Gregorian calendar year if a Resident Person who is conducting a Business or Business Activity during the 2024 Gregorian calendar year or subsequent years whose total Turnover derived in a Gregorian calendar year exceeds the threshold specified in the relevant tax legislation.
- 3 months from the date of meeting requirements of being subject to tax if non-resident person who is conducting a Business or Business Activity during the 2024 Gregorian calendar year or subsequent years whose total Turnover derived in a Gregorian calendar year exceeds the threshold specified in the relevant tax legislation.
Importance of Timely Registration for Corporate Tax
In the world of corporate governance in Dubai, UAE, corporate tax registration and compliance with rules and regulations timely holds paramount importance. Federal Decree Law No. 47 of 2022 is an important part of corporate tax laws in Dubai. It is mandatory for the corporate tax consultants to timely register with the legislative mandate on corporate tax by the federal tax authority. If you do not adhere to the laws in Dubai there will be penalties for your business that can have a negative impact on your corporate tax firm and associated partners. According to the recent rules by the authority if there is late registration for the corporate tax the administrative penalties will be applied. If you fail to comply with the obligation of registration of corporate tax it will not only undermine the integrity of the corporate tax system in Dubai but also create a problem for your business, this might lead to complete closure of your business as these laws are taken very seriously by the UAE government. Compliance with Decree Law No. 47 ensures transparency in the corporate taxation process. If anyone fails to register on time, there will be a fine of AED 10,000. This can also lead to the deregistering of your business.
How ebs Chartered Accountants can help?
ebs Chartered Accountants are specialists when it comes to corporate tax consultants. They are known for their great service and timely delivery. They have a team who are well trained and have the knowledge of legal requirements of corporate tax in UAE. Hiring ebs as your partner for registering your corporate tax will save you from hassle and it will be ensured that the process is streamlined and on time, so your business does not face any penalties.
FAQs
Are there any penalties for late Corporate Tax registration?
Yes, there may be penalties for late Corporate Tax registration. These penalties could vary depending on the duration of the delay and the specific regulations set forth by the UAE tax authorities. It’s essential to register within the stipulated timeframe to avoid such penalties.
How does timely registration contribute to operational efficiency for businesses?
Timely registration allows businesses to align their internal processes and systems in advance, minimizing administrative hurdles and delays. This proactive approach enhances operational efficiency and ensures smooth business operations.
Can companies seek assistance or guidance for the registration process?
Yes, companies can often seek assistance or guidance from tax advisors, consultants, or legal experts familiar with the tax regulations in UAE. Additionally, the tax authority may provide resources, such as FAQs, guidelines, or helplines, to assist businesses with the registration process.