Late registration penalties and deadlines for UAE corporate tax
The Federal Tax Authority (FTA) has established specific deadlines for corporate tax registration in the UAE. Companies incorporated before March 1, 2024, must adhere to staggered deadlines based on their commercial license issuance date. Key deadlines include:
- License issued between January 1 and February 28/29: Register by May 31, 2024.
- License issued between March 1 and April 30: Register by June 30, 2024.
- License issued between May 1 and May 31: Register by July 31, 2024.
- License issued between June 1 and June 30: Register by August 31, 2024.
- License issued between July 1 and July 31: Register by September 30, 2024.
- License issued between August 1 and September 30: Register by October 31, 2024.
- License issued between October 1 and November 30: Register by November 30, 2024.
- License issued between December 1 and December 31: Register by December 31, 2024.
For entities established after March 1, 2024, the deadline is three months from the date of establishment.
If an entity holds multiple licenses, the registration obligation is determined according to the license with the earliest date of issuance.
Foreign companies that are effectively managed and controlled from the UAE must register within 3 months from the end of their respective financial year.
Consequences of missing the registration deadline
Failing to meet the registration deadlines results in significant penalties. Companies may face fines and further legal implications. The FTA emphasizes strict adherence to the deadlines to avoid unnecessary financial and legal burdens.
Penalties for late registration
Penalties for late registration can include:
- Financial fines: Companies may incur fines. The Ministry of Finance imposed a 10,000 AED fine that comes into effect in the case of late registration.
- Operational disruptions: Delays in registration can lead to complications in business operations and potential legal challenges.
Steps to ensure timely registration
- Document preparation: Gather all necessary documents early, including commercial licenses and identification documents.
- Consultation with experts: Engage with tax and business consultants to ensure compliance with FTA regulations.
- Regular monitoring: Keep track of deadlines and ensure all submissions are completed well before the final date.
You can complete the registration process through the EmaraTax portal. You can either seek help from experts or register on your own using our comprehensive guide.
Who should comply with the registration deadlines
All taxable persons subject to UAE corporate tax are required to submit a tax registration application. This applies to both legal entities and individuals, whether resident or non-resident for corporate tax purposes. Read more for detailed information on who falls under the FTA's corporate tax registration obligation.
Why timely corporate tax registration in the UAE is crucial
Meeting the corporate tax registration deadlines in the UAE is crucial to avoid penalties and ensure smooth business operations. Companies should prioritize timely registration to comply with FTA requirements and avoid potential financial and legal repercussions.