UAE Corporate Tax Registration Timelines Announced

On the 27th of February 2024, the UAE Federal Tax Authority published Decision No. 3 of 2024 – The Timeline specified for Registration of Taxable Persons for Corporate Tax for the purposes of Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses and its amendments (the “Decision”) with its effective date from the first of March 2024.

The Decision announces deadlines by which particular businesses should obtain their registration numbers for corporate tax purposes. This is a significant change from the common perception that the registration needs to be completed on or before the deadline for submission of the first tax return.

The Decision divides taxpayers into the following categories:

A. Resident legal persons established before the 1^st of March 2024

For those taxpayers, the most important date to determine the deadline for tax registration is the month in which the earliest trade license for a legal person has been issued:

B. Resident legal persons established on or after the 1^st of March 2024

1. 1. 1. A person incorporated or otherwise established or recognized under the applicable UAE legislation (including Free Zone Persons) – should register within three months from the date of incorporation, establishment, or recognition.
      2. A person incorporated or otherwise established or recognized under a foreign jurisdiction but effectively managed and controlled in the UAE – should register within three months from the end of its financial year.

C. Non-resident legal persons that exist before the 1^st of March 2024

1. 1. 1. A person with a permanent establishment in the UAE – should register within nine months from the date of existence of the permanent establishment.
      2. A person that has a nexus in the UAE (i.e. derives income from a real estate located in the UAE) – should register within three months from the effective date of the Decision (i.e. by the 1^st of June 2024).

D. Non-resident legal persons that exist on or after the 1^st of March 2024

1. 1. 1. A person with a permanent establishment in the UAE – should register within six months from the date of existence of the permanent establishment.
      2. A person that has a nexus in the UAE (i.e. derives income from a real estate located in the UAE) – should register within three months from the date of establishment of the nexus.

E. Natural persons carrying the Business or a Business Activity in the UAE

1. 1. 1. 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 AED 1,000,000 – should register by the 31^st of March of the subsequent calendar year.
      2. A 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 AED 1,000,000 – should register within three months from the date in which the threshold was exceeded.

It has to be emphasized that also the catalog of administrative penalties has been changed to complement the Decision. The new Cabinet Decision No. 10 of 2024 introduced an administrative penalty of AED 10,000 if the taxpayer fails to comply with abovementioned deadlines for tax registration.

If you would like more information about this topic then please contact us.

• PATRYK KARCZEWSKI PARTNER pk@amereller.com

DUBAI | AMERELLER | One by Omniyat, 14th Floor | Business Bay | P.O. Box 97706 | Dubai, United Arab Emirates | T +971 4 432 3671

RAS AL KHAIMAH | AMERELLER TAX Consultancy FZ-LLC | Ras Al Khaimah Economic Zone | P.O. Box 16462 | Ras Al Khaimah, United Arab Emirates | T +971 7 204 6255