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Corporate Tax Registration Deadlines In UAE

Corporate Tax is a direct tax imposed on the income or profits of corporations or other legal entities. 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.

Timeline for Submitting Tax Registration Application for Resident Juridical Persons

• 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.  

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.  

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 AED10,000. 

 

How Smart Book Accounting and Bookkeeping can help?

Smart book accounting and bookkeeping 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 Smart book accounting and bookkeeping 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.