Ensure Compliance with Tax Registration Deadlines
In the complex world of corporate taxation, compliance is key. For businesses, understanding the timelines and deadlines for tax registration is paramount to avoid penalties and ensure smooth operations. In this blog post, we’ll delve into the timeline specified for the registration of taxable persons for corporate tax purposes, as outlined in Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses and its subsequent amendments.
Resident Juridical Persons:
For resident juridical persons, the timeline for tax registration application submission varies based on the date of license issuance. For instance, if your company received its license in February, your new registration deadline is May. Similarly, businesses originally registered in July will have until September to finalize their registration, while those registered in December will need to meet a December deadline. This strategic distribution of deadlines aims to alleviate the burden on businesses and ensure a smooth registration process throughout the year. This means that the clock is ticking, with the first cohort of companies mandated to complete their registration by May 31, 2024, and all businesses expected to be fully registered by the close of December 2024.
Additionally, for resident juridical persons incorporated or established before the effective date of the decision and lacking a license at that date, a three-month window from the effective date of the decision is provided for application submission.
For those incorporated or established on or after the effective date of the decision, the timeline is as follows:
– For persons established under the applicable legislation in UAE, including Free Zone Persons: 3 months from the date of incorporation, establishment, or recognition.
– For persons established under the legislation of a foreign jurisdiction but effectively managed and controlled in UAE: 3 months from the end of the financial year.
Non-Resident Juridical Persons:
Non-resident juridical persons also have specific timelines for tax registration application submission. Those who are Non-Residents before the date of this decision will follow the table below:
Category of Juridical Persons | Deadline for Tax Registration Application |
Person with Permanent Establishment | 9 months from the date of Permanent Establishment existence |
Person with nexus in UAE | 3 months from the effective date of the decision |
For non-resident persons on or after the effective date of the decision:
Category of Juridical Persons | Deadline for Tax Registration Application |
Person with Permanent Establishment | 6 months from the date of Permanent Establishment existence |
Person with nexus in UAE | 3 months from the date of establishment of the nexus |
Natural Persons:
Natural persons conducting business activities in UAE also have timelines to adhere to:
Category of Natural Persons | Deadline for Tax Registration Application |
Resident Person with Turnover exceeding threshold | 31 March of the subsequent Gregorian calendar year |
Non-Resident Person with Turnover exceeding threshold | 3 months from the date of meeting tax requirements |
Understanding these timelines is crucial for ensuring compliance with tax regulations and avoiding potential penalties. It’s advisable for businesses, whether resident or non-resident, to mark these deadlines on their calendars and initiate the tax registration process well in advance to avoid any last-minute hurdles.
At Blackstone Business Consultancy, we specialize in assisting businesses in navigating complex tax regulations and ensuring compliance. We’re here to help you thrive in a compliant and sustainable manner.
