May 31st Corporate Tax Filing Deadline for Early 2024 Licensees

The Federal Tax Authority (FTA) has issued a reminder to all resident corporations that were granted business licenses in January or February of 2024. These companies must file their Corporate Tax applications by May 31st, 2024, to comply with UAE tax regulations.

The FTA implemented Decision No. 3 of 2024 on March 1, 2024, which established deadlines for various business entities to register for Corporate Tax. The emphasis for resident corporations centers on the date their licenses were issued. For those licensed in January or February, regardless of the year, the deadline falls on May 31st, 2024.

Businesses are encouraged to submit their applications electronically via the FTA’s online portal. This method is designed to ensure a streamlined and efficient filing process. The FTA recommends that companies initiate the filing process as soon as possible to avoid any last-minute complications.

The UAE implemented a corporate tax system earlier this year. The tax applies to any business activity conducted within the UAE mainland, excluding those operating in Free Zones. The standard corporate tax rate is set at 9%. However, there are exemptions for certain qualifying businesses with a taxable profit below AED 375,000.

The FTA has advised businesses to carefully review the Corporate Tax legislation to determine their filing obligations. The Authority’s website offers a wealth of information on Corporate Tax, including guidance on registration, calculating taxable profits, and filing procedures. Additionally, the FTA has established a customer service hotline to address any inquiries businesses may have regarding Corporate Tax.

Failing to register for Corporate Tax by the designated deadline can result in administrative penalties. The UAE Cabinet Decision No. 10 of 2024 outlines the specific penalties for non-compliance. Businesses are urged to familiarize themselves with the potential consequences of late registration to ensure they remain compliant with UAE tax regulations.

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