UAE FTA urges eligible commercial entities to register for corporate tax by June 30

The UAE's Federal Tax Authority is urging all resident eligible commercial entities to register for corporate tax by June 30 to avoid late penalties.

Juridical persons that are subject to corporate tax with licences issued in March and April, regardless of the year of issuance, must submit their tax registration application by the deadline or face an administrative penalty of Dh10,000 ($2,723), the FTA said in a statement on Sunday.

Juridical persons are those who have permits issued by the authorities to function as commercial entities.

Corporate tax registration is available through the EmaraTax digital tax services platform, with the registration process broken down into four main steps, the authority said.

The FTA's reminder comes after the UAE announced corporate tax registration deadlines for this year for eligible businesses.

Under a decision that took effect from March 1, businesses must register by a certain date depending on the month of their licence being issued, or face a fine of Dh10,000.

The FTA on Sunday also urged those eligible to pay corporate tax to consult the public clarification that the authority has issued regarding the specified timelines.

Those incorporated before March 1, 2024 must submit their corporate tax registration application based on the month of their licence issuance, the FTA said.

For those with multiple licences, the deadline is determined by the licence with the earliest issuance date.

Meanwhile, entities incorporated after March 1 this year must submit their tax registration application within three months from the date of establishment or recognition.

Juridical persons recognised under foreign legislation but effectively managed and controlled in the UAE must submit a tax registration application within three months from the end of their financial year.

The UAE introduced the federal corporate tax with a standard statutory rate of 9 per cent starting from the financial year beginning on or after June 1, 2023.

It brought the income of companies exceeding Dh375,000 within the taxable bracket. Taxable profits below that level will be subject to a tax of zero per cent.

The Ministry of Finance also confirmed in May last year that business owners in the country would be subject to corporate tax only if their turnover in a calendar year exceeds Dh1 million, ensuring that only business or business-related activity income is taxed.