FTA Urges Resident Juridical Persons to Promptly Register for Corporate Tax

As part of the Federal Tax Authority’s (FTA) ongoing efforts to encourage taxable persons subject to corporate tax to comply with FTA Decision No. 3 of 2024, which outlines the timelines for registering taxable persons for corporate tax under Federal Decree-Law No. 47 of 2022 on the taxation of corporations and businesses and its amendments, the FTA is reminding resident juridical persons with licences issued in March and April (regardless of the year of issuance) to promptly submit their tax registration application for corporate tax no later than 30 June 2024 to avoid administrative penalties.

Resident juridical persons with a licence issued in March or April, irrespective of the year of issuance, are required to submit their registration application before June 30, 2024 to avoid administrative penalties due to late registration. The FTA cautioned that taxable persons failing to register for corporate tax within the specified timelines will incur an administrative penalty of Dh10,000.

In a press statement, the FTA urged taxpayers to adhere to the timelines specified in FTA Decision No. 3 of 2024, which came into effect on March 1, 2024. The decision specifies timelines for each category of taxable persons subject to corporate tax regarding when they are required to submit their corporate tax registration applications. The FTA decision includes both juridical and natural persons, resident and non-resident.

Furthermore, the FTA called on taxable persons subject to corporate tax to familiarise themselves with the public clarification it has recently issued regarding the specified timelines for corporate tax registration.

The public clarification provides a comprehensive analysis and examples to understand the timelines that apply to various categories of persons for submitting their corporate tax registration applications. The clarification also addresses the registration requirements for juridical persons seeking exempt status from the FTA under the corporate tax law.

According to the public clarification, juridical persons that are resident persons incorporated, otherwise established, or recognised before March 1, 2024 must submit their tax registration application for corporate tax based on the month of their licence issuance. If the taxable person holds an expired licence as of March 1, 2024, the reference for submission is still based on the month of its original licence issuance.

For those with multiple licences, the deadline is determined by the licence with the earliest issuance date. Juridical persons incorporated, otherwise established, or recognised on or after  March 1, 2024 must submit a tax registration application within three months from the date of incorporation, 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 FTA indicated that corporate tax registration is available through the "EmaraTax" digital tax services platform, accessible 24/7. The registration process has been simplified into four main steps, taking approximately 30 minutes.

The service is accessible through the following link:https://eservices.tax.gov.ae/; the process requires creating a user account using an email and phone number, submitting the required documents, obtaining approval of the registration request, and receiving a corporate tax registration number (Corporate TRN) upon approval.

To diversify its service delivery channels and provide an environment conducive to tax compliance, the FTA allows taxpayers to register through authorised tax agents listed on the Federal Tax Authority's website.

The FTA has also facilitated corporate tax registration applications through government service centres across the UAE. Taxpayers can submit their corporate tax registration applications with the help of specialists at these centres, which provide services electronically based on high government service standards and are managed by trained and qualified personnel.

The Federal Tax Authority urges taxable persons subject to corporate tax to examine the corporate tax law, as well as all public clarifications regarding the specified timelines for corporate tax registration, and related guidelines and executive decisions, which are available on the FTA official website at:https://tax.gov.ae/en/default.aspx.

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