A new decision of the Federal Tax Authority will come into effect on the first of next March.
Specific periods for registering persons subject to corporate and business tax
Virtual awareness-raising workshops introduce the requirements for committing to submit registration applications for corporate tax before the end of the periods specified under the decision.
Abu Dhabi, February 27, 2024: The Federal Tax Authority has set periods for categories of those subject to corporate tax to submit registration applications with the authority to avoid violating tax legislation.
This came in a new decision issued by the Authority regarding the deadlines for submitting applications for registration of taxable persons under Federal Decree Law No. (47) of 2022 regarding corporate and business tax and its amendments, which entered into force last June, and which applies to tax periods that began on or After June 1, 2023.
The decision of the Federal Tax Authority, which will come into effect as of March 1, 2024, clarified that the periods specified for submitting applications for registration of those subject to corporate tax include legal persons (residents and non-residents), and natural persons (residents and non-residents).
He noted that a resident legal person that was incorporated, created, or otherwise recognized before March 1, 2024; must submit a registration application for corporate tax according to the following:
The Authority stressed the importance of those subject to corporate tax submitting registration applications according to the periods specified in the decision, especially those holding licenses issued during January and February, regardless of the year the licenses were issued, as they must submit registration applications for corporate tax no later than May 31, 2024, to avoid… Violating tax legislation.
According to the decision, if the legal person does not have a license on March 1, 2024; He must submit the registration application within a maximum of three months, i.e. until May 31, 2024. If the legal person has more than one license, the earlier license date is used to determine the maximum time limit for submitting the tax registration application.
For a resident legal person established, established or otherwise recognized under the legislation in force in the country, including a person existing in the free zone on or after March 1, 2024; He must submit a registration application for corporate tax no later than three months from the date of incorporation, creation or recognition. The decision clarifies that a resident legal person who is incorporated, created or otherwise recognized under the legislation of another country or foreign territory and is effectively managed and controlled in the country on or after March 1, 2024; must submit a corporate tax registration application no later than three months from the end of the person’s fiscal year.
According to the decision of the Federal Tax Authority, if a legal person is a non-resident person who has a permanent establishment in the country before March 1, 2024, they must submit a registration application for corporate tax within a maximum of nine months from the date of the presence of the permanent establishment in the country. As for the legal person, if it is a non-resident person who has a connection in the country before March 1, 2024, it must submit a registration application for corporate tax no later than May 31, 2024. As for the legal person, if it is a non-resident person on or after March 1, 2024, and has a permanent establishment in the state, he must submit a registration application for corporate tax within a period not exceeding six months from the date of the presence of the permanent establishment in the state. As for the legal person, if it is a non-resident person with a connection in the country on or after March 1, 2024, it must submit a registration application for corporate tax within a maximum period not exceeding three months from the date of establishing the connection.