Firms reminded of June 30 deadline for corporate tax registration

UAE corporate tax registration deadline

The Federal Tax Authority (FTA) has issued a reminder to UAE businesses about the approaching deadline for corporate tax registration. Companies with licences issued in March and April, regardless of the year, must submit their corporate tax registration applications by June 30. For juridical persons—entities with distinct legal personalities that did not have a licence by March 1—May 31 marks the deadline for submission.

Corporate tax in the UAE applies to juridical persons incorporated within the country and foreign entities effectively managed and controlled from the UAE. This includes entities incorporated in the UAE, free zone businesses, and entities established abroad but managed from within the country. Individuals conducting business activities in the UAE will only be subject to corporate tax if their combined annual turnover exceeds Dh1 million.

Failure to meet the tax registration deadline will result in a Dh10,000 fine, as stipulated by a Cabinet decision issued in February this year.

Corporate tax is a direct tax levied on the net income or profit of corporations and other businesses. FTA director-general Khalid Ali Al Bustani emphasized that business sectors have been informed about the deadlines for different taxpayer categories as part of efforts to strengthen strategic partnerships with taxable persons and facilitate smooth and accurate tax compliance.

The FTA has been proactive in educating business stakeholders about corporate tax compliance through various initiatives. Recently, they conducted the second phase of a comprehensive campaign, which included in-person and virtual workshops, as well as engagements with economic councils and business assemblies in commercial and industrial areas. The goal of these efforts is to disseminate tax awareness broadly and ensure that all categories of taxpayers are well-informed.

Businesses are urged to take immediate action to meet the registration deadlines to avoid penalties and ensure compliance with the new corporate tax regulations. Staying updated with the latest FTA announcements and participating in awareness workshops can help businesses navigate the requirements effectively.

For further details, businesses can visit the FTA website or contact their local tax advisors to ensure they meet the compliance requirements before the June 30 deadline.