The introduction of Corporate Tax in the UAE brings forth new registration and compliance requirements for businesses. It is crucial to understand the associated timelines for registrations and filings to avoid penalties and ensure compliance with the tax laws and regulations.

Key Timelines and Considerations:

Registration:

• There is no registration threshold for UAE Corporate Tax. All Taxable Persons will be required to register for UAE Corporate Tax and obtain a Corporate Tax Registration Number, even if they are already registered for VAT.

• The Federal tax Authority (FTA) has issued decision No. 3 of 2024 (Effective March 1, 2024) specifying timelines for registering taxable persons for UAE CT. The timelines are based on the month of renewal of the trade licenses of the taxable persons irrespective of the year of issuance. This decision now makes the previous timeline specified by Ministry of Finance in the FAQs redundant.

• The decision also stipulates that administrative penalty of AED 10,000 will be imposed on taxable persons failing to submit their CT registration application within the deadlines specified by the FTA.

Tax Return Filing and Payment:

• Taxable Persons are required to file a Corporate Tax Return, irrespective of whether they have made a profit or not.

• Only one UAE Corporate Tax Return will need to be filed per Tax Period. The Corporate Tax Return will be due within 9 months following the end of the Tax Period. No provisional or advance UAE Corporate Tax filings will be required.

• UAE Corporate Tax will need to be paid on or before the end of the 9 months following the end of the relevant Tax Period.

• Similar to other taxes in the UAE (e.g., VAT), businesses will be subject to penalties for non-compliance with the UAE Corporate Tax regime. Applicable penalties can be found in Cabinet Decision 75 of 2023.

Seeking Professional Guidance:

Staying compliant with UAE Corporate Tax laws & regulations can be complex.

Consider seeking assistance from AMA Audit Tax Advisory, we can help you with:

• Registration guidance: Ensure timely and accurate registration for Corporate Tax.
• Tax return preparation and filing: Assist you in preparing and submitting your Corporate Tax Return on time.
• Staying current with regulations: Keep you informed about any updates or changes in UAE Corporate Tax regulations.