On the 22.02.2024 the Federal Tax Authority issued Decision No. 3 of 2024 (Decision) on The Timelines for Registration of Taxable Persons for UAE Corporate Tax purposes. The Decision is made effective starting 01.03.2024. The decision outlines the timelines applicable for all Taxable Persons, whether resident or non-resident, to submit the corporate tax registration application. Non-compliance with the stated timelines of the Decision would result in a penalty of AED 10,000.00.
The timelines applicable for Taxable Persons (Legal Persons or Natural Persons) are as follows:
- Resident Legal persons incorporated with a trade license before 01.03.2024 will be required to register as per the date of license issued.
- Resident Legal persons incorporated on or after the 01.03.2024 are to register within 3 months from date or incorporation.
- Legal persons incorporated in a foreign jurisdiction and who are Effectively Managed and Controlled in UAE are to register within 3 months from end of Financial Year applicable to the person.
- If a Resident natural person conducting business or business activity exceeds AED 1 million in the calendar year 2024 or subsequent years, the person must register by 31.03 of the subsequent year.
- A Non-Resident natural person conducting business or business activity which exceeds AED 1 million in calendar year 2024 or subsequent year is required to register within 3 months from date of meeting the requirement of being subjected to tax.
- A Non-Resident Legal Person before 01.03.2024 must register as follows:
- In the case of PE: 9 months from the date of existence of PE
- In the case of Nexus: 3 months from the date of this decision (01.03.2024)
- A Non-Resident Legal Person on or after 01.03.2024 must register as follows:
- In the case of PE: 6 months from the date of existence of PE
- In case of Nexus: 3 months from the date of establishment of nexus
