The Federal Tax Authority (FTA) has announced an extension of the deadline for filing tax returns and settling corporate tax liabilities to December 31, 2024. This extended deadline applies to tax periods ending on or before February 29, 2024.
The decision is specifically targeted at taxable entities that were incorporated, established, or recognized on or after June 1, 2023, and have a financial year ending on or before February 29, 2024. These entities typically face a first tax period that is shorter than the standard 12-month duration.
Khaled Ali Al Bustani, Director General of the FTA, highlighted that the authority is aware of the potential difficulties faced by businesses with initial corporate tax periods shorter than a year. He stated, "We have postponed the deadline by which certain taxpayers must file their tax return and settle their corporate tax to alleviate these challenges." Al Bustani further added that this move "underscores our continuous effort to create a supportive and fair tax environment in the UAE, promoting timely compliance while reducing tax burdens."
For instance, if a company was incorporated on June 10, 2023, and had a financial year spanning from January 1 to December 31, its first tax period would be from June 10, 2023, to December 31, 2023.
The FTA issued Decision No. 7 of 2024 on the "postponement of the deadline to file a tax return and settle the corporate tax payable for certain tax periods" in accordance with Federal Decree Law No. 47 of 2022 on the taxation of corporations and businesses and its amendments.
The FTA urges all taxable entities to thoroughly review the corporate tax law and all associated legislation and decisions, which are accessible on its official website.
