UAE residents with licenses issued in March and April are required to submit their corporate tax registration application by June 30, regardless of the year of issuance, as per the reminder from the Federal Tax Authority (FTA).
For juridical persons who did not have a license on March 1 this year, today (May 31) marks the deadline for the submission of corporate tax registration.
Corporate tax is applicable to juridical persons incorporated in the UAE and to foreign entities effectively managed and controlled in the country. Resident juridical taxable persons encompass entities incorporated in the UAE, including free zone businesses and entities established abroad but managed from the country.
Individuals conducting business activities in the UAE will be subject to corporate tax only if their combined turnover exceeds Dh1 million annually, as outlined by the Ministry of Finance.
Failure to meet the tax registration deadline will result in a Dh10,000 fine for companies, based on a Cabinet decision issued in February this year.
Corporate tax is a direct tax imposed on the net income or profit of corporations and other businesses.
Federal Tax Authority's (FTA) director-general, Khalid Ali Al Bustani, emphasized the concerted efforts to strengthen partnerships with taxable persons and facilitate smooth and accurate tax compliance through informed deadlines for different taxpayer categories.
FTA's recent comprehensive campaign aimed to educate business stakeholders about the significance and requirements of corporate tax compliance through in-person and virtual awareness workshops, engaging with economic councils, and business assemblies in commercial and industrial areas, and broad dissemination of tax awareness to interact with all categories of taxpayers.
