The Federal Tax Authority (FTA) has reminded UAE residents subject to corporate tax, with licenses issued in May (regardless of the year), that they must submit their corporate tax registration application by July 31 to avoid penalties. Starting from March 1, businesses that fail to submit their corporate tax registration applications within the specified deadline will face an administrative penalty of Dh10,000, according to the Ministry of Finance.

The FTA emphasized the importance of taxpayers adhering to the registration deadlines specified for each category, which were previously announced through various official media platforms, including print, visual, and audio media, as well as the FTA’s official social media channels and direct contact with registered company owners in the UAE. Corporate tax applies to juridical persons incorporated in the UAE and to foreign entities effectively managed and controlled in the country. Resident juridical taxable persons include entities incorporated in the UAE, including free zone businesses and entities established abroad but controlled and managed from the country.

According to the FTA, any resident juridical person – incorporated or otherwise established or recognized before March 1, 2024, must submit their tax registration applications for corporate tax based on the month of their license issuance. If a juridical person holds more than one license, the license with the earliest issuance date shall be used. The FTA provides a digital tax services platform called ‘EmaraTax’, available 24/7, which allows unregistered persons to create a new user profile and obtain a tax registration number easily and conveniently via their email and phone number. Taxable persons can also utilize the services of accredited tax agents listed on the FTA’s website and at government service centers across the UAE.

Corporate tax is a form of direct tax levied on the net income or profit of corporations and other businesses. Individuals conducting business activities in the UAE will be subject to corporate tax only if their combined turnover exceeds Dh1 million a year.