Registration Deadlines: The Federal Tax Authority (FTA) has issued new deadlines for companies to register for Corporate Tax. These deadlines depend on the company's type and situation:
- Resident
Persons: Companies
incorporated or established in the UAE, including those in Free Zones, must
register within 3 months of their incorporation,
establishment, or recognition.
- Non-Resident
Persons:
- Companies
with a Permanent Establishment in the UAE need to
register within 6 months of establishing the Permanent
Establishment.
- Companies
with a nexus in the UAE (e.g., generating taxable
income in the UAE) must register within 3 months of
establishing the nexus.
- Companies
with licenses issued in January or February 2024 need to
register by May 31, 2024, regardless of their type.
- Failing to
register within the specified timeframe can lead to a penalty of AED
10,000.
It's important to understand that
avoiding fines associated with UAE corporate tax is not about finding
loopholes, but about complying with the regulations. Here are some key steps to
ensure compliance and avoid penalties:
1. Timely Registration:
- Ensure you register for corporate tax within the specified deadlines
based on your license issuance month.
- The current deadlines are outlined in the Federal Tax Authority
(FTA) Decision [source].
- Late registration incurs a penalty of AED 10,000.
2. Maintain Accurate
Records:
- Keep detailed and up-to-date records of your finances, including
income, expenses, and tax calculations, as per the Tax Procedures Law and
the Corporate Tax Law.
- Failure to maintain proper records can result in fines of AED 10,000
for the first offense and AED 20,000 for repeat offenses within 24 months.
3. Timely Submission of
Tax Declarations:
- Submit your tax declarations to the FTA within the stipulated
deadlines.
- Late submissions incur monthly penalties, starting at AED 500 for
the first 12 months and increasing to AED 1,000 per month thereafter.
4. Seek Professional
Guidance:
- If you have any complexities regarding UAE corporate tax, consider
consulting with a qualified tax advisor or accountant who can provide
personalized guidance and ensure compliance.
Remember, the UAE government aims to create a fair and transparent tax system. By complying with the regulations, you can avoid unnecessary fines and penalties and contribute positively to the country's economic development.
Additional Resources:
- You can find more information and guidance on the FTA website: https://tax.gov.ae/en/taxes/corporate.tax.aspx
It's
important to note that this information is for general awareness only and may
not apply to all situations. For specific advice regarding your company's tax
obligations, it's recommended to consult with a tax professional.
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