On 5 June 2024, the Federal Tax Authority (FTA) emphasized and clarified the deadlines for submitting UAE Corporate Tax Registration application for certain types of Persons regardless of the year their license was issued to avoid violation of tax law.
01. FTA’s Emphasis on Legal Entities with Trade Licenses:
FTA has called on resident juridical persons subject to Corporate Tax and with licenses issued in March and April (irrespective of the license issuance year) to submit their Corporate Tax registration
02. Entity Types to Register by 30 June 2024:
- Limited liability companies (LLCs, PJSCs, PSCs)
- Unlimited liability companies
- Limited liability partnerships
- General partnerships
- Civil partnerships with more than one partner
- Registered Foundations, Trusts and Associations
03. Entity Types That Do Not Need to Register Immediately:
These include:
- Branches of foreign entities
- Foreign companies without a UAE branch whose Dependent Agents (decision making employees) are conducting business autonomously in UAE
- Foreign companies without a UAE branch who have a fixed place of business in UAE. For example:
o A foreign merchant who ships their goods to be displayed and sold using shelf space of a hypermarket such as Carrefour, Nesto, Lulu, etc.
o A foreign exhibitions-organizer who has taken a venue in a UAE hotel on year-round basis to hold various exhibitions;
o A foreign Training service provider company, whose instructors deliver year-round training courses through a UAE University, whether in person or online.
04. FTA’s Clarification on Resident Natural Persons:
These include:
- The FTA clarified that a resident natural person conducting business or business activities within the UAE during 2024 or subsequent years, with total earned revenues exceeding AED 1 million within a Georgian calendar year, must submit their Corporate Tax registration application by March 31 of the following Georgian calendar year.
- For example, the deadline for submitting registration applications for resident natural persons conducting business or business activity in the country during Georgian calendar year 2024, whose total earned revenues for 2024 exceed AED 1 million, is March 31, 2025.
05. FTA’s Clarification on Non-Resident Natural Persons:
The FTA further explained that a non-resident natural person conducting business activities within the UAE during 2024 or subsequent years, whose total earned revenues exceed AED 1 million, must submit their corporate tax registration application within three months of meeting the corporate tax eligibility criteria.
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