The UAE Federal Tax Authority (FTA) has issued Decision No. 3 of 2024 on 22nd February 2024, outlining important deadlines for corporate tax registration. This decision, effective from March 1, 2024, imposes specific timelines for taxable persons and certain exempt entities to complete their registration process.
Article 51 of the UAE CT Law indicates that any Taxable Person should be registered for CT with the FTA within the timeline prescribed by the FTA and obtain a Tax Registration Number. The timeline has now been prescribed in FTA Decision No. 3 of 2024.
Timeline for Resident Juridical Persons:
UAE Resident Entities Incorporated/Established Before March 1, 2024:
| Month of License Issuance
(Irrespective of year) |
Registration Deadline |
| January or February | 31st of May 2024 |
| March or April | 30th of June 2024 |
| May | 31st of July 2024 |
| June | 31st of August 2024 |
| July | 30th of September 2024 |
| August or September | 31st October 2024 |
| October or November | 30th November 2024 |
| December | 31st December 2024 |
| Where a person does not have a licence at the effective date of the FTA Decision | 3 months from the effective date of the FTA Decision (i.e., by 31 May 2024) |
UAE Resident Entities Incorporated/Established on or After March 1, 2024:
| Category of Juridical Person | Registration Deadline |
| Person that is incorporated, established or recognized under UAE laws, including free zone person | 3 months from the date of incorporation, establishment or recognition |
| Person that is incorporated, established or recognized under laws of foreign jurisdiction that is effectively managed and controlled in the UAE | 3 months from the end of the financial year of the person |
Timeline for Non-Resident Juridical Persons:
Non-resident juridical persons with a permanent establishment (PE) in the UAE or a nexus in the UAE fall within the scope of taxable persons for UAE Corporate Tax Law purposes and are required to register for corporate tax in the UAE. The deadlines for the submission of application by non-resident juridical persons to register for corporate tax are as follows:
| Category of Juridical Person | Prior to 1st March 2024 | On or After 1st March 2024 |
| A person that has a Permanent Establishment (PE) in the UAE | 9 months from the date of existence of the PE | 6 months from the date of existence of the PE |
| A person that has a nexus in the UAE | 3 months from the effective date of the FTA Decision (i.e., 31 May 2024) | 3 months from the date of establishment of the nexus |
Timeline for Natural Persons:
A natural person conducting a business or business activity in the UAE is required to submit its corporate tax registration application in accordance with the following timelines.
| Category of Natural Persons | Registration Deadline |
| A resident person conducting a business or business activity during the 2024 Gregorian calendar year or subsequent years whose total turnover derived in a Gregorian calendar year exceeds the prescribed threshold | 31st March of the subsequent Gregorian calendar year |
| A non-resident person conducting a business or business activity during the 2024 Gregorian calendar year or subsequent years whose total turnover derived in a Gregorian calendar year exceeds the prescribed threshold | 3 months from the date of meeting the requirements of being subject to tax |
Consequences for Non-Compliance:
If a person fails to submit the application to register for corporate tax within the prescribed timelines above, the person would be subject to an administrative penalty of AED 10,000 under Cabinet Decision No.75 of 2023.
What should you do next?
All businesses are urged to determine their applicable corporate tax registration deadline, ensuring timely submission for compliance with UAE Corporate Tax Law. Additionally, businesses should assess the impact of corporate tax, exploring potential exemptions or reliefs if not already undertaken.