Dh10,000 fine in UAE: Authority issues reminder for corporate tax registration deadline

UAE residents subject to corporate tax with licences issued in May (regardless of the year of issuance) must submit their corporate tax registration application by July 31 to avoid corresponding penalties, the Federal Tax Authority (FTA) reminded on Tuesday.

From March 1 this year, an administrative penalty of Dh10,000 for late registration of UAE corporate tax is imposed on businesses that do not submit their corporate tax registration applications within the deadline specified by FTA, according to the Ministry of Finance.

The FTA on Tuesday emphasised “the importance of taxpayers adhering to the registration deadlines specified for each category”. These deadlines 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 by direct contact to registered company owners in the UAE.

Corporate tax applies to juridical persons incorporated in the UAE and to foreign entities that are effectively managed and controlled in the country. The resident juridical taxable persons cover entities incorporated in the UAE, including free zone businesses and entities established abroad but controlled and managed from the country.

According to FTA, any resident juridical person – incorporated or otherwise established or recognised before March 1, 2024, must submit their tax registration applications for corporate tax based on the month of their licence issuance. If a juridical person holds more than one licence, the licence with the earliest issuance date shall be used.

Digital tax platform

FTA said taxpayers can use the ‘EmaraTax’, a digital tax services platform available 24/7. It also enables 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 get the services of accredited tax agents listed on the FTA’s website and at government service centres across the UAE.

What is corporate tax?

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.