CT Registration : Act now to avoid penalty of AED 10,000

• Article 51 of the Federal Decree Law No. 47 of 2022 titled “Taxation of Corporations and Businesses” (UAE CT Law) provides that a Taxable Person shall have to compulsorily take registration under this Law. This law further empowers Federal Tax Authority (FTA) to prescribe timeline for any taxable person to register for Corporate Tax;
• FTA has issued Decision No. 3 of 2024 which prescribes the requisite timelines. This decision is effective from 1 March 2024 and states that a juridical person which is a resident incorporated or otherwise established or recognized prior to 1 March 2024 shall submit the registration application in accordance with the timelines dependent on the date of issuance of license irrespective of the year of issuance.
• For the corporations where the ‘date of issue of license is falling with in the period 1st March to 30th April the submission deadline is 30th June 2024.
• For the corporations which have been newly incorporated or established after 1st March 2024 in the UAE are required to submit such application within 3 months from the date of their incorporation or establishment.

Key Considerations arising out of the recently issued FTA’s Corporate Tax Public Clarification

• Offshore Companies will be treated as ‘Resident Juridical Persons’ and have to submit application for CT registration;
• The timelines specified in aforesaid decision apply to corporations whose tax period has already begun, irrespective that they are intending to or have ceased to carry business or business activities or liquidating after the start of their first tax period;
• Corporations whose ‘Trade License’ is expired but has not been cancelled shall submit an application for CT registration by reference to the month of their original license issuance;