As the June 30 deadline approaches for many businesses in the UAE, timely registration is crucial to avoid fines of 10,000 AED.
1. Corporate tax registration in the UAE
The Federal Tax Authority (FTA) urges all UAE resident businesses, especially those with licenses issued in March and April, to ensure they register for corporate tax by June 30, 2024. Failure to meet this deadline will result in a fine of 10,000 AED.
This reminder applies to all affected businesses, regardless of their license issuance year. In a statement released on Sunday, the FTA emphasized that legal entities subject to the new corporate tax law must submit their registration applications in accordance with FTA Decision No. 3 of 2024 regarding corporate tax registration deadlines.
For further guidance and to avoid penalties, businesses are encouraged to act promptly and comply with FTA regulations.
2. Registration for freezone companies
Businesses established in UAE free zones are not subject to corporate tax. However, they are still required to register for corporate tax. The law enacted in June 2023 exempts qualified income of businesses located in UAE free zones from corporate tax.
3. How to register for corporate tax and file returns in the UAE
Businesses must register for corporate tax by creating an account on the UAE tax portal. They must maintain monthly accounting records. For companies established in the mainland, accounts must be audited at the end of each fiscal year. Some free zones have also implemented an audit requirement, although this rule has not been universally applied to all free zones.
By following these steps, you will ensure compliance with UAE tax regulations and avoid penalties. For more information and specific advice, contact our team at contact@picmiddleeast.com.
