UAE issues a decision regarding taxes

ahmed atef - | Arab News

The Federal Tax Authority (FTA) has issued new corporate tax registration deadlines that are much earlier than previously anticipated for enterprises. In most cases, the deadlines have been extended by more than a year.

The new staggered deadlines throughout 2024 require the first group of firms to be registered by May 31, with all companies having to be registered by the end of December 2024, in place of the prior deadline of September 2025 (for December tax year-end corporations).

Classification of companies

With this new framework, regardless of the year of license issuance, the FTA has categorized firms based on the month in which their original license was issued.

The FTA has published a timetable indicating the registration deadline that corresponds to the month of license issuing in order to provide a clear picture of the new time periods.

As an illustration, a company whose initial license was granted in May 2018 now has a July 31, 2024, registration date.

The deadline for a business that received its license in May 2023 is July 31, 2024.

The deadline for registering a business that received its license in October 2019 is November 30, 2024.

The illustration highlights the fact that the year of issue is unimportant and that just the month of license issuing is considered.

What implications do businesses face from the updated registration deadlines?

Although the date of registration is affected by this notification, the requirements for registration remain unchanged, encompassing all entities headquartered in the United Arab Emirates. Companies that fail to register by the deadline will be subject to a heavy fine of Dhs 10,000.

Moreover, the FTA stated that there will be no grace periods and that penalties will be applied right away if the deadline is missed.

Understanding the rationale behind the tax changes: John Casey, managing director of TaxReady, a Virtugroup company that offers specialized tax and accounting services to SMEs, entrepreneurs, and micro businesses, stated that "the decision to bring forward the registration deadlines looks to be a well-considered move by the FTA to prevent a last-minute surge of registrations in late 2025, which could overwhelm the system."

The FTA will be able to more equitably distribute the workload by spreading out the deadlines throughout 2024. This will allow them to focus on processing tax filings beginning on January 1, 2025, which is when most corporations must submit their yearly filings.

By taking this preventive measure, administrative bottlenecks that can develop from filing taxes and registering at the same time are avoided.

Take prompt action

Casey counsels firms to act right away and make sure they are in compliance with the revised tax deadlines. Casey has helped thousands of companies register for corporate tax and get their accounting systems up to FTA standards.

Waiting till the last minute to register has no advantages. It's advisable to start now since you will eventually need to complete it. He emphasizes, "Delaying it only raises your risk of incurring the fine." According to the corporate tax rules of the United Arab Emirates, all businesses that are formed or that operate within the nation are required to register for corporate tax, maintain accurate accounting records, and file an annual tax return at the conclusion of their fiscal year.

Even if a firm is registered in a free zone, does not make any money, or is eligible for an exemption, these criteria still apply. Therefore, a business must still go through the compliance procedures to demonstrate its non-taxable status even if it is exempt from corporation tax.

About Author

ahmed atef
ahmed atef
71 Total posts

Read Also

Arab News
A new rise in rents in the UAE

Normally, residents of Dubai who wish to reduce their rent might think about relocating to Sharjah or Ajman; but, due to an increase in demand, prices in these two neighboring emirates are currently rising.

Arab News
UAE issues a decision regarding green jobs for residents and citizens of the country

The Ministry of Human Resources and Emiratization disclosed that the rise in "green jobs" to over 11% of all private sector jobs in the nation was primarily responsible for the labor market's decline in unemployment rates to their...

Arab News
The UAE issues a new decision regarding renewing residency and the possibility of doing a medical examination

Do you belong to the group of people who are extremely busy and lack the time to attend for a medical examination required for the renewal of your resident visa? Don't worry.

Arab News
UAE issues a new decision regarding resettlement and a worker’s permit

As part of its efforts to unify the government bureaucracy zeroing project launched by the UAE government, the Ministry of Human Resources and Emiratization announced the introduction of enhancements in the "worker permit cancellation"...

Arab News
The UAE announces start issuing the UAE passport with a validity of 10 years

The Federal Authority for Identity, Citizenship and Customs in the United Arab Emirates stated that the issuance of the new Emirati passport will officially begin for those aged 21 years and above, starting on Monday, July 8, 2024.

Arab News
The UAE provides new scholarships for resident and foreign students

The digital government in the United Arab Emirates announced new scholarships for resident and foreign students who wish to enroll in public and private universities in the country.

Arab News
Saudi Arabia: Riyadh Air reveals new cabin crew uniforms at Paris fashion event

In anticipation of next year's flights, Riyadh Air has introduced a breathtaking line of uniforms for flight attendants.

Arab News
Saudi Arabia Urges Immediate Evacuation of Citizens from Lebanon

The Saudi Arabian Embassy in Beirut is keeping a careful eye on the developments in southern Lebanon as tensions continue to rise.

Arab News
Air Arabia Launches Sharjah to Athens Flights to Enhance UAE-Greece Connectivity

Sharjah Airport Authority (SAA) and Air Arabia have jointly announced the launch of a new air route connecting Sharjah to Athens, the capital of Greece, marking a significant addition to Sharjah Airport's expanding network of direct travel...

Arab News
Saudi Arabia: Over 13,440 Arrested in Residency and Labor Operations Last Week

Saudi Arabia conducted extensive enforcement operations last week, resulting in the arrest of over 13,440 individuals as part of efforts to curb violations related to residency, labor laws, and border security.

Arab News
Dubai: RTA Launches New Bus Service to Damac Hills 2 Starting July 1

Starting July 1, residents of Damac Hills 2 in Dubai will gain access to a new public bus service aimed at improving local transportation options.

Arab News
UAE: Emirates announces pay hike, education allowance, & longer leaves for staff

In a recent email to its employees, Emirates Group announced a comprehensive enhancement of employee compensation and benefits, set to take effect in July 2024.

Arab News
UAE: Residents Evacuated After Fire Erupts in Sharjah Residential Building

A fire erupted in a residential tower on Jamal Abdul Nasir Street in Sharjah one Sunday afternoon, leading to the immediate evacuation of the entire building. Prompt response from civil defence, ambulance teams, and police was crucial in managing the...

Arab News
UAE announces New Taxi Fare in Ajman Amid Fuel Price Adjustments

On Sunday, the Ajman Transport Authority announced the updated taxi fare rates that will come into effect in July.

Arab News
UAE announces Petrol, diesel prices for July 2024

New prices for gasoline and diesel were published by the United Arab Emirates fuel price committee for the month of July 2024. The updated rates will be in effect starting from July 1. To bring local prices in line with global market trends, these...

Arab News
UAE fines Several trucks 3,000 Dirhams for illegally transporting sand

Ajman fined multiple companies' trucks for illegally transporting sand.

Arab News
UAE: Ajman Introduces Paid Parking on Three key Roads Starting June 29

In a bid to streamline traffic and address parking challenges, Ajman authorities have announced the introduction of paid parking on three significant roads, effective June 29.

Arab News
Abu Dhabi Police Launch a New Initiative with a 35% Discount on Traffic Fines

Abu Dhabi Police have recently rolled out the “Badir and Benefit” initiative, aimed at encouraging drivers to promptly settle their traffic violations through a range of incentives and discounts.

Arab News
Dubai: Japan Halts E-Visas; Residents Plans Disrupted by Appointment Rejections

UAE residents hoping to fulfill their dreams of a holiday in Japan are facing significant obstacles due to recent changes in the visa application process.

Arab News
Dubai court sentences woman to six months in prison for stabbing boyfriend

In a troubling incident on August 20, 2022, at their shared apartment in Dubai’s Al Muraqqabat area, a woman was sentenced to six months in prison for stabbing her boyfriend. The altercation arose from a dispute over his mobile phone, marking a...

Arab News
A UAE court fined a company Dh20,000 for dumping waste illegally in Ajman

Dumping public rubbish and building materials in prohibited areas led to a Dh20,000 penalties for an Ajman enterprise. This shows how serious the enforcement procedures are to avoid future infractions of the same kind.

Arab News
Dubai Courts to close Al Barsha Mall branch starting June 30

Dubai Courts has announced that its Al Barsha Mall branch will cease operations starting June 30.

Arab News
Saudi Arabia Reduces Friday Sermons Duration until Summer ends

Saudi Arabia has announced that the sermons preceding the Friday noon prayers at Islam's two holiest mosques will be shortened until the end of summer to alleviate the burden on worshippers amidst the kingdom's extreme heat.

Arab News
UAE Shortens Friday Sermons to 10 Minutes Amid Summer Heat

From June 28 until October, authorities in the UAE have implemented a new policy to limit Friday sermons to 10 minutes.

Arab News
Saudi Arabia Introduces E-Visa for Esports World Cup 2024 Ticket Holders

Saudi Arabia announces a 90-day visa program for attendees of the Esports World Cup 2024, aiming to boost tourism and the gaming sector.

Arab News
UAE detained Man in Ajman for distributing fake automotive oil from known brands

An Asian national was apprehended by the Ajman Police during a recent investigation on suspicion of dealing in and stockpiling knockoff lubricants bearing the names of well-known brands around the world.

Arab News
UAE introduces 8 visa types allowing entry into Emirates for different durations

The UAE's digital government outlined in a recent report that residence visas for foreigners are granted upon legal entry into the country via entry permits, enabling them to reside and work for specific periods, extending up to 10 years...

Arab News
UAE clarifies entry permit application process post residence visa cancellation

Expatriates residing in the UAE often find themselves traveling frequently for business and personal reasons, sometimes extending their trips beyond six months.

Dubai court fined a School employee Dh2,000 for taking unauthorized photo