UAE warns businesses of Dh10,000 fine for missing corporate tax registration deadline

The Federal Tax Authority (FTA) has reminded UAE businesses that all entities with licenses issued in May 2024, irrespective of the year of issuance, must submit their corporate tax registration applications by July 31 to avoid penalties.

From March 1, an administrative penalty of Dh10,000 is imposed on businesses failing to register for UAE corporate tax on time, as per the Ministry of Finance. The FTA has stressed the importance of adhering to the registration deadlines specified for each category, which have been announced across various media platforms and through direct communication with registered company owners.

Corporate tax in the UAE applies to juridical persons incorporated within the country and to foreign entities managed and controlled from the UAE. This includes free zone businesses and entities established abroad but controlled and managed from within the UAE.

The FTA has clarified that resident juridical persons, whether incorporated or otherwise recognized before March 1, 2024, must register for corporate tax based on the month their license was issued. In cases where a juridical person holds multiple licenses, the earliest issuance date will determine the registration requirement.

Businesses are urged to comply with these regulations to avoid penalties and ensure smooth operation within the legal framework.