25Apr2024

Deadlines for Corporate Tax Registrations UAE: Imposition of a Dh10,000 Fine Explained

Understanding the Deadlines for Corporate Tax Registrations in the UAE: Imposition of a Dh10,000 Fine

The Ministry of Finance specifies that a penalty of Dh10,000 is applicable for registrations submitted after the stipulated deadline. Comprehensive information on the subject is provided below.

Authorities in the UAE have established specific deadlines for businesses to submit their applications for Corporate Tax registration. Commencing March 1, 2024, the Federal Tax Authority (FTA) decision has outlined the timeframes within which each category of taxable entities or individuals must register to avoid breaching tax laws.

As per the Ministry of Finance, a Dh10,000 administrative penalty is enforced for registrations submitted after the designated deadline. Presented here is all the essential information you need to be aware of.

What are the updated timelines for registering Corporate Tax?

Entities that are juridical persons (organizations) established, incorporated, or officially recognized before March 1, 2024. According to our research, the registration deadlines are organized according to the initial month of incorporation for businesses, regardless of the year.

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“This standardized application implies that the deadlines remain consistent for businesses established in the same months, irrespective of their year of incorporation.

Month of licence issuance	Deadline
January or February	May 31
March or April	June 30
May	July 31
June	August 31
July	September 30
August or September	October 31
October or November	November 30
December	December 31

Corporate Tax Registration Timeline in the UAE

As per the FTA decision, if a juridical person lacks a license by March 1, 2024, they are required to apply for registration within three months, i.e. by May 31, 2024. The FTA specifies that if an entity holds multiple licenses, the one issued earliest will be considered.

For resident juridical persons (organizations) established or recognized after March 1, 2024: New resident businesses incorporated after March 1 generally have a registration deadline of three months from their incorporation date.

Here are the deadlines as specified by the FTA:

Persons incorporated or recognized under UAE legislation, including free zone entities: Three months from the date of incorporation, establishment, or recognition.

Persons incorporated or recognized under the laws of another country or foreign jurisdiction: Three months from the end of the financial year of the person.

Non-resident juridical person before March 1:

– Persons with a permanent establishment in the UAE: Nine months from the date of existence.
– Persons with a nexus in the UAE: May 31.

Non-resident juridical person after March 1:

– Persons with a permanent establishment in the state: Six months from the date of existence.
– Persons with a nexus in the state: May 31.

Natural persons (individuals operating in their personal capacity):

– For resident natural persons with a turnover exceeding Dh1 million: Deadline is March 31 of the subsequent year.
– Non-resident natural persons must register within three months of meeting the requirements of being subject to tax.

The deadline for resident natural persons with a turnover surpassing Dh1 million is March 31 of the following year. On the other hand, non-resident natural persons are required to register within three months from the point at which they meet the criteria for being subject to tax.

When and how does the fine apply?

Administrative penalties will be applied to taxable persons failing to submit their Corporate Tax registration applications within the specified timeframes outlined in the FTA’s Decision for each segment.

Businesses give careful consideration to this update. Being prepared to meet the relevant deadlines is crucial to avoid incurring late registration penalties amounting to Dh10,000.

The information provided herein is for the general information of the user and is provided in good faith. We make no representation or provide warranty of any kind, express or implied, regarding the adequacy, suitability, validity, or completeness of the information. Our advice in regard to UAE corporate tax and value added tax is based on our understanding of the relevant laws and the regulations issued. We cannot be held responsible for new regulations and/or interpretation of existing regulations by the FTA that is not consistent with our advice. Under no circumstance shall we have any liability to any user of this information or to third parties for any loss or damage of any kind incurred as a result of the use or reliance of this information.

27Feb2024

UAE Corporate Tax Registration For Small Businesses

UAE Corporate Tax: Navigating Mandatory Registration for Small Businesses

As the annual tax season approaches, small and medium-sized enterprises (SMEs) in the UAE should focus on enrolling for corporate tax. In this period, numerous small business proprietors in the UAE need to give precedence to the registration process for corporate tax. This applies not only to businesses experiencing losses but also to those that are newly established.

Now that the UAE’s initial full-year corporate tax period has commenced, businesses should intensify their auditing procedures. Crucially, they must ensure registration with the Federal Tax Authority from a compliance standpoint.

Whether a business is relatively new or undergoing financial losses, it is imperative to register, regardless of whether their annual profit surpasses or falls below the Dh375,000 threshold.

“There still appears to be uncertainty among some SME owners regarding the timing of corporate tax registration, thinking it can wait until their profits reach the Dh375,000 mark,” mentioned a tax consultant. “This perception is incorrect.”

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The registration for corporate tax has been accessible since June of the previous year. According to UAE regulations, businesses following the calendar year as their financial year will settle their 2024 corporate tax by September 2025.

There exists a program known as ‘Small Business Relief.’

“Businesses must demonstrate their eligibility by submitting tax returns and maintaining necessary records. If they do not reach the Dh375,000 profit threshold, eligible taxable individuals, such as business owners, have the option to choose ‘Small Business Relief’ on their tax return.

“Upon making this selection, they can then complete a simplified tax return and take advantage of the relief.”

Here is information to be aware of regarding Small Business Relief.

1. To qualify for the relief, the business’s revenue must be below or equal to Dh3 million for the most recent and all previous tax periods.

2. If the revenue surpasses Dh3 million, the business can no longer opt for the relief package, even if the revenue falls below the threshold in subsequent tax periods. However, the fundamental requirement remains unchanged – these businesses still must register for corporate tax.

Throughout recent weeks, the UAE tax authorities have conducted workshops and provided regular guidelines on various aspects of corporate tax, set at 9 percent of the annual profit once the Dh375,000 threshold is exceeded.

“The UAE Corporate Tax applies to all businesses ‘incorporated, effectively managed, and controlled’ in the UAE,” stated Ahmed. “This effectively means registration is mandatory, regardless of the profit or revenue a business generates.

“We strongly recommend companies utilize accounting software as part of their best tax practices, though some companies opt for Excel-based accounting. If a business chooses independent auditors, the costs are competitive in the UAE, but the actual expense depends on the volume and complexity of the operations.”

The Value Added Tax (VAT) registration threshold.

UAE businesses have a track record of complying with Value Added Tax (VAT) requirements. Under the VAT registration, companies had the choice to voluntarily register if their taxable supplies reached Dh187,500 and were required to register if it reached Dh375,000.

However, there is a significant distinction – VAT revolves around a tax levied on each transaction, and the rules of compliance are markedly different from those governing corporate tax.

“Even if a new business is currently being established in the UAE, the owner(s) would be wise to register for corporate tax,” advised a consultant. “It’s a crucial step that requires immediate attention.”

27Feb2024

Tax Agent in UAE: Tax Advisory Services Dubai

Do you have a business in the UAE and are unsure whether you need to hire a registered tax agent to assist you in compliance under VAT? Read the article to learn about the responsibilities of a tax agent in the UAE registered with the Federal Tax Authority (FTA).

What Is Tax Agent in UAE?

A tax agent in UAE is a person registered with the tax authorities who represents their clients in front of the tax authorities when they authorize a tax agent to do so. A tax agent takes care of the client’s tax obligations and performs various legal activities prescribed by the Law. A tax agent can help you smooth the VAT process and may act as a mediator between you and the Federal Tax Authority.

What Are the Roles and Responsibilities of a Tax Agent?

Tax agents in the UAE are responsible for assisting their clients in fulfilling their tax-related obligations and helping them to satisfy the provisions of the VAT Law.

So what can they do for you?

They help achieve tax compliance, carry out legal activities, manage financial records related to tax transactions, and prepare and file a VAT return.
Tax agents can provide proper advice and interpretation of the UAE VAT Law.
They can play a key role during the tax audit conducted by the FTA.
Tax agents in the UAE can provide all information, documents, records, and data regarding the Taxable Person they represent if the FTA requests it.
Tax agents can inquire about tax-related matters with the FTA and submit requests for reconsideration of decisions issued by the FTA.
They can also help their clients better plan their taxes and differentiate between the Dos and Don’ts.

Tax agents must maintain the confidentiality of any information obtained in the course of performing their duties. They should refuse to participate in any activity or work, which may result in a breach of any law established by the authority.

Should You Hire a Tax Agent in Dubai?

Paying taxes is compulsory for any business in the UAE, as this revenue is used for the development of the country. Any taxable person in the UAE has the right to appoint a registered tax agent to handle their tax affairs with the authority. But the responsibility of the taxable person in relation to the authority will remain even after appointing a tax agent.

Generally, you may need to hire a tax agent in situations when there is a tax dispute or tax appeal with complexity. But for day to day tax compliance, tax agent services are not necessarily required. In fact, any taxpayer can directly interact with the tax authorities even for tax disputes and appeals without the need for a tax agent.

Still, you may find it challenging to manage tax obligations for your business in the UAE.

Need assistance to ensure your business is compliant with its tax obligations??

Contact us to schedule a free consultation and learn how we can help you manage your company’s taxes.

How to Become a Registered Tax Agent

A person who is registered with the FTA, as well as obtained a license from the UAE Ministry of Economy or from any other relevant authority, can practice as a tax agent in the UAE. A person who wants to register as a tax agent in the UAE has to fulfill the following conditions according to the Law.

They must be of good conduct and behaviour and, in addition to this, they should not have been involved in any criminal or illegal activity.
They should be qualified to perform the functions and duties of the profession as specified in the Executive Regulations. That means a person should hold a certified bachelor or master’s degree in tax, accounting, or Law from a recognised educational institution. If the applicant holds a bachelor’s degree in any other field, they should submit a tax certification from an internationally recognised tax institute.
They should hold a certificate providing evidence of recent relevant experience of at least three years in tax, accounting, or Law.
A person must provide a certificate that proves their verbal and written communication skills in both Arabic and English.
They are required to pass the FTA’s Tax Agent exam.
They must be physically and medically fit to perform the duties required by profession.
A tax agent working in the UAE must also hold professional indemnity insurance.

Any person who wants to be a tax agent and has met those requirements can submit an application and apply for registration. The FTA has the right to request more documents that they consider necessary that can help them to decide whether they should approve or reject the application. The FTA is expected to provide a decision within or after 15 working days from the date when the application is submitted.

Let Beaufort Associates Handle Your Taxation Duties

Beaufort Associates provides management consulting, business advisory, and VAT consultancy services for businesses in different industries in Dubai and the GCC region. We can also help you to establish an effective accounting system and processes.

We have an excellent reputation for delivering world-class services to the business community. With more than 20 years of experience, we can ensure you’ll always get the best guidance in any aspect of managing your business.

Our tax consultants know the intricacies of the UAE tax laws and regulations and can help you navigate an increasingly complex tax environment. They can provide you with professional advice to address your tax-related issues and guide you for better VAT compliance step-by-step.

Our experts will help you manage your taxes using the best strategic tools most cost-effectively. They will help you with up-to-date information regarding any taxation policy changes and ensure that your company meets all regulatory requirements.

If you need additional information about our services, contact us today!

Looking For Top Notch TAX Consultancy Service in Dubai ?

Tax Agent Services

Beaufort Associates is a certified Tax Agent in the UAE. Our team of Tax Experts has successfully managed numerous situations and offered the most appropriate solutions to companies, ensuring that businesses can consistently operate smoothly and efficiently.

Beaufort tax agents can also assist you in comprehending the new Corporate Tax Law, gaining insights into UAE Corporate Tax, and determining the optimal approach for implementing corporate tax in your business.

Beaufort is an FTA Approved Tax Agency in Dubai, and as a registered Tax Agent in the UAE, we guarantee VAT compliance to support all types of businesses.

Advantages of Hiring a Tax Agent in UAE

A tax agent can manage all of a company’s tax-related matters, allowing business owners and key management personnel to concentrate on other crucial responsibilities.

The following are the key advantages of hiring a tax agent in the UAE:

1. Assists in Tax Preparations, Assessments & Representations: A tax agent aids in preparing tax documents, conducting assessments, and representing the company in tax matters.

2. Helps You Save Money and Time: By handling tax affairs efficiently, a tax agent can help save both money and time for the business.

3. Assists in Tax Registration, Implementation, and Compliance: Tax agents provide guidance on tax registration, assist in implementing tax strategies, and ensure compliance with tax regulations.

4. Assists You in Filing Your Returns Timely & Accurately: Tax agents help businesses file their tax returns promptly and with precision, minimizing the risk of errors and penalties.

5. Acts as a Long-Term Advisor: A tax agent can serve as a long-term advisor, offering insights and strategies to optimize the company’s tax position over time.

Tax Agent Services in UAE

It is strongly advisable for companies and individuals subject to taxation to engage the services of a tax agent.

Companies may not always have the focus or time to address their tax obligations, making it highly beneficial to appoint a tax agent to handle tax matters on their behalf.

Our highly experienced and professional tax consultants played a crucial role in the successful implementation of VAT in the UAE.

They have provided invaluable support to the business community in understanding the laws and regulations surrounding taxation.

Beaufort Associates boasts qualified tax consultants in the UAE who possess in-depth knowledge of UAE tax laws and regulations specific to the region.

As one of the leading tax agents in Dubai, we offer the best and top-notch tax agent services in the UAE.

Category Archives: Corporate Tax

Deadlines for Corporate Tax Registrations UAE: Imposition of a Dh10,000 Fine Explained

Understanding the Deadlines for Corporate Tax Registrations in the UAE: Imposition of a Dh10,000 Fine

What are the updated timelines for registering Corporate Tax?

Corporate Tax Registration Timeline in the UAE

Here are the deadlines as specified by the FTA:

When and how does the fine apply?

UAE Corporate Tax Registration For Small Businesses

UAE Corporate Tax: Navigating Mandatory Registration for Small Businesses

There exists a program known as ‘Small Business Relief.’

Here is information to be aware of regarding Small Business Relief.

The Value Added Tax (VAT) registration threshold.

Tax Agent in UAE: Tax Advisory Services Dubai

Tax Agent in UAE: Tax Advisory Services Dubai

What Is Tax Agent in UAE?

What Are the Roles and Responsibilities of a Tax Agent?

Should You Hire a Tax Agent in Dubai?

How to Become a Registered Tax Agent

Let Beaufort Associates Handle Your Taxation Duties

Looking For Top Notch TAX Consultancy Service in Dubai ?

Tax Agent Services

Advantages of Hiring a Tax Agent in UAE

Tax Agent Services in UAE

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