UAE FTA Issues New Decree on Registration Deadlines

The UAE FTA has released a new decree No.3, outlining updated registration deadlines for corporate income tax purposes (i.e., deadlines for filing the registration application directly).

Previously, it was clarified that registration must be completed before filing the first profit tax return (for a standard calendar financial year, this meant before 30/09/2025). Now, for UAE-resident entities incorporated or otherwise recognized as established before March 1, 2024 (the effective date of FTA Decree No.3), the registration deadline depends on the month of issuance of the entity’s license (regardless of the year) – see the table above (Article 3.1 of Decree No.3). For example, if the license is issued in January, the registration application must be submitted by 31/05/2024. If there are multiple licenses, the date of the earliest license should be considered.

Separate deadlines are set for:

• UAE-resident entities to be incorporated (recognized as established) on or after March 1, 2024 (if in the UAE under local laws, including free zones – 3 months from the establishment date; if in a foreign jurisdiction, and the “management and control from the UAE” test applies – 3 months from the end of the financial year);

• Non-resident entities with a permanent establishment or nexus in the UAE (see Article 4 of Decree No.3);

• UAE-resident individuals (by March 31 of the following calendar year; if the AED 1 million threshold from activities in the UAE falling under the definition of ‘Business or Business Activity’ is exceeded during 2024, then by 31/03/2025);

• Non-resident individuals in the UAE (no later than 3 months after the date the individual is deemed liable for corporate income tax – if the AED 1 million threshold from the relevant activity is exceeded).

Additionally, today a new Decree No.10 has been issued with updates on administrative penalties (in relation to the previous Decree No.75 of 2023). Specifically, the penalty for late registration is set at AED 10,000.

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