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How To Know The Corporate Tax Registration Deadline?

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Corporate Tax Registration

Introduction:

The Corporate Tax (CT) was first issued by the Federal Tax Authority (FTA) in 2022, then it was applicable for enforcement to financial years starting on the date or after 1st, June 2023. That’s why before knowing the corporate tax registration last date, it’s necessary to know the fiscal year starting.

Supposedly, a company financial calendar starts on 1st, June 2023, then it will end on 31st, May 2024, and the corporate tax will be available during this whole time. As well, the first tax return filing will most probably have a deadline at the end of 2024. 

For this reason, Corporate Tax registration is important for minimizing the after-tax enforced on revenues of the companies. As it doesn’t impact the individuals who have direct shareholdings only, but also indirect shareholders possessing private pensions or investment funds.

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Corporate tax registration timeline 

For the sake of evaluating a particular company’s corporate tax registration deadline, it’s required to have a background vision of the timeline for CT registration.  

If a company’s financial year starts at 1st, January 2024 to 31st, December 2024, the business financial calculations will follow this particular timeline:

From 1st, January 2023 To 30 September 2025: A Full Period of Registration (33 Months)

From 1st, January 2024 To 31st, December 2024: The First Tax Period for Registration (12 Months)

From 1st, January 2025 To 30th, September 2025: The Return Filing Period for the Corporate Tax (9 Months)

After 30th, September 2025: No Return Filing is Allowed for the First Tax Period

From 1st, January 2025 To 31st, December 2025: The Second Tax Period for Registration (Another 12 Months)

This information is officially provided on the FTA website, which makes taxable persons have a full calendar from the date of their first corporate tax filing to registration.

Know More About Corporate Tax in Dubai 

Corporate tax registration deadline for return filing

After reviewing the financial timeline for CT registration, it’s relatable now to understand that businesses have an accounting period for registration that’s usually made up of 26 months from the first day of registration. That’s why the due filing date for company accounts is for 9 months only.

From this perspective, it’s understandable that filing returns for corporate taxes is beneficial for businesses if submitted within the mentioned period obligated by the governmental authorities in the UAE.

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Deadline for Filing Company Accounts 2024

According to the Article 51 of Cabinet Decision No. (52) issued and updated in 2022, a taxable person should file his tax returns with the governmental authorities in the business manners prescribed and agreed on. Such that these returns must be filed no later than 9 months from the end of the relevant corporate tax registration period as directed by the authority.

Know More About Corporate Tax in UAE 2024

Filing Date for Company Accounts Example

If taxable persons have a financial year that ends on 31st, December 2024, the registration period for filing returns of corporate tax will be available until 30th, September 2025. Such that this deadline is applied for paying the Corporate Tax in particular terms of the tax registered period in which a return is filed for authorities.

As well, the Ministry of Finance and the Federal Tax Authority fines corporate tax penalties in the UAE if someone doesn’t comply with the corporate tax regulations.

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Corporate tax registration deadline: Eligibility Requirements

Because each business, including Free Zone businesses, needs to register for the Corporate Tax to get a specific Tax Registration Number (TRN). There are specific requirements for applying to corporate tax registration, that are as follows: 

  • Mandatory Registration: this one is for businesses that exceed 375,000 AED for financial revenues per single fiscal year. Such that the CT rate will be 9% as agreed on 1st June, 2023.
  • Registration by the choice of the FTA: this one is for businesses that don’t exceed 375.000 AED for financial revenues for a financial year. These businesses are applied to 0% CT rate.

N.B: Sometimes the Federal Tax Authority requests certain Exempt Businesses to register under the Corporate Tax law to obtain the Tax Registration Number.

Know More About Federal Tax Authority TRN Verification

Companies house accounts filing requirements

There is some required information for filing companies tax returns. These requirements include:

  • The name, address, and the tax registration number. 
  • The registered date on which the corporate tax was made. 
  • The financial statements used for analyzing the fiscal year.
  • The taxable revenue income for a particular tax period. 
  • The amount of tax loss claimed by the taxable person. 
  • The final pay for the corporate tax registered.

Moreover, if the federal authorities require any more information, or documents, for implementing the provisions of the corporate tax law, the taxable person will be required to comply with the authorities.

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Impact of missing corporate tax registration deadline

Because tax registration is a confidential necessity for all businesses to maintain a stable business environment, failing to meet the deadlines mentioned before can lead to a range of unwanted consequences such as:

  • Penalties & Fines: Paid to the UAE tax authorities that varies depending on the delay of the taxes paid.
  • Loss of Good Reputation: Non-complied companies are liable to loss of good standing with the federal tax authorities.
  • Legal Effects: Non-complied businesses with tax regulations can lead to severe legal actions that can lead to the suspension of the business licenses on the long-term.
  • Audits: Scrutiny audits enforced by the UAE tax authorities can tackle business growth on the long-term consequences. 
  • Cash Flow Constraints: Frequent delay for tax paying can lead to demolishing business cash flow from accumulated taxes. 

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Conclusion: Determining corporate tax registration deadline makes the whole deal! 

Although it’s confusing to calculate and administer all business taxes through a particular period of time due to diverse obligations, the financial tax registration timeline can ease the whole process. That’s why it’s required to stay attentive, updated, and following legal regulations to avoid any penalties or unnecessary consequences.

FAQs:

Can I do my own accounts for a limited company?

Although it’s a tough process to conduct individually without the need for professional taxable accountants, but actually you can!

Who are the exemptions to the corporate tax?

It’s a whole list that includes:
Government-Controlled entities. 
Natural resource extracting businesses.
Public Benefit entities.
Public or private pension.
Investment and Social Security funds.

Facilitate your Taxable Accounting Calculations with Alsun Taxation Agency!

Our leading tax and accounting experts at Alsun Taxation can help in an unlimited comprehensive set of corporate tax services including:

  • Corporate Tax Advisory
  • Corporate Tax Planning
  • Corporate Tax Registration
  • Corporate Tax Return Filing
  • Tax Compliance Review
  • Tax  Impact Assessment

As well, being an FTA-Registered Agency and complying with Tax laws and regulations in the UAE is making us an outstanding option for easing the tax registrations procedures!

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