Dh10,000 Fine In UAE: Firms Reminded Of June 30 Deadline For Corporate Tax Registration

(MENAFN- Khaleej Times) UAE residents subject to corporate tax with licences issued in March and April - regardless of the year of issuance - must submit their corporate tax registration application by June 30, the Federal Tax Authority (FTA) reminded on Friday.

For juridical persons (recognised entities with distinct legal personality from its founders, owners, and directors) who did not have a licence by March 1 this year, today (May 31) is the deadline for the submission of corporate tax registration.

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Corporate tax applies to juridical persons incorporated in the UAE and to foreign entities that are effectively managed and controlled in the country. The resident juridical taxable persons cover entities incorporated in the UAE, including free zone businesse and entities established abroad but controlled and managed from the country.

According to the Ministry of Finance, individuals conducting business activities in the UAE will be subject to corporate tax only if their combined turnover exceeds Dh1 million a year.

Companies who miss the deadline for tax registration shall face a Dh10,000 fine, based on a Cabinet decision issued in February this year.

What is corporate tax?

Corporate tax is a form of direct tax levied on the net income or profit of corporations and other businesses.

Khalid Ali Al Bustani, FTA director-general, said“business sectors have been informed of the specified deadlines for different taxpayer categories as part of continuous efforts to strengthen strategic partnerships with taxable persons and provide them with the means to facilitate smooth and accurate tax compliance.”

FTA recently conducted the second phase of its comprehensive campaign to educate business stakeholders about the importance and requirements of corporate tax compliance.

"This is done through in-person and virtual awareness workshops, as well as engagements across economic councils and business assemblies in commercial and industrial areas. The aim is to disseminate tax awareness broadly and interact with all categories of taxpayers,” Al Bustani said.

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