In 2024 UAE continues to be a global hub for different individuals and businesses from different backgrounds. The Corporate Taxation system is very strong there and every individual who is in business is required to fulfil their taxation requirements. Several firms are offering services for Corporate Tax. These people are mainly divided into two categories which are Resident Juridical Persons and Non-Resident Juridical persons. There are different rules for residents and non-residents in UAE.
Resident Juridical Persons (including free zone persons) established or recognized on or after March 1, 2024
There are two categories are:
- A person incorporated, established or recognized under the applicable legislation of another country or foreign territory, and who is effectively managed and controlled in the UAE, the deadline for registration will be 3 months from the end of persons financial year.
- A person incorporated or otherwise established or recognized under the applicable legislation in the UAE, including a Free Zone Person, the deadline will be 3 months from the date of incorporation establishment of recognition.
Non-Resident Juridical Persons Before March 1, 2024
The two categories under this are:
- A person who has a permanent establishment in the country, the deadline will be 9 months from the date of permanent establishment.
- A Non-Resident Juridical person with a nexus in the UAE, the deadline will be 3 months from March 1, 2024.
Non-Resident Juridical Persons on or after March 1, 2024
The two categories are:
- A person who has a permanent establishment in the country, the deadline will be 6 months from the date of starting permanent establishment.
- A Non-Resident Person with a nexus in the UAE, the deadline will be 3 months from the date of establishing the relationship.
Natural Persons Conducting Business or Business Activity
The two categories include:
- A resident natural person who runs a business or carries out business activity during the calendar year 2024 or subsequent years, and whose total turnover generated for each Gregorian calendar year exceed the limit specified in the relevant tax legislation, the deadline will be March 31 of the following Gregorian calendar year.
- A non-resident natural person who runs a business or carries out business activity during the Gregorian calendar year 2024 or subsequent years and whose total turnovers generated exceed the limit specified in the relevant tax legislation, the deadline will be 3 months from the date of fulfilling the conditions set out to determine taxable persons.
How can ebs Chartered Accountants can help you with your Corporate Tax Registration?
ebs Chartered Accountants are leading firms in UAE. They have been providing different services where Corporate Tax is one of their expertise. The team is comprising of experts in this field. They can assist you with your Corporate Tax Registration process seamlessly. If you partner with ebs your registration process and other requirements will be done by the experts ensuring that there are no hurdles, and all the rules and regulations are followed accordingly. Late registration can lead to penalties or even deregistering of your business which is why it is important that tax registration is done on time.
FAQs
Who needs to register for corporate tax in UAE?
Businesses established on or after March 1, including those in free zones, must register for corporate tax within three months of the date of incorporation, establishment or recognition.
Who is the taxable person for corporate tax in UAE?
The Corporate Tax Guide provides key considerations in determining whether a natural person should be subject to Corporate Tax: A natural person who conducts a Business or Business Activity in the UAE is considered a Taxable Person and a Resident Person as defined in the Corporate Tax Law.
Is there corporate tax in UAE?
Yes, the Federal Tax Authority has already introduced the enforcement of corporate tax. The corporate tax registration is done according to the Federal Decree-Law No.47 of 2022.
