Corporate Tax is the tax directly levied on the income and profits earned by corporations and any other legally constituted entities. Corporate Tax is a major issue in Dubai and there are several Corporate Tax experts to satisfy these obligations for various businesses. UAE is renowned for its regulations and laws and every company must comply with the rules. There is a certain timeframe that has been formulated by law in Dubai. This explains the different categories and their timeframe to be registered for corporate tax registration in 2024. 

The Timeline for Submitting Tax Registration Application for Resident Juridical Persons 

As per the latest law and its modifications that have been passed, there is a distinct timeline for everyone who is in various categories to file their corporate tax by 2024. The timeline is based on the date of issuance of the license regardless of the year it was issued. The table below can help you to understand this timeline. 

• If a person who is a legal entity holds multiple licenses and has diverse licenses, the one with the date of issuance that is closest to the time of issuance will be utilized. 

If the applicant is a legal resident who was recognized on the same day or later than the date of their decision, they must submit a tax registration application like the following categories. 

• Three months after the day of acknowledgment for an individual who is recognized under the laws of the state in force and includes the free zone individual. 
• Three months beginning at the end of the fiscal year of a person in question for the person who has been recognized under the applicable laws of the jurisdiction of a foreign country. 

The Timeline for Submitting Tax Registration Application for Non-Resident Juridical Persons 

If a legal person is not resident at the time of the date of effective the decision, they should submit their application to the following categories. 

• Nine months after the date of a permanent establishment if the person is a permanent establishment in the state. 
• Three months from the date of effective decision in case a person is found to have a connection to the state. 

If a person who is a legal entity is a non-resident as of or following the date of the decision, application registration will be processed compatible with the following categories. 

• Six months from the first day of establishing of permanent establishment when the person is a permanent establishment within the state. 
• Three months from when the person was notified of the establishment of the nexus if the person is a resident of the state. 

The Timeline for Submitting Tax Registration Application for Natural Persons 

• 31 March is a subsequent Gregorian calendar year when a Resident who is engaged in a business or Business Activity in the 2024 Gregorian calendar year, or any subsequent years where the total amount of turnover from the Gregorian calendar year is greater than the threshold that is specified in the applicable tax law. 
• Three Months from the day of completing conditions of being tax-exempt when a non-resident is engaged in an activity for business or profit in the 2024 Gregorian calendar year, or the following years in which the total turnover derived from the Gregorian calendar year is greater than the threshold set in the applicable tax law. 

Importance of Timely Registration for Corporate Tax 

In the realm of corporate governance, in Dubai, UAE, the registration of tax-paying corporations as well as compliance with regulations and rules is of paramount importance. Federal Decree-Law No. 47 of 2022 forms essential to the corporate tax law in Dubai. It is a requirement for corporate tax professionals to promptly comply with the legislative mandate regarding corporate tax from the tax authorities of federal. If you fail to adhere to the rules in Dubai there could be sanctions for your company that could hurt your tax company and the associated partners. Based on the new guidelines of the authority, in the event of a late registration for corporate tax, administrative penalties will be implemented. If you do not meet the requirements to register for corporate tax it could not only compromise the credibility of the tax system for corporate entities in Dubai but could also cause problems for your business which could result in the complete shutdown of your business since these laws are considered carefully from authorities of the UAE government. Conformity to Decree-Law No. 47 guarantees transparency when it comes to corporate taxation. If you fail to register your business on time, there can be a penalty of AED 10,000. This can also result in the deregistration of your company. 

How can ebs Chartered Accountants benefit? 

ebs Chartered Accountants are experts when it comes to corporate tax advisors. They are renowned for their excellent service and prompt delivery. They have a staff who are well-trained and have expertise in the corporate tax law in the UAE. Employing ebs as a partner in registering your corporation tax can save you the hassle of registering your tax and will be made sure that the process is quick and efficient to assure that your business will not be penalized.