The UAE government has introduced corporate tax requirements. All operating businesses need to be aware of them. Missing registration deadlines leads to heavy penalties. That’s why it’s important to understand the process and timelines clearly. This guide covers all the info you need. It explains how to register for UAE corporate tax in simple steps.
Understanding the Important Deadlines
The FTA has set different cutoff dates. They are based on when a company got its license. If your business has been functioning since before March 1, 2024, you had to register by May 31 of the same year. For companies that started between March 1 to May 31, the deadline was 60 days from the license date. Finally, businesses licensed after June 1 have 90 days to register on the FTA portal. You must note the deadline for your company based on when you got your license. Failing to meet these timelines will result in a AED 10,000 fine. It will be imposed automatically.
Common Reasons for Missed Deadlines
Several companies inadvertently miss registration due to lack of awareness about the new tax laws. Others get confused regarding their specific cutoff or are unable to update old Value Added Tax (VAT) details on time. Some small startups may be too focused on operations to prioritize compliance. Distance can also cause oversight for foreign-owned businesses based out of freezones.
Real Stories of Missed Deadlines
To better understand the issue, consider two practical examples. A café called “Coffee Buzz” received its license in late April but the owners only learned about corporate tax requirements in mid-June, missing the May 31 deadline. Another case is an IT startup with multiple shareholders abroad operating from Dubai Silicon Oasis freezone. Due to the complexity of international ownership structures, they failed to complete registration on schedule.
Registration Process Step-by-Step
Now let’s look at the simple procedure to avoid any penalties:
- Check your commercial license date on the FTA website to determine the applicable cutoff.
- Gather necessary documents like the license copy, owner passports/Emirates IDs before starting the application.
- Log onto the EmaraTax portal and create an account using email and phone number.
- Your existing VAT details (if any) will auto-populate to fast track the process.
- Update incorrect information and submit before the deadline.
- Instantly receive a Tax Registration Number (TRN) upon approval.
Conclusion
Adhering to the UAE’s corporate tax registration timelines is important to avoid penalties. The process seems simple. But, missing deadlines by overlooking requirements can be costly. This guide aimed to simplify all parts of registration. It covers understanding cut-off dates, getting needed documents, and finishing the online application. By noting possible problems and following the recommended steps, businesses can ensure compliance. Many companies face these issues. It is key to do so in a timely and hassle-free way. Following these guidelines will help you navigate the new tax system. Do reach out if any part of the process remains unclear.
FAQs
A. No, missing the deadline will result in an automatic AED 10,000 fine. However, you can apply for penalty reconsideration on the FTA website after payment, if you have valid reasons for the delay.
A. The Emara Tax system provides an immediate submission confirmation number via email. Keep a copy of this as proof of on-time filing for your records.
A. You need to submit a separate application for each commercial license issued to your company. Ensure all the relevant details are updated individually to avoid errors.
A. You must keep proper books of accounts, invoices, receipts etc. for a minimum period of 7 years to comply with corporate tax regulations.
A. The FTA aims to review registrations within 20 business days. However, some cases involving foreign ownership may take longer due to additional verification required.
