FTA Decision No. 3 of 2024
Federal Tax Authority (FTA) Decision No. 3 of 2024 (Effective March 1, 2024) was issued on February 22, 2024.
The deadline for registering as a taxable person for corporate tax under Federal Decree-Law No. 47 of 2022 on the Taxation of Businesses and Corporations, as well as its revisions:
- A juridical person that is a Resident Person, incorporated or otherwise established or recognized prior to the effective date of this Decision, shall submit the Tax Registration application, in accordance with the following table:
| Date of License Issuance, regardless of Issuance Year | The deadline for submitting an application for tax registration |
|---|---|
1st January – 31st January |
31st May 2024 |
1st February-28/29th February |
31st May 2024 |
1st March-31st March |
30th June 2024 |
1st April-30th April |
30th June 2024 |
1st May-31st May |
31th July 2024 |
1st June-30th June |
31st August 2024 |
1st July – 31st July |
30th September 2024 |
1st August-31st August |
31st October 2024 |
1st September-30th September |
31st October 2024 |
1st October-31st October |
30th November 2024 |
1st November-30t November |
30th November 2024 |
1st December-31st December |
31th December 2024 |
If an individual is not in having a license on the day this decision takes effect | (3) three months from the effective date of this Decision |
- In cases where a legal entity possesses several licenses, the license with the earliest date of issuance will be utilized.
- In line with the following table, a juridical entity that is a Resident Person and has been incorporated, created, or recognized on or after the date of this decision must submit an application for tax registration.
| Group of individuals with legal rights | The deadline for submitting an application for tax registration |
|---|---|
A person who is recognized or incorporated in accordance with the State’s applicable laws, including a Free Zone Person |
Three months post the date of establishment, recognition, or incorporation |
A person who is effectively managed and controlled in the State and who is incorporated, established, or recognized under the appropriate laws of a foreign jurisdiction |
Three months from the completion of the individual’s financial year |
Timeline for Non-Resident Judicial Persons' Tax Registration
Before the effective date of this decision, a juridical person who was a non-resident person must submit a tax registration application in according to the following table:
| Group of individuals with legal rights | The deadline for submitting an application for tax registration |
|---|---|
An individual with a permanent establishment within the State |
Nine months from the Permanent Establishment’s founding date |
An individual with a *nexus to the State |
Three months after this Decision’s effective date |
* If a juridical person, who is not a resident, receives revenue from any Immovable Property located in the state, such person will have a nexus to the state.
When this decision comes into effect, each juridical person that qualifies as a non-resident person must submit a tax registration application shown in the following table:
| Group of individuals with legal status | The deadline for submitting an application for tax registration |
|---|---|
An individual with a permanent establishment within the State |
Six months after the Permanent Establishment’s founding date |
An individual connected to the State |
Three months after the nexus was established |
Timeline for Natural Persons' Tax Registration
A natural person operating a business activity in the state needs to file an application for tax registration using the format shown in the following table:
| Category of Natural Persons | The deadline for submitting an application for tax registration |
|---|---|
A resident person operating a business or engaging in business activities in 2024 or subsequent years whose total turnover generated in Gregorian calendar year exceeds the threshold given in the applicable tax laws |
31 March of the Gregorian calendar year afterward |
A non-resident individual who operates out a business or business activity in 2024 or in years to come, provided that their total turnover for a given year exceeds the threshold given in the applicable tax laws |
Three months from the date on which you fulfill the conditions to become liable for taxes |
Late Corporate Tax Registration
Administrative Penalties will be imposed in the event that the individuals mentioned in this decision above neglect to file a Tax Registration application by the deadline specified above.
Disclaimer: Above all information is for general reference only and sourced from internet, before making any kind of decision please visit the authorized websites of authorities and service providers.