Are you also a young and vibrant business mind? Are you a business person who is interested in doing your desired business in the UAE? Are you part of any corporates?

Whatever it may be the business in UAE must be aware of the new changes that have been taking place with regard to the corporate tax registration. The UAE government has implemented new deadlines for companies to register for corporate tax. If your company is failing to register by the designated date, it could be resulting in a Dh 10,000 fine. The failure to do this job within the given time can result in legal repercussions.

Let us now have a clearcut idea on all the necessary information about the UAE Corporate Tax Registration Process:

What is UAE Corporate Tax Registration Deadlines?

Well, if you are not having a proper idea about the UAE corporate tax registration deadline, you should know it well. As per the tax registration in the UAE, companies established before March 1, 2024 should register based on the month of license issuance. For example; if your license was actually issued in the month of January or February, your company’s registration deadline is on May 31st 2024.

What about the Multiple License?

It is always a factor that people might think about. For the companies with several licensees, the deadline is based on the earliest license issued. Thus it has to be noted well.

What is the tax registration for companies established on or after March 1, 2024:

In this we need to look into certain categories separately. In Freezones the rule is that the registration can be done within three months of incorporation/establishment or recognition.

What about the overseas companies that are managed or controlled in the UAE?

For the overseas companies that are managed or controlled in the UAE, the registration can be done within three months of the end of their financial year starting on March 1.

• Another important factor regarding this is that the overseas companies operating in the UAE before March 1 can register within nine months of commencing operations.
• And for the Overseas companies doing business in the UAE can register on May 31, 2024.

What about the overseas companies relocating to UAE after March 1?

Well, for the overseas companies that are relocating to UAE after March 1 can register within 6 months of starting their operations.

UAE Corporate Tax Rates:

The United Arab Emirate’s newest tax rules, came into existence in June 2023, features a standard statutory rate of 9%. But there are some exemptions and details to be considered in this regard:

What is the taxable income under UAE Corporate Tax Registration?

If the income is Dh 375,000 and below, the company is exempted from corporate tax. This would mean if your company has only the above said income, 0% of tax rates applies.

And if your company has above Dh 375,000, it is subjected to the 9% standard rate.

Know about the Turnover Threshold:

Business with a turnover exceeding Dh 1 million in a calendar year are also subject to corporate tax. This will also ensure that s. Small scale businesses and entrepreneurs are not impacted unless and until they surpass this threshold.

What are the Income Exemptions?

Well, the income generated from rental properties and personal investments are not subject to corporate tax. These will fall outside the scope of new regime.

As we are entering into the conclusion of our learning of the corporate tax registration deadlines of the United Arab Emirates, some of the important facts that we need to remember is that the corporate tax registration is something that is mandatory for the companies which generate the above mentioned income rates. And failing to register will do no good but severe penalties instead. But at the same time the new corporate tax registration rules are not affecting the small scale companies or entrepreneurs as they don’t come under this.

If you are having any queries or clarifications regarding any of the points explained here or if you are in need of any assistance with regard to this, you may feel free to approach us in FIMKIN.