Violating registration deadlines to register as a taxable entity in the UAE will result in a fine of AED 10K (USD 2.7K)

The UAE Federal Tax Authority (FTA) has set new deadlines for companies to register as taxable entities. This decision came into force on 1 March, 2024. Those found to be in violation of registration deadlines will be subject to a fine of AED 10K (USD 2.7K).

When the company must be registered depends on the month in which the legal entity received its licence. The year the licence was issued is not taken into consideration.

It is not imperative that the registration process has been fully completed by this date, but rather that the application to the FTA has been submitted:

Month UAE business licence was issued Deadline to apply for registration to obtain a tax number
January/February 31 May 2024
March/April 30 June 2024
May 31 July 2024
June 31 August 2024
July 30 September 2024
August/September 31 October 2024
October/November 30 November 2024
December 31 December 2024

The fine will not be imposed on companies that started the registration process before the specified date but did not complete it.

Companies established in the UAE on or after 1 March 2024, including in free trade zones, must register as taxable entities within three months of the date of registration.

A legal entity that is established overseas, but is managed and controlled in the UAE as of 1 March, must apply to obtain a tax number within three months of the end of the financial year.

If a company is established abroad, but commenced operations in the UAE before 1 March 2024, it must submit an application within nine months of the date of commencement.

A non-resident foreign company that has relocated to the UAE and commenced operations in the Emirates on or after 1 March must submit an application within six months.

You can register as a taxable entity on the digital tax services platform, EmaraTax, which is available 24/7. The registration process takes approximately about half an hour.

The FTA plans to conduct a series of webinars to educate taxpayers on the rules and procedures for registering.

Want to get a free consultation?