Dh10,000 fine in UAE: Firms reminded of June 30 deadline for corporate tax registration

UAE residents subject to corporate tax with licences issued in March and April — regardless of the year of issuance — must submit their corporate tax registration application by June 30, the Federal Tax Authority (FTA) reminded on Friday.

For juridical persons (recognised entities with distinct legal personality from its founders, owners, and directors) who did not have a licence by March 1 this year, the deadline for the submission of corporate tax registration was on May 31.

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Corporate tax applies to juridical persons incorporated in the UAE and to foreign entities that are effectively managed and controlled in the country. The resident juridical taxable persons cover entities incorporated in the UAE, including free zone businesses and entities established abroad but controlled and managed from the country.

According to the Ministry of Finance, individuals conducting business activities in the UAE will be subject to corporate tax only if their combined turnover exceeds Dh1 million a year.

Companies who miss the deadline for tax registration shall face a Dh10,000 fine, based on a Cabinet decision issued in February this year.

What is corporate tax?

Corporate tax is a form of direct tax levied on the net income or profit of corporations and other businesses.

Khalid Ali Al Bustani, FTA director-general, said “business sectors have been informed of the specified deadlines for different taxpayer categories as part of continuous efforts to strengthen strategic partnerships with taxable persons and provide them with the means to facilitate smooth and accurate tax compliance.”

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