#2024 corporate tax registration deadline

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Understanding Corporate Tax in the UAE: Everything You Need to Know

The United Arab Emirates (UAE) has long been a hub for business and trade, offering a favorable environment for economic growth. For years, the UAE has attracted both regional and global investments with its tax-free regime. However, the introduction of corporate tax in the UAE marks a significant shift in the country’s taxation policies, bringing new responsibilities for businesses operating within its borders. In this blog, we will explore the key aspects of corporate tax in the UAE, including corporate tax registration, the corporate tax registration deadline, and corporate tax filing.

What is Corporate Tax in the UAE?

Corporate tax refers to a tax imposed by governments on the profits of businesses operating within a jurisdiction. In the UAE, corporate tax is applied to businesses' profits, with a set percentage calculated based on the amount of taxable income. Previously, businesses in the UAE benefited from no corporate tax, which made the region a highly attractive destination for entrepreneurs and investors.

However, in 2023, the UAE government announced the introduction of corporate tax, which will apply to business profits starting from the financial year 2024. The corporate tax rate in the UAE has been set at 9% for businesses earning more than AED 375,000 in taxable income. Profits below this threshold will remain exempt from corporate tax, allowing small and medium-sized enterprises (SMEs) to continue operating with minimal tax burden.

Why Has Corporate Tax Been Introduced?

The introduction of corporate tax in the UAE is part of the government's efforts to diversify its economy and align with global tax standards. The UAE is committed to becoming a member of the Organisation for Economic Co-operation and Development (OECD) Inclusive Framework on Base Erosion and Profit Shifting (BEPS). This move helps the UAE meet international tax transparency standards and attract foreign investment.

Additionally, the revenue generated from corporate tax will contribute to the UAE’s national budget, allowing the government to reinvest in infrastructure, healthcare, education, and other critical sectors that support long-term economic growth.

Corporate Tax Registration: What You Need to Know

For businesses operating in the UAE, corporate tax registration is now a mandatory step. This process involves registering with the Federal Tax Authority (FTA) and obtaining a unique tax identification number. Corporate tax registration ensures that businesses are officially recognized by the government and can comply with the tax system.

Who Needs to Register for Corporate Tax?

All businesses, regardless of their size, that generate taxable income in the UAE are required to register for corporate tax. This includes businesses operating in the mainland, as well as those in free zones, as long as they meet the criteria for taxable income. Businesses whose profits exceed the AED 375,000 threshold will need to register and start paying taxes on their profits.

It’s important to note that even businesses that are currently operating in the UAE, and were previously not subject to corporate tax, must go through the registration process under the new tax regime.

How to Register for Corporate Tax?

The corporate tax registration process is straightforward and involves the following steps:

Visit the Federal Tax Authority (FTA) Website: The first step is to visit the official FTA website and create an account if one does not already exist.

Submit Required Documents: You will need to provide essential documents such as business details, financial records, and the legal structure of your operations.

Obtain Tax Identification Number: Once the registration is approved, businesses will receive a Tax Registration Number (TRN), which is essential for tax filings and payments.

Corporate Tax Registration Deadline: Don’t Miss It

The corporate tax registration deadline is a crucial date that businesses must adhere to in order to comply with the UAE's new tax laws. Failing to register by the deadline could result in penalties, which can be costly for businesses.

When is the Corporate Tax Registration Deadline?

The registration deadline for corporate tax is linked to the start of the financial year. Businesses must complete their registration before the end of the financial year in which the corporate tax applies. For most businesses, the deadline for registration will be in 2024, as corporate tax comes into effect for the financial year starting January 1, 2024. However, businesses should consult the FTA website or seek professional advice to confirm the exact registration deadline based on their specific financial year.

Corporate Tax Filing: A Guide to Compliance

Once a business has registered for corporate tax, it must also ensure that it complies with the filing requirements. Corporate tax filing involves submitting detailed tax returns that outline the company’s profits, allowable expenses, and any tax liabilities.

What is Corporate Tax Filing?

Corporate tax filing refers to the process of submitting a tax return to the FTA, declaring the business’s profits for the relevant tax period. This process includes:

Calculating taxable income: The business must determine its profits after deducting allowable expenses, such as operating costs, salaries, and depreciation.

Filing the tax return: Businesses must file their tax returns by the prescribed deadlines, typically annually. The returns will include detailed financial statements, including income statements and balance sheets.

Paying the tax: After submitting the tax return, the business must pay any tax liabilities owed. This can be done via bank transfer or other available payment methods.

When to File Corporate Tax Returns?

The exact deadline for UAE Corporate tax filing depends on the business’s financial year. However, businesses are generally required to file their returns within nine months after the end of their financial year. For example, if a business follows a calendar year (January to December), its corporate tax filing deadline will be September 30 of the following year.

It is essential to keep track of these deadlines to avoid penalties for late filing, which can accumulate over time and affect a business’s financial standing.

Key Benefits of Corporate Tax Registration and Filing

Legal Compliance: Registering for corporate tax and filing returns ensures that your business operates in compliance with UAE laws, avoiding fines and penalties.

Transparency and Trust: Being a registered taxpayer enhances your business’s reputation and can improve trust with partners, investors, and stakeholders.

Contributing to the National Economy: Corporate tax helps fund government initiatives that drive economic growth, benefiting everyone within the country.

Tax Planning Opportunities: Filing taxes gives businesses a chance to optimize their tax planning strategies and make use of allowable expenses to reduce tax liabilities.

Conclusion

The introduction of corporate tax in the UAE marks a significant change in the business landscape, but it is a necessary step toward economic diversification and international alignment. As businesses prepare for the new corporate tax regime, understanding the process of corporate tax registration, the importance of adhering to the corporate tax registration deadline, and complying with corporate tax filing requirements will ensure smooth operations and avoid costly mistakes.

By staying informed and taking action promptly, businesses can navigate the corporate tax system effectively and continue to thrive in the dynamic UAE market.

[bbuzz25]

How to File Your Company's Corporate Tax?  

All about Corporate Tax Registration in Dubai 

Dubai is the ideal hub for business. Its visionary approach and dynamic infrastructure make it the world’s best place to start and grow a business. To comply with UAE tax laws, businesses operating in Dubai must register for corporate tax. This guide outlines the key steps and requirements to help you navigate the process smoothly. 

Understanding Corporate Tax in the UAE 

Corporate tax is a direct tax on a company’s net income or profit. The Federal Tax Authority (FTA) administers this tax to promote financial transparency and align with global tax standards. Registering for corporate tax is essential for fulfilling legal obligations and avoiding penalties. 

Who Needs to Register? 

Companies incorporated after March 1, 2024, must register for corporate tax within three months of incorporation. Corporate tax registration applies to all entities meeting the income thresholds specified by the UAE government. However, certain businesses, such as those involved in natural resource extraction, may be exempt under specific conditions. 

Steps to Register for Corporate Tax in Dubai 

Create an e-Services Account  Start by setting up an account on the Federal Tax Authority’s (FTA) e-Services portal. You’ll need a valid Emirates ID or business license. 

Prepare the Necessary Documents  Gather the following essential documents: 

Trade license 

Emirates ID or passport copies of business owners 

Proof of company address 

Complete the Application Form  Log in to the FTA portal and fill out the corporate tax registration form. Provide accurate details about your business operations and other relevant information. 

Submit Your Application  Submit the completed form along with the required documents. Once the FTA reviews and approves your application, you will receive a Tax Registration Number (TRN). 

Compliance and Reporting Requirements 

File Annual Tax Returns: Submit accurate tax returns each year. 

Maintain Financial Records: Keep detailed records for at least five years to ensure compliance. 

Meet Deadlines: Stay informed about filing and payment deadlines to avoid fines. 

Registering for corporate tax in Dubai is a critical step for businesses to operate legally and efficiently. For expert assistance in filing your corporate tax, consider consulting a tax professional or compliance service provider. 

[boir00]

Top 5 Reasons for BOIR Penalties and How to Avoid Them

Filing the Beneficial Ownership Information Report (BOIR) is a critical compliance requirement for many businesses operating in the United States. Under the Corporate Transparency Act (CTA), failing to comply with BOIR regulations can lead to significant penalties, including hefty fines and even criminal charges. BOIR.org is here to help businesses understand the most common reasons for BOIR penalties and how to avoid them.

By addressing these challenges head-on, businesses can protect themselves from costly mistakes while contributing to a more transparent financial system. Here are the top five reasons for BOIR penalties and practical strategies to stay compliant.

1. Failure to File on Time

One of the most common reasons for BOIR penalties is missing the filing deadline. The Financial Crimes Enforcement Network (FinCEN) has set strict deadlines for businesses to submit their reports. Entities created or registered before January 1, 2024, must file their initial report by January 1, 2025. Those formed or registered on or after January 1, 2024, must file within 30 days of formation or registration.

Penalties: Late filings can result in fines of up to $500 per day, capped at $10,000, along with potential criminal charges for willful violations.

How to Avoid:

Track Deadlines: Use a compliance calendar to ensure all deadlines are met.

Prepare Early: Gather required information well in advance to avoid last-minute scrambles.

Automate Reminders: Leverage software solutions to send timely reminders for upcoming filings.

2. Incomplete or Inaccurate Information

Submitting incomplete or inaccurate information is another major cause of BOIR penalties. The report requires detailed information about the business entity and its beneficial owners, including legal names, residential addresses, dates of birth, and government-issued identification numbers.

Penalties: Providing false or misleading information can lead to severe penalties, including criminal charges with potential imprisonment of up to two years.

How to Avoid:

Double-Check Entries: Review all data thoroughly before submission.

Verify Beneficial Ownership: Ensure that all individuals with a significant ownership stake or control are accurately identified.

Use Professional Services: Consider hiring compliance professionals to review and validate your report.

3. Misunderstanding Exemptions

Not all entities are required to file BOIR, but misunderstanding the exemption criteria can lead to unintended non-compliance. Entities such as publicly traded companies, tax-exempt organizations, and large operating companies meeting specific criteria are exempt from filing. However, businesses often mistakenly assume they qualify for exemptions without proper verification.

Penalties: Failure to file due to incorrect assumptions about exemptions can result in the same penalties as not filing at all.

How to Avoid:

Understand the Rules: Familiarize yourself with the exemption criteria outlined by FinCEN.

Consult Legal Experts: Seek advice from legal or compliance professionals to confirm your entity’s status.

Err on the Side of Caution: If unsure, file the BOIR to avoid penalties while clarifying your exemption status.

4. Neglecting Updates and Changes

BOIR compliance doesn’t end with the initial filing. Businesses must report any changes to beneficial ownership information within 30 days. Neglecting to update this information can lead to non-compliance and penalties.

Penalties: Failing to update changes can result in fines and additional scrutiny from regulatory authorities.

How to Avoid:

Monitor Changes: Establish an internal process to track changes in ownership or control.

Designate a Compliance Officer: Assign a team member to oversee ongoing compliance.

Set Regular Reviews: Schedule periodic audits to ensure all information remains current.

5. Lack of Awareness or Preparation

Many businesses face penalties simply because they are unaware of the BOIR requirements or underestimate the complexity of compliance. Small businesses and startups, in particular, may lack the resources or knowledge to navigate the process effectively.

Penalties: Ignorance of the law is not a defense, and unintentional violations can still result in fines and other penalties.

How to Avoid:

Educate Yourself: Use resources like BOIR.org to stay informed about filing requirements.

Invest in Training: Provide training for your team on BOIR compliance and its importance.

Partner with Experts: Work with compliance consultants or legal advisors to build a robust compliance strategy.

Proactive Strategies for BOIR Compliance

Avoiding BOIR penalties requires more than just reacting to requirements; it involves proactive planning and ongoing diligence. Here are some overarching strategies to help your business stay compliant:

Develop a Compliance Culture: Embed compliance as a core part of your business operations to ensure that every team member understands its importance.

Utilize Technology: Leverage compliance software to automate filing processes, track deadlines, and maintain accurate records.

Create a Centralized Documentation System: Keep all beneficial ownership information in a secure and organized manner for easy access and updates.

Engage Regularly with Experts: Stay connected with legal and compliance professionals who can provide guidance on changing regulations.

Conduct Periodic Reviews: Schedule regular compliance audits to identify potential issues before they become costly mistakes.

Conclusion

BOIR compliance is an essential responsibility for many U.S. businesses under the Corporate Transparency Act. While the requirements can seem daunting, understanding the common reasons for penalties and how to avoid them will help protect your business from financial and reputational harm.

By prioritizing timely and accurate filings, staying informed about exemptions, and implementing robust compliance processes, your business can navigate BOIR regulations with confidence. At BOIR.org, we are committed to providing the resources and expertise you need to achieve seamless compliance. Start preparing today to safeguard your business and contribute to a more transparent and trustworthy marketplace.

[amaaudit]

📢 Attention UAE businesses! If your license was issued in August or September, the deadline ⏳ is approaching. October 31st 2024 📅 marks the last day to register for Corporate Tax compliance. AMA Audit Tax Advisory can help! Avoid potential penalties and contact us today to discuss your registration needs. 📞 : +971 58 5810224 , 📧 : info@amaaudit.co, 🌐 : www.amaaudit.com

[elevateaccounting]

Corporate Tax Registration Deadline for Resident Juridical Persons: Act Before 31 October 2024!

Attention all resident juridical persons with licenses issued in August or September! The corporate tax registration deadline is fast approaching on 31 October 2024. Failing to register in time may result in penalties under the UAE’s Corporate Tax Law. Don’t risk non-compliance—ensure your business stays on the right side of the law. Elevate Accounting & Auditing offers expert guidance to streamline your corporate tax registration process and ensure you meet the deadline with ease. Let us handle your compliance needs, so you can focus on growing your business!

[bmsauditingfirm]

Corporate tax return in UAE: What Businesses Need to Know in 2024

As the UAE continues to evolve as a global business hub, the introduction of corporate tax in 2023 marks a pivotal shift in its fiscal policy. For years, the UAE attracted businesses and investors due to its tax-free environment. However, with corporate tax now in place, companies must adapt to new regulations and filing requirements. Whether you're a startup, SME, or large corporation, understanding Corporate tax return in UAE is essential for compliance and long-term financial planning.

An Overview of UAE Corporate Tax

Corporate tax return in UAE is designed to align the nation with international standards and prevent harmful tax practices. The tax regime is straightforward and aims to ensure fairness while maintaining the UAE’s appeal to investors.

Here are the key highlights of corporate tax in the UAE:

Tax Rate: A corporate tax rate of 9% applies to businesses with taxable income exceeding AED 375,000. Income below this threshold is exempt, making it easier for small businesses to thrive.

Exemptions: Some businesses remain outside the corporate tax scope, such as:

Government entities

Extractive industries (oil and gas) and other natural resource-related businesses

Public benefit organizations and qualifying investment funds

Free zone businesses (under certain conditions)

Foreign Income Exemption: Companies earning income outside the UAE or from foreign subsidiaries may not be taxed on those earnings, depending on the structure and nature of their operations.

Who is Required to File Corporate Tax Returns?

All businesses established or operating in the UAE, including mainland companies and branches of foreign companies, must file corporate tax returns. Businesses operating within the UAE's free zones, although exempt from corporate tax in most cases, must still submit tax returns to confirm their compliance with the necessary conditions for exemption.

Some exempt entities may also be required to file returns in order to maintain transparency with the Federal Tax Authority (FTA).

Steps to File Corporate Tax Returns in the UAE

Filing corporate tax returns involves multiple steps, but the process has been designed to be efficient and streamlined. Here’s what businesses need to know:

Registration with the FTA: Businesses must register with the FTA for corporate tax purposes and obtain a Tax Registration Number (TRN). This applies to both taxable and exempt businesses.

Preparing Financial Statements: Accurate financial records are crucial for filing returns. Companies need to prepare audited financial statements to determine taxable income, ensuring they comply with the UAE’s accounting standards.

Filing the Corporate Tax Return: The corporate tax return must be filed annually. The filing deadline is within 9 months following the end of the company’s financial year. For example, if your financial year ends on December 31, 2023, the return must be submitted by September 30, 2024.

Payment of Corporate Tax: After filing the return, businesses are required to pay any outstanding corporate tax liabilities within the same 9-month period. Late payments may result in penalties and interest charges.

Penalties for Non-Compliance: The FTA imposes strict penalties for late or incorrect filings, which can be financially significant. Failure to file or pay on time may also lead to audits and further scrutiny.

What Can Be Deducted from Taxable Income?

One of the advantages of the UAE's corporate tax regime is its clarity on deductible expenses. Businesses are allowed to deduct certain costs and expenses from their taxable income, which can significantly reduce their overall tax liability.

Some common deductions include:

Operational Expenses: Regular business expenses, such as rent, salaries, marketing costs, and utilities, can be deducted.

Depreciation: Businesses can claim deductions for the depreciation of fixed assets, helping reduce their taxable income over time.

Interest on Loans: If a business has taken loans to finance its operations or expansion, the interest payments on these loans may be deducted from taxable income.

However, it's important to ensure that these deductions comply with the FTA's guidelines and are well-documented.

Corporate Tax in Free Zones: Special Considerations

Free zones have long been a key attraction for investors in the UAE due to their tax-free benefits. While corporate tax now applies across the country, free zone businesses can still benefit from 0% tax rates provided they meet certain conditions. For example:

The business must not conduct business with the UAE mainland.

The business must comply with all relevant laws and maintain economic substance in the free zone.

However, free zone companies are still required to file corporate tax returns even if they enjoy a 0% rate, ensuring transparency and compliance with the FTA.

Importance of Corporate Tax Planning

With the implementation of corporate tax in the UAE, tax planning has become an essential component of financial management for businesses. Effective tax planning can help companies:

Reduce Tax Liabilities: By identifying applicable deductions, exemptions, and tax credits, businesses can minimize their overall tax burden.

Ensure Compliance: Staying on top of filing deadlines, regulatory requirements, and documentation can prevent costly penalties and audits.

Optimize Cash Flow: Strategic tax planning can free up resources that can be reinvested into the business, improving operational efficiency and growth.

For companies with complex operations or those expanding internationally, seeking professional tax advisory services can be critical in navigating the new landscape.

Final Thoughts

Corporate tax in the UAE represents a significant change for businesses in the region. While the 9% tax rate is competitive by global standards, companies must now incorporate tax compliance into their operational strategies. By understanding the tax framework, filing requirements, and available deductions, businesses can thrive while remaining compliant.

[intellectdubai]

UAE Corporate Tax Registration 2024: Complete Guide for Businesses

In January 2022, the UAE Ministry of Finance made a major announcement that has since shaped the future of business operations in the country—the introduction of corporate tax. This decision marks the UAE's shift toward adopting international standards of taxation while supporting its ambition to become a global business hub.

Starting from either June 1, 2023, or January 1, 2024, depending on your business’s financial year, businesses operating across the seven emirates will be required to pay corporate tax. This guide breaks down everything you need to know about UAE corporate tax registration 2024, making it easier for businesses of all sizes to navigate these new regulations.

Why Corporate Tax in UAE?

The introduction of corporate tax is part of the UAE's broader effort to enhance its global standing, ensure a fair tax environment, and meet international tax standards. For years, the UAE has been a low-tax or tax-free jurisdiction, attracting businesses from around the world. While the new corporate tax may seem like a significant change, it’s designed with several goals in mind:

Encouraging Business Growth: By maintaining a favorable tax regime (with a 0% tax rate on lower income), the government ensures that small and medium businesses can continue to grow without heavy tax burdens.

Sustaining Development: Corporate tax revenues will support national development plans, fostering infrastructure, healthcare, education, and other public services.

Adhering to Global Tax Standards: With more countries aligning their tax systems under global standards, the UAE’s corporate tax reinforces the country's commitment to international tax regulations, helping it avoid being categorized as a tax haven.

Corporate Tax Rates in the UAE

The corporate tax structure is relatively simple and designed to be competitive with other countries. As per the Ministry of Finance, corporate tax rates are as follows:

0% Tax Rate: If your company’s taxable income is up to 375,000 AED, no corporate tax is due. This threshold ensures that small businesses, startups, and new ventures are not financially strained.

9% Tax Rate: If your business generates taxable income above 375,000 AED, you will be taxed at a 9% rate on the amount exceeding this threshold. This rate is significantly lower than corporate tax rates in many other countries, making the UAE an attractive destination for businesses.

Notably, certain entities such as government entities, natural resource businesses, and free zone companies (that comply with all regulations) are exempt from corporate tax.

Corporate Tax Registration Deadlines 2024

The corporate tax registration deadlines in the UAE vary depending on when you received your business license. Rather than setting one uniform deadline, the government has created a staggered system to spread the registration workload over time. Here’s a breakdown of the deadlines based on when your business license was issued:

If your license was issued between January 1 - February 28/29, the deadline for corporate tax registration is May 31, 2024.

If your license was issued between March 1 - April 30, the deadline is June 30, 2024.

If your license was issued between May 1 - May 31, the deadline is July 31, 2024.

If your license was issued between June 1 - June 30, the deadline is August 31, 2024.

If your license was issued between July 1 - July 31, the deadline is September 30, 2024.

If your license was issued between August 1 - September 30, the deadline is October 31, 2024.

If your license was issued between October 1 - November 30, the deadline is November 30, 2024.

If your license was issued between December 1 - December 31, the deadline is December 31, 2024.

All businesses are required to meet their respective deadlines, and failure to register on time may result in penalties. It’s crucial to note that businesses that miss their registration deadline will still be obligated to pay corporate tax, but they may face additional fines or delays in compliance.

Steps to Register for Corporate Tax in Dubai, UAE

The UAE government has simplified the corporate tax registration process to ensure it is accessible for all businesses, whether you are a small startup or a large multinational. Registration is conducted through the EmaraTax portal, a central online platform for tax-related matters in the UAE. Here is a step-by-step guide to registering for corporate tax:

Login to the EmaraTax Portal: If you already have an account, simply log in with your credentials. If not, you can either create a new account by clicking on the “signup” button or log in using the UAE Pass.

Taxable Person List: Once logged in, you will see a list of all taxable persons associated with your profile. If there are no taxable persons linked to your account, you will need to add your business as a taxable entity.

Start the Registration Process: Click on the “Register” button under the Corporate Tax tile in the dashboard.

Fill in Entity Details: Select your business’s entity type from a dropdown menu (e.g., LLC, sole proprietorship, etc.), and the form will automatically adjust based on your selection.

Add Business Activity: In this section, you’ll need to provide details on your company’s activities, as listed on your trade license.

Add Owners & Branches: You will be required to enter details about all owners (including passport and Emirates ID copies) and branches (if applicable). Ensure that you fill in the required fields for each entity.

Contact Details: Provide your business's registered address, including a P.O. Box number.

Add Authorized Signatories: If your company has authorized signatories, you will need to input their details. You can add multiple signatories if needed.

Review & Submit: Carefully review all the information you have entered. After confirming that everything is accurate, click “Submit” to complete the registration process.

Once your registration is submitted, the application will be processed, and your business will officially be registered for corporate tax.

Documents Required for Corporate Tax Registration

To complete the corporate tax registration, you will need to have the following documents on hand:

A copy of your Trade License.

Passport and Emirates ID copies for all owners, partners, and shareholders.

Memorandum of Association(MOA) or Power of Attorney(POA).

Contact details of the business and the relevant individuals (including phone numbers and email addresses).

A copy of your Annual Financial Audit Report, showing the company’s financial performance over the previous year.

Having these documents prepared in advance will streamline the registration process and avoid any delays.

Why Businesses Need to Comply

Adhering to corporate tax regulations is not just about avoiding penalties; it’s about staying competitive in a rapidly evolving global market. The UAE government has introduced the corporate tax in a way that aims to benefit businesses and support long-term growth. Companies that comply early on will be better positioned to adapt to the regulatory environment and establish themselves as responsible, forward-thinking enterprises.

Moreover, as global tax standards continue to evolve, countries like the UAE are making efforts to remain aligned with the broader international tax landscape. This enhances the credibility of UAE-based businesses in international markets, helping them forge stronger partnerships and attract foreign investment.

Corporate Tax Registration Services in the UAE

Navigating the complexities of corporate tax registration can be challenging, especially for businesses that are unfamiliar with tax regulations. That’s where expert services like those offered by Intellect Chartered Accountants come in. With over 21 years of experience in the field, Intellect Chartered Accountants is a leading provider of corporate tax registration services in Dubai, UAE.

Whether you need help with registering for corporate tax, understanding VAT, or ensuring that your business remains compliant with UAE laws, Intellect Chartered Accountants offers tailored solutions to meet your financial needs. Our team of tax experts is here to guide you through every step of the process.For more information on how we can assist with your corporate tax registration, contact Intellect Chartered Accountants today.

[macnross]

UAE Corporate Tax: New Businesses Must Register Within 3-Month Deadline

Dubai: Have you recently established a company in the UAE? If so, it's crucial to prioritize registering for corporate tax, even as you focus on building your business, hiring staff, and setting up your office.

New companies incorporated in the UAE are required to register for corporate tax within a 3-month window. Failure to do so could result in penalties, a setback no new business wants to face.

Despite frequent alerts from authorities, many new business owners are missing the registration deadline or submitting incomplete applications, leading to rejections, according to tax consultants.

To avoid these pitfalls, new businesses should follow these steps:

Register for Corporate Tax Within 3 Months: This is non-negotiable to avoid penalties and complications later.

Evaluate Eligibility: Assess whether your business qualifies for 'Qualifying Free Zone Person' status, the 3-year SME Relief program, and other relevant factors such as transfer pricing applicability.

Maintain Proper Accounts: Ensure accurate bookkeeping and avoid mixing non-business expenses with business finances.

Consider VAT and Other Laws: Keep in mind the applicability of VAT and other relevant legal requirements.

"Every company formed on or after June 1, 2023, in the UAE is subject to the corporate tax regime from day one" 

The Federal Tax Authority (FTA) issues regular alerts on tax registration deadlines based on the incorporation date of each company. However, many founders are delaying the necessary paperwork, leading to missed deadlines for obtaining a Tax Registration Number (TRN).

"Early registration ensures that a newly formed company is prepared to meet its tax obligations from the start." This can prevent last-minute rushes and errors, which could lead to penalties and complications.

Another critical decision for new businesses is choosing the appropriate financial year. Options include the standard January to December timeline, an April to March fiscal year, or a different 12-month period.

"The financial year and tax period will depend on the company's Memorandum of Association or Articles of Association," For companies incorporated on or after June 1, 2023, the first tax period will start from the date of incorporation and must be at least 6 months but not exceed 18 months."

For example, if a company selects a January to December financial year, the first tax period would be from June 1, 2023, to December 31, 2023—spanning 7 months. Alternatively, if the fiscal year is April to March, the first tax period would be June 1, 2023, to March 31, 2024—a 10-month period.

To avoid penalties, businesses must prioritize meeting the tax registration deadlines.

[accruonconsultantsllc]

 Don’t forget, July 31st is an important deadline for companies in the UAE. 🗓️

If your trade license was issued in May, you need to complete your corporate tax registration by July 31st, 2024. This applies to judicial persons like LLC companies, free zone companies etc Need help with corporate tax registration or have questions? 🤔 Contact me directly or click the link below for assistance.

[sbataxconsultantskbk]

IRS Extends Tax Deadlines to November 1, 2024

In a move aimed at providing relief and flexibility to taxpayers, the Internal Revenue Service (IRS) has announced an extension of tax deadlines to November 1, 2024. This decision comes in response to various challenges faced by individuals and businesses, ensuring that everyone has ample time to fulfill their tax obligations without undue pressure.

Why the Extension?

Several factors have contributed to the IRS’s decision to extend the tax deadlines:

1. Economic Uncertainty: The ongoing economic fluctuations have made it difficult for many taxpayers to gather necessary documentation and complete their tax filings on time.

2. Natural Disasters: Recent natural disasters have disrupted lives and businesses, making it harder for affected individuals to meet the original deadlines.

3. Administrative Backlogs: The IRS has faced its own set of challenges, including staffing shortages and processing backlogs, which have delayed the handling of tax returns and inquiries.

 Key Dates to Remember

With the new deadline of November 1, 2024, taxpayers should take note of the following important dates:

Estimated Tax Payments: For those making quarterly estimated tax payments, the new deadlines apply to any payments due from now until November 1.

Extension Filings: If you had filed for an extension, the original October 15 deadline is now extended to November 1.

Penalty Relief: The IRS has indicated that penalties for late filing and late payment will be waived for returns and payments made by the new deadline.

How to Take Advantage of the Extension

Here are some steps to ensure you make the most of this extended period:

1. Review Your Tax Documents: Use this additional time to thoroughly review and organize your tax documents. Make sure you have all necessary receipts, W2s, 1099s, and other relevant forms.

2. Consult a Tax Professional: If you haven’t already, consider seeking advice from a tax professional. They can provide guidance on how to maximize deductions and credits, ensuring you pay only what you owe.

3. Stay Informed: Keep an eye on IRS updates and announcements. The IRS website is a valuable resource for the latest information on tax deadlines and other important notices.

Potential Benefits of the Extension

The extended deadline offers several potential benefits:

Financial Planning: More time allows for better financial planning and cash flow management, particularly for businesses and individuals who may be facing financial constraints.

Accurate Filings: With extra time, taxpayers can ensure their filings are accurate, reducing the risk of errors and potential audits.

Stress Reduction: The extension helps alleviate the stress and anxiety often associated with tax season, giving taxpayers a breather to manage their other responsibilities.

The IRS’s decision to extend tax deadlines to November 1, 2024, provides a much needed reprieve for taxpayers nationwide. Whether you’re an individual filer or a business owner, take advantage of this extension to carefully prepare your tax documents, seek professional advice, and ensure you meet your obligations without the added pressure of a tight deadline.

For more information and updates, visit the SBA Tax Consultants.

Corporation Registrations, IRS, Payroll, Tax Advisors, Tax Consultants, Tax Filing, Tax Services

[hhslawyers]

Deadline for Corporate Tax Registration 2024

[spkauditors]

May 31, 2024 is the earliest published deadline.

The Ministry of Finance has announced a new penalty of Dh10,000 for late corporate tax registration. Don't risk fines, register with the FTA on time!

SPK Auditors & Accountants are here to guide you through the process and ensure compliance.

Contact us for Compliance - +971558572143

[uae-corporate-tax-fta-urges]

UAE Corporate Tax: FTA Urges Registration by May 31 for Specific License Holders

The Federal Tax Authority (FTA) has issued a directive urging certain license holders subject to corporate tax to register by May 31, 2024. The directive applies to resident juridical persons with licenses issued in January and February, regardless of the issuance year.

Emphasizing the importance of adhering to this deadline, the FTA has highlighted the significance of aligning with Decision No.3 of 2024, effective since March 1, 2024. Non-compliance may lead to administrative penalties.

The FTA has specified deadlines for both resident and non-resident juridical and natural persons to apply for corporate tax registration. Failure to meet these deadlines may result in penalties.

Stakeholders are urged to consult the Corporate Tax Law and relevant guides available on the FTA website. To facilitate registration, the FTA provides EmaraTax, a digital platform accessible at all times. Businesses can complete registration in approximately 30 minutes using this platform, especially if they are already registered for VAT or excise tax. Upon approval, applicants will receive a Tax Registration Number (TRN) for corporate tax purposes.

[vikul1973]

Dubai Corporate Tax Registration 2024: Beat the Deadline!

[amaaudit]

📢 Attention UAE businesses! If your license was issued in July, the deadline ⏳ is approaching. September 30th 2024 📅 marks the last day to register for Corporate Tax compliance. AMA Audit Tax Advisory can help! Avoid potential penalties and contact us today to discuss your registration needs.

📞 : +971 58 5810224 , 📧 : info@amaaudit.co, 🌐 : www.amaaudit.com