Abu Dhabi: The Federal Tax Authority (FTA) has released a Public Clarification on Corporate Tax Registration Timelines, detailing specific deadlines for different categories of taxpayers and urging them to submit their registration applications.
The Public Clarification underscores FTA’s commitment in informing Taxable Persons and stakeholders about all key updates and developments, to ensure complete transparency and compliance.
The Public Clarification is meant to clarify the timelines prescribed in Federal Tax Authority Decision No. 3 of 2024 on the Timelines specified for Registration of Taxable Persons for Corporate Tax for the purposes of Federal Decree Law No. 47 of 2022 on the Taxation of Corporations and Businesses and its amendments.
The FTA stated that this Public Clarification neither amends nor seeks to amend any provision of the aforementioned legislation. Therefore, it is effective as of the date of implementation, that is 1 March 2024, unless stated otherwise. The Public Clarification emphasizes the deadlines for various types of Taxable Persons, both Resident Persons and Non-Resident Persons, including juridical persons and natural persons.
It also addresses the registration requirements for juridical persons seeking exempt status from the FTA under the Corporate Tax Law. However, the timeline for applying for exemptions remains unchanged, as per FTA Decision No. 7 of 2023.
According to the Public Clarification, all Taxable Persons are required to submit a Tax Registration application to the FTA by the specified deadlines. Non-compliance will result in an administrative penalty of AED 10,000 ($2722).
The Public Clarification includes a comprehensive analysis and examples to help Taxable Persons understand how the timelines apply to their specific category.
The FTA encourages all affected Persons to adhere to the specified timelines to ensure compliance and avoid any penalties. Therefore, it is crucial for all Taxable Persons to review the Public Clarification and ensure timely submission of their Corporate Tax Registration applications.