Abu Dhabi (Etihad)
The Federal Tax Authority has set time periods for categories of those subject to corporate tax to submit applications for registration with the authority to avoid violating tax legislation.
This came in a new decision issued by the Authority regarding the deadlines for submitting applications for registration of taxable persons in accordance with Federal Decree Law No. (47) of 2022 regarding corporate and business tax and its amendments, which entered into force last June, and which applies to tax periods that began in, Or after June 1, 2023.
The decision of the Federal Tax Authority, which will come into effect on March 1, 2024, clarified that the time periods specified for submitting applications for registration of those subject to corporate tax include legal persons (residents and non-residents), and natural persons (residents and non-residents).
He pointed out that a resident legal person who was established, created, or otherwise recognized before March 1, 2024, must submit a registration application for corporate tax according to the following, if the month of issuance of the license, regardless of the year of issuance, is “January or February.” The maximum limit for submitting a tax registration application is May 31, 2024, and in “March or April”, the maximum is June 30, 2024, and “May” is July 31, 2024, and “June” is August 31, 2024, and “July” is September 30. 2024, “August or September” October 31, 2024, and “October or November” November 30, 2024, while the month of issuance of the license, regardless of the year of issuance, was “December”, the maximum limit for submitting a tax registration application is December 31, 2024.
The Authority stressed the importance of those subject to corporate tax submitting registration applications according to the time periods specified in the decision, especially those with licenses issued during the months of January and February, regardless of the year the licenses were issued, as they must submit registration applications for corporate tax no later than May 31, 2024, in order to avoid… Violating tax legislation.
According to the decision, if the legal person does not have a license on March 1, 2024, it must submit a registration application within a maximum of three months, that is, until May 31, 2024. If the legal person has more than one license, the earlier license date is used to determine the limit. The maximum number for submitting a tax registration application.
For a resident legal person that is incorporated, created or otherwise recognized under the legislation in force in the country, including a person based in a free zone on, or after, March 1, 2024, it must submit a registration application for corporate tax no later than three months from the date Establishment, establishment or recognition.
The decision clarifies that a resident legal person that is incorporated, created, or otherwise recognized under the legislation of another state or foreign territory, and is effectively managed and controlled in the state on, or after, March 1, 2024, must submit an application for registration for corporate tax to a certain extent. Maximum three months from the end of the person's financial year.
According to the decision of the Federal Tax Authority, if the legal person is a non-resident person who has a permanent establishment in the country before March 1, 2024, it must submit a registration application for corporate tax within a maximum of nine months from the date of the presence of the permanent establishment in the country. As for the legal person, if he is a non-resident person who has a connection in the country before March 1, 2024, he must submit a registration application for corporate tax no later than May 31, 2024. As for the legal person, if he is a non-resident person on or after March 1, 2024 and has a permanent establishment in State, he must submit a registration application for corporate tax within a period not exceeding six months from the date of the presence of the permanent establishment in the state. As for the legal person, if it is a non-resident person with a connection in the country on or after March 1, 2024, it must submit a registration application for corporate tax within a maximum period not exceeding three months from the date of establishing the connection.
According to the decision, a resident natural person who carries on business or business activity in the country during the calendar year 2024 or subsequent years and whose total revenues achieved during a calendar year exceed the limit stipulated in the relevant tax legislation, must submit a registration application for corporate tax up to a maximum of On March 31 of the following calendar year, as for a non-resident natural person who carries on business or business activity during the calendar year 2024 or subsequent years and whose total generated revenues exceed the limit stipulated in the relevant tax legislation, he must submit a registration application for corporate tax up to a maximum of Within three months from the date of fulfillment of the conditions for being subject to tax.
The decision stipulates that administrative fines will be applied to taxable persons who are not committed to submitting registration applications for corporate tax within the time periods specified in the Authority’s decision for each category of those subject to corporate tax, in accordance with Cabinet Resolution No. (75) of 2023 regarding administrative fines related to the implementation of the Decree-Law. Federal No. (47) of 2022 regarding corporate and business tax, and its amendments.
As part of the second phase of its comprehensive information campaign to spread awareness of corporate tax among business sectors, the Federal Tax Authority announced that it is launching a group of virtual workshops via remote video communication technology about the new decision, to familiarize those subject to corporate tax and those concerned with how to commit to submitting registration applications before the end of the year. The periods specified in accordance with the decision for each category of those subject to corporate tax.
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