Deadline To File Tax Return and Settle Corporate Tax has been notified by the Federal Tax Authority (FTA) of the United Arab Emirates (UAE) . The FTA has issued the corporate tax public clarification in respect of postponement of the deadline to file a tax return and settle the corporate tax payable for certain tax periods.
All Taxable Persons are required to file a Tax Return for Corporate Tax to the FTA and settle the Corporate Tax Payable with the FTA by no later than nine months from the end of the relevant Tax Period, or by such other date as directed by the FTA.
FTA Decision No. 7 of 2024 specifies that all Taxable Persons incorporated, established or recognised under the applicable legislation of the State on or after 1 June 2023, and with a Tax Period that ends on or before 29 February 2024 shall now file their Tax Return and settle their Corporate Tax Payable by 31 December 2024.
This decision will not apply to any Taxable Person whose Tax Period ends after 29 February 2024. Administrative Penalties which reference the deadline for the submission of the Tax Return or the due date settlement of Corporate Tax Payable for such Taxable Persons will, therefore, apply from 1 January 2025.
Table of Contents
Analysis Of New Deadline To File Tax Return
The analysis explains the new deadline to submit the Tax Return and pay the Corporate Tax Payable, and provides examples of how such deadline applies to Taxable Persons with different Tax Periods.
The Taxable Persons affected by FTA Decision No. 7 of 2024 are only those with a short Tax Period ending on or before 29 February 2024, e.g. Tax Periods ending on 31 December 2023, 31 January 2024 or 29 February 2024.
Therefore, this decision applies to Taxable Persons whose obligation to file a Tax Return for Corporate Tax and settle the Corporate Tax Payable.
The decision applies to Taxable Persons with a short Tax Period ending 31 December 2023 whose obligation to file a Tax Return for Corporate Tax and settle the Corporate Tax Payable with the FTA is by 30 September 2024 – this includes juridical persons that were incorporated in June 2023 or on 1 July 2023 in the UAE and have a January to December Financial Year.
Further, it applies to Taxable Persons with a short Tax Period ending 31 January 2024 whose obligation to file a Tax Return for Corporate Tax and settle the Corporate Tax Payable with the FTA is by 31 October 2024 – this includes juridical persons that were incorporated in June 2023, July 2023, or on 1 August 2023 in the UAE and have a February to January Financial Year.
Taxable Persons with a short Tax Period ending 29 February 2024 whose obligation to file a Tax Return for Corporate Tax and settle the Corporate Tax Payable with the FTA is by 30 November 2024 – this includes juridical persons that were incorporated in June 2023, July 2023, August 2023 or on 1 September 2023 in the UAE and have a March to February Financial Year.
Taxable Persons with a short Tax Period because they ceased to exist, ceased their Business, dissolved, liquidated or otherwise on or prior to 29 February 2024.
Taxable Persons should verify their first Tax Period by referring to Public Clarification CTP003 on the first Tax Period of a juridical person.
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Relevant Provisions – Deadline To File Tax Return
Article 52(2) of the Corporate Tax Law states that a Taxable Person shall not be deregistered unless it has paid all Corporate Tax and Administrative Penalties due and filed all Tax Returns due under the Corporate Tax Law, including its Tax Return for the Tax Period up to and including the date of cessation.
Violation No. 9 of the Table of Violations and Administrative Penalties annexed to Cabinet Decision No. 75 of 2023 states that a Registrant who submits an incorrect Tax Return will be levied with an Administrative Penalty of AED 500, unless the Person corrects his Tax Return before the expiry of the deadline for the submission of the Tax Return according to the Corporate Tax Law.
Notification Details
Notification No. CTP004