Enhancing Corporate Tax Compliance: FTA Introduces Extended Registration Deadlines

In a concerted effort to bolster corporate tax compliance and streamline registration procedures, the Federal Tax Authority (FTA) of the United Arab Emirates (UAE) has implemented a series of measures aimed at facilitating registration for Corporate Tax. Since the enactment of the Federal Decree-Law on the Taxation of Corporations and Businesses, effective from fiscal years commencing on or after 1 June 2023, the FTA has been actively engaged in collaborative endeavors with relevant entities to ensure the seamless implementation of tax legislation.

The latest initiative by the FTA involves the issuance of a decision establishing deadlines for all categories of taxpayers subject to Corporate Tax to submit registration requests. This decision, effective as of 1 March 2024, seeks to provide clear guidelines and a regulatory framework to enable taxpayers to register within defined timeframes, thereby avoiding delays in the registration process.

By introducing specific time periods for submitting registration requests, encompassing both legal and natural persons (residents and non-residents), the FTA aims to enhance compliance rates and foster a culture of proactive tax adherence. It is imperative for all entities subject to Corporate Tax to adhere to the deadlines stipulated in the decision, with particular emphasis on those whose licenses were issued in January and February. Failure to submit registration requests by the specified deadlines may result in non-compliance with tax legislation.

To ensure widespread awareness and understanding of the new registration deadlines, the FTA has conducted a series of virtual workshops, engaging stakeholders to elucidate the procedures for compliance. Additionally, the FTA has made Corporate Tax registration accessible round the clock through the EmaraTax digital tax services platform, offering a streamlined process that can be completed in just four steps, taking approximately 30 minutes.

In a bid to further facilitate registration procedures, the FTA has introduced a new service enabling taxpayers to submit registration requests at various government service centers across the UAE. Taxpayers also have the option to register directly through the EmaraTax platform and seek assistance from accredited Tax Agents listed on the official FTA website.

Looking ahead, the FTA remains committed to launching initiatives aimed at driving sustainable development and enhancing service delivery. By prioritizing customer satisfaction and leveraging multiple channels of communication, the FTA endeavors to support taxpayers in navigating the complexities of tax compliance procedures and overcoming any challenges they may encounter along the way.