The Federal Tax Authority recently issued a general clarification regarding the deadlines for registering individuals subject to corporate tax. This clarification provides comprehensive information about the deadlines by which various categories of individuals subject to corporate tax must submit registration applications to the authority.
For individuals, the first possible tax period for any natural person, resident or non-resident, is the calendar year 2024. Income generated before January 1, 2024 will not be subject to corporate tax, and the deadline for submitting a tax registration application is May 31, 2025.
The Authority’s commitment to informing taxpayers and stakeholders of major updates and developments aims to ensure transparency and promote voluntary compliance. The general clarification reviews the periods specified in Federal Tax Authority Resolution No. (3) of 2024 regarding the registration of persons subject to corporate tax as per Federal Decree Law No. (47) of 2022.
The general clarification does not amend any provisions of the legislation mentioned and will come into effect on March 1, 2024. It specifies the deadlines for various categories of taxable residents and non-resident persons, legal persons, and natural persons. The registration requirements for legal persons seeking exemptions under the Corporate Tax Law are also reviewed, with deadlines for submitting exemption requests remaining unchanged.
All taxable persons must submit registration applications for corporate tax to the Authority within specified periods, with an administrative fine of 10,000 dirhams imposed for non-compliance. The general clarification includes examples to help taxpayers understand how registration periods apply to each category of taxable persons and encourages adherence to ensure compliance and avoid fines.