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Deloitte Business Tax news: UAE - Important Deadlines - Oct to Dec 2024

22 October 2024 - As the majority of companies in the United Arab Emirates (UAE) that follow the calendar year are approaching the end of their initial tax period, it is crucial to be mindful of specific corporate tax (CT) related due dates to ensure timely compliance with the law and prevent any potential penalties or inconveniences in the future.

Tax Group Application:

Forming a Tax Group allows multiple entities to register and be treated as a single taxable entity for UAE CT purposes. By consolidating their tax filings, group entities can optimize their tax obligations and streamline compliances.

If businesses intend to establish a Tax Group from their first tax period, (subject to all conditions prescribed in the UAE CT Law being met), the last date to submit such an application is the last day of that first tax period. 

It is important for the parent entity and every other tax group member of the proposed Tax Group to acquire an individual CT Registration prior to the submission of the application to form the Tax Group. Consequently, each entity seeking to be part of the Tax Group must complete the process of obtaining CT Registration independently before applying for the Tax Group. 

Below is a table illustrating the applicable due dates for submitting the application to form a Tax Group under the UAE CT Law:


Tax Period of Entities in the                              Deadline for Submitting the 
Proposed Tax Group 
                                          Tax Group Application

1 July 2023 – 30 June 2024                                    30 June 2024 (Deadline already passed)
1 January 2024 – 31 December 2024                   31 December 2024
1 April 2024 – 31 March 2025                               31 March 2025

 

Failure to submit the application within the specified timeframe may result in the forfeiture of the opportunity to form a Tax Group for the mentioned tax period. Consequently, all group entities will be taxed individually, potentially leading to higher tax liabilities, and increased administrative burdens.

Postponement of deadline for filing the return of income:

The Federal Tax Authority (FTA), through decision no. 7 of 2024 issued on 25 September 2024 and a public clarification issued on 10 October 2024, has postponed the deadline to file a tax return and settle the Corporate Tax payable for certain Tax Periods. In continuation of our earlier communication released on 12 September 2024, we draw your attention to the upcoming deadlines for companies/businesses having a shorter tax period starting on or after 1 June 2024 and ending before 29 February 2024.

Postponed Deadlines for Filing Corporate Tax Returns and Settling Corporate Tax Payable for Taxable Persons with Shorter Tax Period:

Conditions                          Deadline for Filing                      Deadline for 
                                               Corporate Tax                              Settling Corporate 
                                                Returns                                         Tax Payable

Applicable for                     31 December 2024                      31 December 2024
taxable persons
fulfilling the
following conditions:

- Incorporated, established,
or recognized under the
legislation of the
UAE on or after 1 June 2023.

- The tax period ended on or
before 29 February 2024.

UAE Corporate Tax Registration:

On 4 June, the FTA issued a public clarification regarding the registration timelines for Taxable Persons for CT. While some deadlines have already passed, we highlight below some of the upcoming deadlines for companies/businesses incorporated and licensed prior to 1 March 2024.

Where a juridical person was incorporated and licensed prior to 1 March 2024, it must submit a tax registration application based on the month of their license issuance, in accordance with the table below:

Date of License Issuance                                   Deadline for Submitting a
                                                                                  Tax Registration Application

1 Aug – 31 Aug                                                        31 Oct 2024
1 Sep – 31 Sep                                                         31 Oct 2024
1 Oct – 31 Oct                                                          30 Nov 2024
1 Nov – 31 Nov                                                        30 Nov 2024
1 Dec – 31 Dec                                                         31 Nov 2024

Where a juridical person is incorporated, established, or recognized post 1 March 2024, it must submit a tax registration application in accordance with the table below:

Category of juridical person                    Deadline for Submitting a
                                                                         Tax Registration Application

Where a Person is incorporated                 (3) three months from the 
or otherwise established or                        date of the incorporation
recognized under the applicable                establishment, or recognition
recognition legislation in the UAE

If a juridical person holds multiple licenses, the license with the earliest date of issuance will be considered.

Other deadlines may apply depending on specific circumstances such as the category of taxable person or residential status, necessitating further analysis and interpretation. To ensure timely compliance, all companies/taxpayers should review their filing deadlines and comply accordingly.

Furthermore, an update has been made to Cabinet Decision No.75, which introduces a penalty of AED 10,000 for any taxable person who fails to submit their tax registration application within the specified timeframes mentioned above.

Contacts

We have a dedicated Business Tax team based in the UAE who have in-depth experience and can support you throughout your readiness journey. Please get in touch with one of our tax experts listed on the following page.

You can also contact us and submit all your queries on this email cituae@deloitte.com.

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