Extension for UAE Corporate Tax Returns and Payment Deadlines in Specified Cases
18 October 2024 - The United Arab Emirates (UAE) Corporate Tax (CT) return filing, along with the CT liability payment for certain entities incorporated in the UAE in June 2023 or later, was initially due on 30 September 2024. However, on 25 September 2024, the Federal Tax Authority (FTA) issued Decision No. 7 of 2024, extending this deadline to 31 December 2024, for tax periods ending on or before 29 February 2024. In alignment with this decision, the FTA issued a Public Clarification on 10 October 2024, providing additional guidance regarding the new deadline for filing CT returns and settling CT liabilities.
Below is a summary of the clarification with practical scenarios. For comprehensive understanding, it is recommended to refer to our earlier communications released on 12 August 2024 and 12 September 2024 which discuss the determination of the First Tax Period of a Juridical Person, and its interplay with return filing and CT payment deadline.
December 2024 Deadline for Specific Taxable Persons
The new deadline of 31 December 2024 applies primarily to two groups of taxable persons:
- Those with a short tax period because they ceased to exist due to liquidation, cessation, or any other reason, on or prior to 29 February 2024.
- Those with a short tax period ending by 29 February 2024, who were incorporated between 1 June 2023 and 1 September 2023, and follow specific financial years, as illustrated below.
Taxable Persons Unaffected by aforesaid FTA Decision No. 7 of 2024
The clarification also outlines indicative scenarios for taxable persons who will adhere to their original CT payment and return filing deadlines, as specified in Articles 48 and 53 of the UAE CT Law. These deadlines are set for nine (9) months after the end of the tax period. The FTA Decision No. 7 of 2024 will not affect these taxable persons.
Penalty Exemption for Incorrect Returns Filed by Original Deadline
The clarification states that if incorrect returns were filed by the original deadline of 30 September 2024, the penalty of AED 500—as outlined in Violation No. 9 of the Table of Violations and Administrative Penalties annexed to Cabinet Decision No. 75 of 2023—will not apply due to the extension granted by FTA Decision No. 7 of 2024.
Key Takeaways
The aforementioned extension has provided relief for the covered entities, granting these taxpayers more time to prepare and fulfil their tax obligations under UAE CT Law. Since this extended deadline applies only to specific entities incorporated after 01 June 2023, such companies are advised to carefully determine their first tax period, as well as their CT return filing and payment due dates, in accordance with the latest FTA Decision and Public Clarification.
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.
