According to the UAE Federal Decree-Law No. 47 of 2022 on taxation of corporations and businesses (the “Corporate Tax Law”), businesses are subject to UAE Corporate Tax from the beginning of their first financial year that starts on or after 1 June 2023. This tax is a form of direct tax levied on the net income or profit of corporations and other entities from their business. Top Tax Consultants in UAE assists Taxable Persons to effectively determine their tax period and ensure compliance with the Corporate Tax Law.
For businesses operating in the UAE during the financial year from 1 June 2023 to 31 May 2024, the following timeline must be adhered to:
Info graph: Financial Year 1 June 2023 to 31 May 2024
In this period, businesses are advised to seek the expert services of top Tax Consultants in UAE, well in advance. Tax Consultants provide professional guidance and ensure all required documents are in order and compliant with statutory regulations. This proactive approach can help streamline the filing process and reduce the risk of missing deadlines, which consequently incur fines and penalties.
| Deadline for License Issuance | Deadline for Corporate Tax Registration |
| 1 January to 31 January | 31 May 2024 |
| 1 February to 28/29 February | 31 May 2024 |
| 1 March to 31 March | 30 June 2024 |
| 1 April to 30 April | 30 June 2024 |
| 1 May to 31 May | 31 July 2024 |
| 1 June to 30 June | 31 August 2024 |
| 1 July to 31 July | 30 September 2024 |
| 1 August to 31 August | 31 October 2024 |
| 1 September to 30 September | 31 October 2024 |
| 1 October to 31 October | 30 November 2024 |
| 1 November to 31 November | 30 November 2024 |
| 1 December to 31 December | 31 December 2024 |
For the subsequent fiscal year, which runs from 1 January 2024 to 31 December 2024, businesses must follow this timeline:
Infographic: Financial Year 1 January 2024 to 31 December 2024
During this period, businesses have the opportunity to learn from their first filing experience. It's advisable to establish robust accounting practices and maintain accurate records throughout the year. This diligence can significantly streamline the tax filing process.
For the third fiscal year under the new tax regime, which extends from 1 April 2024 to 31 March 2025, the following timeline applies:
Infographic: Financial Year 1 April 2024 to 31 March 2025
By this point, businesses should have a solid grasp of the tax filing process. However, it's crucial to remain vigilant about updates or changes in tax regulations. Staying informed ensures continued compliance with UAE tax laws.
The UAE Ministry of Finance has recently updated its penalty framework for late corporate tax registration. As part of this new framework, companies that fail to register for corporate tax by the stipulated deadline face a penalty of Dh10,000. This measure underscores the importance of timely compliance with tax obligations and reinforces the UAE's commitment to maintaining a transparent and efficient tax system.
Adhering to the prescribed timelines for corporate tax filing in the UAE is an essential regulatory requirement; it is a fundamental part of maintaining a stable business environment. Failing to meet these deadlines can lead to a range of severe consequences:
For businesses to effectively determine their tax period and ensure compliance with the Corporate Tax Law, it is advisable to avail the expert services of Top Tax Consultants in UAE. Tax Consultants in UAE are committed to assisting businesses with professional corporate tax advisory. Thus, contact us today and we shall be glad to assist you.