UAE - FTA issues Public Clarification on Registration Timelines

On 4 June 2024, the Federal Tax Authority (FTA) in the United Arab Emirates (UAE) published a Corporate Tax (CT) Public Clarification on Registration Timelines for taxable persons (referred to as ‘Clarification’). The Clarification aims to clarify the issues relating to timeline when a taxable person is required to submit tax registration application to the FTA for CT purposes (referred to as ‘CT Registration application’).

Background

The CT Law gives the FTA the authority to prescribe a timeline for any Taxable Person to register for Corporate Tax. The FTA has prescribed timelines for CT registration in FTA Decision No. 3 of 2024 (FTA Decision 3 of 2024) which is effective from 1 March 2024. There were certain areas of the aforesaid decision which needed further clarity; hence the FTA has issued a public clarification with examples to explain how the timelines would apply to different taxable persons, thereby addressing various interpretational and practical issues.

The Clarification mentions that it states the position of the FTA and neither amends nor seeks to amend any provision of the UAE CT Law. The Clarification is effective as of the date of implementation of the UAE CT Law, unless stated otherwise.

With the above background, we have summarized in the alert key guidance and important takeaways from the 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