The number of companies registered for corporate tax in the UAE has surpassed 450,000, demonstrating a strong commitment from the business sector to align with the new tax system, according to Khalid Ali Al Bustani, director general of the Federal Tax Authority (FTA).
Speaking to the Emirates News Agency (WAM) on the sidelines of the FTA’s second strategic partners meeting held recently in Dubai, Al Bustani highlighted the vital role of collaboration with partners in achieving the FTA’s objectives and supporting the national economy.
He highlighted that the annual meeting is a remarkable opportunity to recognize and honor this year’s 64 partners, stressing that the Authority’s success in achieving its goals is largely due to their invaluable support.
Al Bustani also underscored the Authority’s ongoing efforts to strengthen partnerships and expand the reach of awareness campaigns and training workshops, aiming to provide a clearer understanding of the tax system and facilitate compliance for businesses.
He reaffirmed the Authority’s commitment to enhancing its electronic platforms to streamline processes, reduce bureaucracy, and improve the overall customer experience.
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UAE FTA extends corporate tax deadlines
In September 2024, FTA announced an extension of the deadline for filing Tax Returns and settling Corporate Tax Payable to December 31, 2024. This extension applies to short Tax Periods that conclude on or before February 29, 2024.
This change was formalized in Decision No. 7 of 2024, concerning the postponement of the deadline for certain Tax Periods, in accordance with Federal Decree-Law No. 47 of 2022 on Corporate and Business Taxation and its amendments.
According to the FTA’s Decision, the deadline for filing the Corporate Tax Return for Taxable Persons with short Tax Periods ending on or before February 29, 2024 (such as those ending on December 31, 2023, January 31, 2024, or February 29, 2024) has been extended to December 31, 2024. Additionally, Corporate Tax Payable for these periods can now also be settled with the FTA by this new deadline. This Decision specifically targets Taxable Persons that were incorporated, established, or recognized on or after June 1, 2023, with financial years concluding on or before February 29, 2024, resulting in a first Tax Period shorter than the usual 12 months.
For instance, a company incorporated on June 10, 2023, with a financial year running from January 1 to December 31 would have a first Tax Period from June 10, 2023, to December 31, 2023. Before the issuance of FTA Decision No. 7 of 2024, this company would have been required to file its Tax Return and settle the Corporate Tax Payable by September 30, 2024, as per Corporate Tax Law provisions. However, following the new Decision, the deadline has now been extended to December 31, 2024.
