The Federal Tax Authority (FTA) in the UAE has 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, WAM reported, is 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.
Commitment to supporting taxpayers
Khaled Ali Al Bustani, director-general of the FTA, emphasized the authority’s commitment to assisting all taxpayers. He noted the FTA’s dedication to implementing proactive measures that support taxpayers. Recognizing the challenges that businesses may face during their initial Corporate Tax period, which is less than a year, he mentioned that the deadline for certain taxpayers to file their Tax Returns and settle their Corporate Tax Payable has been delayed to help businesses, particularly new ones, meet their Corporate Tax responsibilities during their first Tax Period.
Promoting timely compliance
He also expressed the goal of promoting timely and accurate tax submissions by providing a reasonable timeframe for fulfilling obligations, which would reduce undue stress and potential administrative penalties. He stated that this Decision reflects the FTA’s ongoing commitment to creating a supportive and fair tax environment in the UAE, encouraging prompt compliance while minimizing tax burdens.
Details of the extended deadline
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.
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