When is the UAE Corporate Tax regime effective? The UAE Corporate Tax regime is effective for Financial Years starting on or after 1 June 2023.
Examples:
A Business that has a Financial Year starting on 1 July 2023 and ending on 30 June 2024 is subject to UAE Corporate Tax from 1 July 2023 (which is the beginning of the first Financial Year that starts on or after 1 June 2023).
A Business that has a Financial Year starting on 1 January 2023 and ending on 31 December 2023 will become subject to UAE Corporate Tax from 1 January 2024 (which is the beginning of the first Financial Year that starts on or after 1 June 2023).
Who is subject to UAE Corporate Tax?
UAE Corporate Tax applies to juridical persons incorporated in the UAE and to foreign juridical persons that are effectively managed and controlled in the UAE
Natural persons will be subject to Corporate Tax only if they are engaged in a Business or Business Activity in the UAE, either directly or through an Unincorporated Partnership or sole proprietorship. Cabinet Decision No. 49 of 2023 specifies further information on what would bring a natural person within the scope of UAE Corporate Tax.
3. What is a Tax Period?
Given Corporate Tax is imposed on an annual basis, it is necessary to specify the “Tax Period”. The Tax Period is the Financial Year used for preparing financial statements, which will normally be the Gregorian calendar year (i.e. from 1 January to 31 December), unless the business applies a different 12-month period for preparing its financial statements in which case it will follow that Financial Year.
4. What are the UAE Corporate Tax rates?
A) Natural persons and juridical persons
0% for Taxable Income up to and including AED 375,000.
9% for Taxable Income exceeding AED 375,000
B) Qualifying Free Zone Persons
0% on Qualifying Income..
9% on Taxable Income that is not Qualifying Income as specified in Cabinet Decision No. 55 of 2023.
5. What are the UAE Corporate Tax Return Filing Deadlines?
A) Financial Year 01 Jun 2023 to 31 May 2024
CT Law Applicable : 01 June 2023
First Tax Period : 01 June 2023 to 31 May 2024
Return Filing Deadline : 28 Feb 2025 ( 9 Months )
B) Financial Year 01 Jan 2024 to 31 Dec 2024
CT Law Applicable : 01 June 2023
First Tax Period : 01 Jan 2024 to 31 Dec 2024
Return Filing Deadline : 30 Sep 2025 ( 9 Months )
6. What is UAE Corporate Tax Registration Deadline?
A juridical person that is a Resident Person incorporated, established, or otherwise recognised prior to 1 March 2024 must apply to register for Corporate Tax within the following timeframes:
Month of License Issuance The year the license was issued is irrelevant | Deadline to apply for Corporate Tax Registration |
January or February | May 31, 2024 |
March or April | June 30, 2024 |
May | July 31, 2024 |
June | August 31, 2024 |
July | September 30, 2024 |
August or September | 31 October 2024 |
October or November | 30 November 2024 |
December | 31 December 2024 |
7. What documents are required is UAE Corporate Tax Registration ?
If the registrants is a legal person or partnership
1) Certificate of Incorporation
2) Main Trade License including licenses associated with the main license.
3) Emirates IDs, Passports and Trade Licenses of Owners
4) Emirates IDs, Passports and Proof of Authorization of authorised signatories
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