Following the introduction of the Corporate Income Tax (CIT) in the UAE in 2023, to register for CIT is the top priority nowadays as all businesses, regardless of whether they have a mainland, free zone or offshore license are required to register for the corporate tax. It includes both, resident and non-resident legal persons, as well as natural persons.
Essentially, new businesses must file with the UAE Federal Tax Authority (FTA) for corporate tax registration within 3 months from their date of incorporation. Registering for the corporate tax will provide them with their Tax Identification Number (TIN). Then, once the registration is complete, it will take up to 20 working days for FTA to issue the TIN. Non-compliance will result in an administrative penalty of 10,000 Dirhams (2,500 EUR).
The first tax period is to be the 2024 calendar year. Any income generated before 1st January 2024 will not be subject to Corporate Tax.
Are you a business owner in the UAE? Do you need assistance or want to learn more about Corporate Tax Registration in the UAE? Drop us an email (office@alphaprimedwc.ae) or give us a call (+971 58 5152374) at any time.
