Postponement of the Deadline to File a Tax Return and Settle the Corporate Tax Payable for Certain Tax Periods for the Purposes of Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses and its amendments
The Federal Tax Authority (FTA) has recently issued Decision No. 7 of 2024, announcing an important extension for the UAE Corporate Tax (CT) filing deadline. This change offers more flexibility and time for businesses to meet their compliance requirements under the UAE’s new Corporate Tax regime.
Here are the key details:
1. New Deadline for Filing Corporate Tax Returns:
The FTA has extended the Corporate Tax Return filing deadline to 31st December 2024. This deadline applies to:
- Taxable persons incorporated, established, or recognized on or after 1st June 2023.
- Tax periods ending on or before 29th February 2024.
2. Who Does This Apply To?
This extension specifically affects businesses that were recently incorporated or began operations on or after 1st June 2023, giving them more time to ensure full compliance with the UAE’s Corporate Tax Law. It also applies to businesses with tax periods ending before the end of February 2024.
For businesses incorporated before this date, the existing deadlines remain in place, and they must continue to follow the original Corporate Tax timelines.
3. Why Is This Extension Important?
This extension provides businesses with additional time to:
- Ensure they have prepared accurate financial statements and other required documentation.
- Review their tax positions and seek clarity on the new Corporate Tax rules.
- Optimize their tax planning strategies to align with the new regulations.
The extra time also allows companies to stay up to date with any future announcements from the FTA, as the implementation of Corporate Tax in the UAE continues to evolve.
4. Failure to Comply:
Even with the extended deadline, failure to submit the Corporate Tax return by 31st December 2024 may lead to penalties from the FTA. It is crucial to be proactive and make use of the extended timeline to ensure compliance.
With the extended filing deadline of 31st December 2024, businesses have a critical window to finalize their tax positions, compile necessary documentation, and ensure full compliance with the UAE’s Corporate Tax Law. While this extension provides more time, it’s essential to act early to ensure smooth processing and avoid penalties.
Need Support?
Contact Us If you need assistance with your Corporate Tax filing or have any questions regarding this extension, feel free to contact our tax advisory team. We are here to help you navigate the complexities of the new Corporate Tax regulations.
