The UAE Federal Tax Authority (FTA) has announced an extension for filing Corporate Tax Returns and settling Corporate Tax Payable.
The new deadline is December 31, 2024, applicable to short Tax Periods ending on or before February 29, 2024.
This extension comes through Decision No. 7 of 2024, which postpones the deadline for certain Tax Periods under Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses and its amendments, WAM said in a statement.
UAE Federal Tax Authority extends corporate tax deadline
“We are deeply committed to taking proactive measures that benefit taxpayers. Recognising the potential challenges faced by businesses with a first Corporate Tax period shorter than a year, we have postponed the deadline by which certain taxpayers must file their Tax Return and settle their Corporate Tax Payable, to assist taxpayers in meeting their Corporate Tax obligations, especially for new businesses throughout their first Tax Periods,” FTA Director-General Khaled Ali Al Bustani said.
The extension applies to Taxable Persons incorporated, established or recognised on or after June 01, 2023, with a financial year ending on or before February 29, 2024, resulting in a first Tax Period shorter than 12 months.
“Our goal is to encourage timely and accurate tax filings by offering a reasonable timeframe for taxpayers to fulfil their obligations, thereby alleviating undue pressure and potential administrative penalties. This Decision reflects our ongoing commitment to fostering a supportive and equitable tax environment in the UAE that encourages timely compliance while minimising tax burdens,” Al Bustani added.
For instance, a company incorporated on June 10, 2023 with a financial year from January 01 to December 31 would have its first Tax Period from June 10, 2023 to December 31, 2023.
Previously, this company would have had to submit its Tax Return and settle the Corporate Tax Payable by September 30, 2024. Under the new decision, the deadline is now December 31, 2024.
This extension aims to provide businesses with additional time to meet their tax obligations and avoid potential penalties.
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