Are UAE's newly formed companies meeting 3-month deadline for tax registration?

Dubai: As more businesses launch in the UAE, some of the newly created SMEs seem to be ignoring one key requirement – that they will need to immediately start on their tax registration requirements too. In fact, the rule set by the Federal Tax Authority mandates that the tax registration must be done in 3 months. “For companies incorporated after March 1, 2024, the deadline for submitting a tax registration application is 3 months from the date of incorporation,” said Sumayya Zain, CEO of Hallmark International Advisors.

“Any failure to do so will result in a penalty of Dh10,000 for delayed registration.” What this essentially means is that newly incorporated companies cannot afford to waste any time to get started on their tax registration requirements. The key for them is to submit the application on schedule – whether the FTA comes back asking for more inputs is a secondary matter.

Just file. “We have seen many SMEs remaining ignorant about their tax registration obligations, believing they have the luxury of more time,” said a tax consultant. “They don’t.

” Sumayya seconds that observation – “A leading corporate services provider in the UAE stated that several new businesses have not yet registered or were unaware of the strict deadline. “The rule is pretty straight-forward: If a company is incorporated on June 16, 2024, the last date for registration will be September 16, 2024. “It is essential for all business owners to understand that corpo.