The UAE Federal Tax Authority (FTA) has announced an extension for the filing of Corporate Tax Returns and the settlement of Corporate Tax Payable.
The new deadline is set for 31 December 2024, applicable to short Tax Periods concluding on or before 29 February 2024.
This extension is granted through Decision No. 7 of 2024, which defers the deadline for specific Tax Periods as outlined in Federal Decree-Law No. 47 of 2022 regarding the Taxation of Corporations and Businesses and its amendments.
UAE Federal Tax Authority extends corporate tax deadline
“We are firmly dedicated to implementing proactive measures that benefit taxpayers. Acknowledging the challenges that businesses might encounter with their first Corporate Tax period being less than a year, we have delayed the deadline for certain taxpayers to file their Tax Returns and settle their Corporate Tax Payable. This is aimed at assisting them in fulfilling their Corporate Tax obligations, particularly for new businesses during their initial Tax Periods,” said FTA Director-General Khaled Ali Al Bustani.
The extension applies to Taxable Persons incorporated, established, or recognised on or after 1 June 2023, with a financial year ending on or before 29 February 2024, resulting in a first Tax Period shorter than 12 months.
“Our aim is to promote timely and accurate tax filings by providing a reasonable timeframe for taxpayers to meet their obligations, thus alleviating undue pressure and the risk of administrative penalties. This Decision underscores our ongoing commitment to creating a supportive and fair tax environment in the UAE, which encourages compliance while minimising tax burdens,” Al Bustani added.
For example, a company incorporated on 10 June 2023 with a financial year running from 1 January to 31 December would have its first Tax Period from 10 June 2023 to 31 December 2023.
Under the new decision, the deadline is now 31 December 2024. This extension aims to provide businesses with extra time to fulfil their tax obligations and avoid potential penalties.
