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The Federal Tax Authority announced the extension of the deadline for submitting tax returns and paying the corporate tax payable to December 31, 2024, for short tax periods ending on or before February 29, 2024..
This was stated in Federal Tax Authority Resolution No. (7) of 2024 regarding postponing the deadline for submitting the tax return and paying the tax payable for the purposes of Federal Decree Law No. (47) of 2022 regarding corporate and business tax, and its amendments, (“Authority Resolution No. (7) (for the year 2024).
Khaled Ali Al Bustani, Director General of the Federal Tax Authority, stressed the Authority’s commitment to supporting all taxable persons, explaining: “The Authority pays great attention to taking proactive measures that are in the interest of all taxable persons. Given the challenges that may face companies and businesses whose first tax period is less than one year, the Authority has postponed the deadline by which some taxable persons must submit their tax returns and pay the corporate tax payable. This aims to support taxable persons to meet their tax obligations for corporate tax purposes, especially for start-up companies during their first tax periods.».
He added: “Our goal is to encourage the timely submission of correct tax returns by providing a reasonable time frame to help taxpayers fulfill their obligations, which reduces pressure and potential administrative fines. This decision reflects the Authority’s firm commitment to promoting a supportive and fair tax environment in the UAE, which encourages compliance and contributes to reducing tax burdens.»
Pursuant to the Authority’s decision, the deadline for filing a corporate tax return for taxpayers who have a short tax period ending on or before February 29, 2024 (such as tax periods ending on December 31, 2023, January 31, 2024, or February 29, 2024) has been postponed to no later than December 31, 2024, and the corporate tax payable for these tax periods must now be paid to the Authority by December 31, 2024. This decision applies uniformly to taxable persons who were created, incorporated or recognized on or after June 1, 2023 and whose fiscal year ends on or before February 29, 2024, resulting in their first tax period being less than the normal period of (12) twelve months..
For example, if a company was established on June 10, 2023, and its fiscal year was from January 1 to December 31, then the first tax period would be from June 10, 2023 to December 31, 2023. Before the Authority’s Decision No. (7) of 2024 was issued, Submitting the tax return and paying the corporate tax payable in accordance with the provisions of the Corporate Tax Law on September 30, 2024. However, on the basis of Authority Resolution No. (7) of 2024, the deadline for submitting the tax return and paying the payable corporate tax is now December 31, 2024..
