Corporate Tax Registration Timelines for Non-Resident Juridical Persons in the UAE

Introduction

With the enforcement of Federal Decree-Law No. 47 of 2022, corporate tax registration has become a critical compliance requirement for all taxable persons, including non-resident juridical entities. The FTA Decision No. 3 of 2024, effective from March 1, 2024, outlines the timelines for these registrations. This article focuses on the specific requirements for non-resident juridical persons.

Non-Resident Juridical Persons

Non-resident juridical persons must register based on the establishment of a Permanent Establishment (PE) or a nexus in the UAE. The deadlines differ depending on whether the entity became a non-resident person either prior to or after March 1, 2024.

Prior to March 1, 2024

For entities with a PE or nexus in the UAE before March 1, 2024, the registration application must be submitted based on the following criteria:

• Permanent Establishment: Registration is required within nine months from the date the PE is recognized.

• Nexus: Registration is required within three months from the effective date of FTA Decision No. 3 of 2024 (by May 31, 2024).

Examples

1. Company G: Incorporated in the USA, opened a Dubai branch on May 1, 2023, fulfilling PE conditions by December 1, 2023, must register by September 1, 2024.
2. Company H: Incorporated in the UK, began a construction project in Dubai on August 1, 2023. However, due to the international agreement for avoidance of double taxation between UK and UAE, construction projects will be deemed to have a PE if it lasts more than 12 months. Therefore, the Company will be not required to register.

On or After March 1, 2024

For entities becoming non-resident persons on or after March 1, 2024, the registration deadlines are as follows:

• Permanent Establishment: Registration is required within six months from the PE recognition date.

• Nexus: Registration is required within three months from establishing the nexus.

Examples

1. Company K: Incorporated in Luxembourg, opened an Abu Dhabi branch on July 1, 2024. However, the requirements to have a PE was fulfilled on 1st January 2025. Therefore, the company must register by July 1, 2025, following six months of meeting the requirements for PE establishment.
2. Company L: Incorporated in Saudi Arabia, purchased a commercial property in the UAE on April 7, 2024, must register by July 7, 2024, upon establishing a nexus.

Conclusion

Non-resident juridical persons must be diligent in identifying their PE or nexus status and adhering to the specific registration timelines to avoid administrative penalties. FTA Decision No. 3 of 2024 provides a comprehensive framework to ensure compliance with the UAE’s corporate tax regulations.

Summary

This article discusses the corporate tax registration timelines for non-resident juridical persons in the UAE following the enforcement of Federal Decree-Law No. 47 of 2022 and FTA Decision No. 3 of 2024. It outlines registration requirements based on the establishment of a Permanent Establishment (PE) or nexus in the UAE and provides examples for entities before and after March 1, 2024. For entities prior to this date, registration deadlines vary depending on PE recognition, while for those on or after March 1, 2024, deadlines are based on PE recognition or nexus establishment. The article emphasizes the importance of compliance to avoid penalties and highlights the framework provided by FTA Decision No. 3 of 2024 for corporate tax regulation compliance in the UAE.

Disclaimer: 
The Content offer general guidance and should not be considered legal, financial, or tax advice. Consult qualified professionals for personalized guidance. While efforts have been made to ensure accuracy, no guarantee is provided for completeness or applicability to individual situations. Users are responsible for their interpretation and actions based on this information, at their own risk. 

For understanding more about Corporate Tax, VAT Updates, Tax Law and Registration reach out to us on: contact@acme-group.me| +971 52 740 1169