The deadline for filing a tax return and paying corporate tax payable has been extended by the Federal Tax Authority (FTA) to December 31, 2024. This extension applies to short tax periods that end on or before February 29, 2024.
To comply with Federal Decree-Law Number 47 of 2022 on the Taxation of Corporations and Businesses and its amendments, the FTA released Decision Number 7 of 2024 on the deadline postponement to file a tax return and settle the corporate tax payable for certain tax periods.
“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,” Khaled Ali Al Bustani, Director-General of the FTA said, as reported by Zawya.
“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,” the top official added.
According to the FTA’s decision, taxable individuals having a short tax period that ends on or before February 29, 2024, have until that date to file their corporate tax return (e.g. those with expiration dates of December 31, 2023, January 31, 2024, or February 29, 2024) are moved to December 31, 2024, and the corporate tax payable for these tax periods may now also be settled with the FTA by December 31, 2024.
The decision is intended for “Taxable Persons” who were incorporated, established, or recognised on or after June 1, 2023, and whose first tax period was shorter than the customary 12-month period and whose financial year ended on or before February 29, 2024.