UAE: FTA Postpones Corporate Tax Deadline to December 2024

by Anna Fischer

Published 2 Oct 2024

The UAE Federal Tax Authority (FTA) has extended the deadline for filing Corporate Tax (CT) returns and paying Corporate Tax.

Source: Freepik

The new deadline is now December 31, 2024, for short tax periods ending on or before February 29, 2024. This extension is outlined in Decision No. 7 of 2024, which delays the deadline for certain tax periods under Federal Decree-Law No. 47 of 2022 on Corporate Taxation and its amendments. ^[?]^[?]

UAE Federal Tax Authority postpones corporate tax filing deadline

The FTA's new decision extends the deadline for filing CT returns for businesses with short tax periods ending on or before February 29, 2024 (such as December 31, 2023, January 31, 2024, or February 29, 2024). The new filing and payment deadline is now December 31, 2024.

This change helps businesses established, recognized, or incorporated on or after June 1, 2023, with financial years ending on or before February 29, 2024, resulting in a shorter first tax period than the usual 12 months.

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

FTA Director-General

For example, a company set up on June 10, 2023, with a financial year running from January 1 to December 31, would have its first tax period from June 10, 2023, to December 31, 2023. Before, this company needed to file its tax return and pay corporate taxes by September 30, 2024. With the new decision, the deadline is moved to December 31, 2024.

Our goal is to encourage timely and accurate tax filings by offering a reasonable timeframe for taxpayers to fulfill 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.

Khaled Ali Al Bustani

FTA Director-General

This extension gives businesses more time to fulfill their tax obligations and helps them avoid potential penalties.

UAE taxes corporate tax

Anna Fischer

Construction Content Writer

Anna has background in IT companies and has written numerous articles on technology topics. Now, building up her expertise in construction and legal regulations, Anna expands the horizons of our blog and delights her readers with insightful articles.

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