On 31 December 2024, certain companies in the UAE must pay corporate tax!

27 / 09 / 2024

25 September the UAE tax authorities issued Decision No. 7 concerning the deadlines for filing a corporate tax return and, accordingly, paying it for certain categories of taxpayers (in the context of Article 48 and paragraph 1 of Article 53 of Federal Decree-Law No. 47 of 2022).

For companies that:

are incorporated or recognised under UAE law on 1 June 2023 or later;
for companies whose tax period ended on 24 February 2024 or earlier.

The FTA has set the deadline for filing the corporate income tax return and the deadline for paying it as 31 December 2024.

This means that if companies registered on 1 June 2023 or later chose a short first reporting (tax) period, for example, 6 months from incorporation, they will be the first to file a corporate tax return and pay corporate tax in the UAE.

This once again shows that:

1) any action relating to the choice of financial year, asset accounting, or the execution of transactions must be analysed from the perspective of the applicable tax legislation in the UAE;

2) it is necessary to take a serious approach to developing an accounting policy for UAE tax purposes. Such an accounting policy is prepared once for the entire period of the company’s activity. UAE tax legislation provides various options for choosing the approach to accounting for certain types of assets and transactions. This choice (Election or Application) must be made when filing the first corporate tax return on the FTA website.

The experts at ALPINE Tax are ready to promptly assist you with your accounting and tax compliance matters in the UAE.