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In a significant move to support newly established businesses in the United Arab Emirates, the Federal Tax Authority (FTA) has announced an extension for corporate tax filing deadlines and payments. This decision, made in 2024, provides a grace period for certain entities, easing their transition into the new corporate tax regime. Here’s what businesses need to know about the updated corporate tax deadline 2024 and how it affects them.

The Corporate Tax Deadline 2024 Extension: Who Benefits and How?

Eligible Entities for the Corporate Tax Deadline Extension

The corporate tax deadline extension applies to businesses that:

  • Were formed, established, or recognized on or after June 1, 2023.
  • Have a financial year ending on or before February 29, 2024.
  • Have a corporate tax period shorter than 12 months.

New Corporate Tax Filing Deadline 2024

For these businesses, the new corporate tax filing deadline is December 31, 2024. This extension allows new businesses extra time to comply with the corporate tax requirements.

Why Did the FTA Extend the Corporate Tax Deadline 2024?

According to FTA Director General Khaled Al Bustani, this extension is aimed at promoting timely and accurate tax filings. Businesses are encouraged to meet the new corporate tax deadline 2024 without undue pressure or risk of penalties.

Understanding UAE’s Corporate Tax Framework

2024 Corporate Tax Implementation Date

Effective for financial years beginning on or after June 1, 2023.

Corporate Tax Rates

  • Standard rate: 9%
  • Taxable profits below Dh375,000 ($102,100): 0%

Applicability of the Corporate Tax

Applies to income exceeding Dh375,000 annually.

Registration Requirements and Penalties

Businesses should keep in mind the corporate tax registration deadline was June 30, 2023. Missing this deadline incurs a Dh10,000 penalty. This rule applies to all resident commercial entities in the UAE.

Implications for Businesses

The corporate tax deadline extension has several advantages:

  • More preparation time to comply with corporate tax filing.
  • Extended time for better cash flow management.
  • An opportunity for businesses to meet compliance requirements without penalties.

Best Practices for Meeting the Corporate Tax Deadline 2024

Early Preparation for the Corporate Tax Filing Deadline 2024:

 Start preparing financial statements and tax obligations early.

Seek Expert Advice on Corporate Tax for 2024:

Consult with tax professionals to ensure proper understanding of UAE corporate tax laws. tax consultant services.

Stay Informed About Changes to the Corporate Tax

Keep up with updates from the Federal Tax Authority regarding further corporate tax deadlines or extensions.

Conclusion

Navigating the complexities of the corporate tax deadline 2024 in the UAE can be overwhelming, but you don’t have to do it alone. At Parker Russell UAE, our team of experienced tax professionals is here to guide you through every step of the process. Whether you’re a newly established business or an established entity, we can help you:

  • Ensure timely and accurate tax filings.
  • Optimize your corporate tax strategy for compliance.
  • Avoid penalties and manage your cash flow efficiently.

Contact Parker Russell UAE today for expert advice and personalized support on meeting the corporate tax deadline 2024. Let us handle the complexities, so you can focus on growing your business.

Chat with us now!