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Are You a Business Owner in the UAE? Stay Compliant and Avoid Fines with JK Management Consultancy
The UAE’s Federal Tax Authority (FTA) has announced a new grace period for businesses that have not yet updated their tax registration.
Ensure your business remains compliant by updating your tax registration today. Let’s explore how this grace period can benefit you.
Corporate Income Tax Registration
Corporate tax is a direct tax imposed on the net income or profit of corporations and other businesses. In the UAE, corporate tax aligns with international standards and supports sustainable economic growth.
Who Needs to Register for Corporate Tax?
Corporate tax applies to:
Companies operating within the UAE.
Foreign entities with a significant presence in the UAE.
Free zone entities (subject to qualifying conditions).
New Grace Period for Tax Registration Updates
The UAE Federal Tax Authority (FTA) has announced a grace period from January 1, 2024, to March 31, 2025, allowing businesses to update their tax records without incurring fines or penalties.
Issue and Compliance Requirements
To stay compliant with FTA regulations, businesses must ensure all tax registration details are accurate and up to date. Key requirements include:
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Legal Name
As per the trade license or registration certificate.
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Trade License
A valid trade license issued by a UAE authority.
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Owner’s Identification
Emirates ID (for residents) or passport copy (for non-residents).
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Contact Information
Business address, contact number, and email.
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Tax Identification Number
Existing tax numbers (e.g., VAT or corporate tax).
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Business Activities
Determined by your trade license.
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Bank Details
UAE bank account details for financial transactions.
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Proof of Authorized Signatory
Documents like a power of attorney or board resolution.
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Financial Records
Recent audited financial statements or bank statements.
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Corporate Documents
MOA or AOA for corporations.
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Previous Tax Filings
Copies of prior tax filings or certificates, if applicable.
Administrative Penalties for Non-Compliance
Failing to update your tax records within the prescribed period may result in penalties ranging from AED 1,000 to AED 10,000. However, during the grace period, these penalties are waived, providing businesses an opportunity to comply without financial repercussions.
This initiative aims to enhance tax record accuracy and ease the burden on businesses. Take advantage of this grace period to avoid penalties and ensure compliance.
How to Avoid Penalties on Your Tax Registration
Regularly review and update your tax records.
Work with a trusted tax consultant for expert assistance.
Work with a trusted tax consultant for expert assistance.
Timely updates are critical to maintaining compliance with FTA regulations and avoiding fines.
How Can JK Management Consultancy Support You?
Feeling overwhelmed by the tax registration process? JK Management Consultancy is here to help.
With over 5 years of experience, we have assisted countless businesses in the UAE and Saudi Arabia, ensuring they remain compliant while focusing on growth.
As a trusted business consultancy, JK Management Consultancy provides comprehensive support for:
- Tax registration and compliance.
- Document preparation and submission.
- Expert advice to streamline the process.
Contact JK Management Consultancy today and ensure your business’s compliance effortlessly. Let us handle the complexities of tax registration while you focus on achieving your business goals.
