MENA Newswire News Desk: The Federal Tax Authority (FTA) has announced a postponement for corporate tax filing and payment deadlines, providing additional time for businesses to comply. The new deadline, set for December 31, 2024, applies to certain short tax periods ending on or before February 29, 2024, under FTA Decision No. 7 of 2024. The decision affects entities subject to Federal Decree-Law No. 47 of 2022, which governs corporate taxation in the UAE.
The FTA introduced the postponement to accommodate businesses with shortened tax periods, giving them extra time to file their tax returns and settle their corporate tax obligations. Khaled Ali Al Bustani, Director-General of the FTA, emphasized the authority’s dedication to supporting taxpayers, saying, “We are committed to taking proactive measures that benefit taxpayers. Recognizing the challenges businesses with short tax periods may face, we have postponed the deadline to assist them in meeting their corporate tax obligations, especially for new businesses.”
Al Bustani added, “Our goal is to encourage timely and accurate tax filings by offering a reasonable timeframe, alleviating pressure, and minimizing administrative penalties. This decision aligns with our commitment to fostering a supportive tax environment in the UAE, encouraging compliance while reducing tax burdens.”
The FTA’s decision applies to entities whose first tax periods end on or before February 29, 2024, such as those closing their financial year on December 31, 2023, January 31, 2024, or February 29, 2024. These entities can now file their corporate tax returns and settle their tax dues by December 31, 2024, instead of the earlier deadline.
For example, a company incorporated on June 10, 2023, with a financial year ending on December 31, 2023, would previously have been required to submit its tax return and settle corporate tax by September 30, 2024. However, under the new FTA Decision No. 7 of 2024, this company now has until December 31, 2024, to comply.