Businesses with shorter tax periods can now benefit from the extended deadline, easing the compliance burden
The Federal Tax Authority (FTA) has extended the deadline for businesses to file their corporate tax returns and settle any payable taxes to December 31, 2024. This extension applies to tax periods ending on or before February 29, 2024. The decision is particularly aimed at businesses with first corporate tax periods shorter than the standard 12-month duration.
This announcement offers relief to taxable entities that were incorporated, established, or recognized on or after June 1, 2023, and whose financial year ends by February 29, 2024. Due to the shortened tax period, these businesses may have faced challenges in meeting the original filing deadlines.
Khaled Ali Al Bustani, Director General of the FTA, emphasized the importance of fostering a supportive tax environment in the UAE. He acknowledged the challenges that businesses with shorter tax periods might encounter and highlighted the FTA’s commitment to encouraging timely compliance while minimizing tax burdens.
“This decision reflects our ongoing dedication to creating an equitable tax system in the UAE, allowing businesses to comply without undue pressure,” said Al Bustani.
The extension is part of the FTA’s Decision No. 7 of 2024, which falls under the framework of Federal Decree Law No. 47 of 2022 on the taxation of corporations and businesses. The decision aims to support the evolving business environment and align tax compliance with financial planning.
The FTA has encouraged all taxable persons to review the relevant corporate tax laws and associated legislation available on its website, ensuring they remain informed about their obligations.
This move is expected to ease the administrative load on affected businesses, giving them ample time to meet tax obligations without financial strain.
4o
