The Federal Tax Authority underscores the significance of promptly registering for Company Tax to profit from the exemption from late registration penalties

As a part of its complete marketing campaign to lift consciousness of Company Tax amongst enterprise sectors, the Federal Tax Authority (FTA) held its third workshop of the 12 months in Ras Al Khaimah (RAK), devoted to familiarising individuals with the foundations for figuring out taxable earnings below the Company Tax framework.

In a press assertion issued at this time, the FTA highlighted that this workshop kinds a part of a sequence of occasions, delivered each just about and in particular person throughout all emirates of the nation, which is able to proceed all through 2025. The FTA famous that greater than 2,300 individuals have benefitted from the three consecutive workshops not too long ago held in Dubai, Abu Dhabi, and RAK — together with representatives from enterprise sectors and stakeholders from each the private and non-private sectors concerned in taxation.

In the course of the workshop, the FTA emphasised the significance for entities topic to Company Tax – who haven’t but registered – to promptly submit their registration functions with a purpose to profit from the esteemed Cupboard determination relating to the initiative to exempt Company Tax payers and sure classes of exempt individuals, who’re required to register with the FTA, from administrative penalties ensuing from late submission of registration functions past the legally prescribed deadline.

The FTA clarified that entities topic to Company Tax (or exempt individuals required to register) who’ve accomplished their tax registration to profit from the exemption initiative should submit their tax returns (or annual declarations) inside a interval not exceeding seven months from the top date of the registrant’s first tax interval, with a purpose to meet the exemption circumstances from penalties in accordance with the choice.

The FTA indicated that the distinctive situation for benefitting from the exemption – specifically, submitting the tax return (or annual declaration) inside a interval not exceeding seven months from the top date of the tax interval – applies solely to the primary tax interval of the entity topic to tax (or the exempt particular person required to register), no matter whether or not the due date for the primary tax return (or first annual declaration) falls earlier than or after the efficient date of the brand new determination.

The FTA affirmed its dedication to the continual enhancement of providers offered to help and help enterprise sectors, consistent with its plans to determine a tax surroundings that encourages compliance. That is achieved by way of ongoing consciousness initiatives concentrating on all classes of taxpayers, aimed toward familiarising them with tax laws and procedures utilizing numerous strategies that guarantee the knowledge is obvious and straightforward to use.

The FTA famous that its representatives responded to individuals’ enquiries throughout the workshop in RAK, which was attended by roughly 440 stakeholders concerned within the implementation of Company Tax, together with a number of officers from related entities in each the private and non-private sectors.

In the course of the workshop, representatives of the FTA offered a complete clarification of the Company Tax Legislation and its associated selections, the necessities for compliance with the legislation, the registration procedures by way of the “EmaraTax” digital tax providers platform, the factors for figuring out taxable individuals, clarification of the relevant charges and tax durations, in addition to the mechanism for implementing the provisions set out within the Company Tax Legislation.

The FTA defined that the workshop highlighted the foundations for figuring out taxable earnings below Company Tax, together with how it’s recognized and calculated, the strategy for calculating the tax due, and the particular accounting requirements utilized for Company Tax functions. It additionally lined the preparation of monetary statements in accordance with the accounting requirements adopted by the taxable particular person, the accrual-based accounting rules whereby earnings is recognised when earned and bills when incurred, in addition to an outline of monetary property, monetary liabilities, and the therapy of fairness in accordance with their definitions below Worldwide Monetary Reporting Requirements (IFRS). Moreover, the relevant accounting strategies adopted by the taxable particular person and the price accounting technique have been additionally addressed.

The FTA’s representatives burdened the significance for taxable individuals to familiarise themselves with the Company Tax Legislation, the implementing selections, and the related tips, all of which can be found on the FTA’s official web site by way of the next hyperlink: https://tax.gov.ae/ar/default.aspx.