Why Updating Tax Registration Information is Crucial
- Delays in processing tax returns
- Incorrect tax assessments
- Potential penalties for non-compliance
- Complications in VAT and corporate tax filings
Key Benefits of the Grace Period
- Penalty Relief: Businesses updating their tax information within the specified timeframe can avoid penalties
- Refund of Previously Paid Penalties: Taxpayers who have already paid penalties for failing to update their tax records between 1 January 2024 and the grace period deadline may be eligible for a refund under Cabinet Decision No. (105) of 2021.
- Administrative Ease: The process simplifies tax compliance and ensures smooth transactions with the tax authority.
- Regulatory Compliance: Helps businesses align with UAE tax laws and maintain accurate financial records.
- Reduced Operational Disruptions: Prevents delays in VAT and corporate tax filings that could affect business operations.
Steps to Update Tax Registration Information
To take advantage of the grace period, businesses must follow these steps:
1. Review Current Tax Registration Details
- Log in to the EmaraTax portal and verify the accuracy of business details.
- Check for discrepancies in trade licenses, Emirates IDs, and business ownership information.
- Ensure that business activity, address, and contact details are correctly registered.
2. Gather Required Documents
The following documents may be necessary for updating tax registration details:
- Trade License (updated if applicable)
- Emirates ID or Passport (for individuals or business owners)
- Certificate of Incorporation (for corporate entities)
- Proof of Business Address
- Updated Articles of Association (if applicable)
3. Submit the Update Application
- Use the EmaraTax portal to submit the updated documents.
- Ensure all details are correctly entered to avoid delays.
- Monitor the status of the update and respond to any additional requests from the FTA.
4. Confirm Compliance Before the Deadline
- Businesses should complete the update before March 2025 to benefit from the grace period.
- Keeping a record of the updated registration ensures compliance in future tax assessments
FTA Encourages Compliance
His Excellency Khalid Ali Al Bustani, Director General of the FTA, emphasized that this grace period provides businesses with an opportunity to align their records with tax laws. The initiative aligns with the UAE’s commitment to maintaining a transparent and flexible tax environment while promoting compliance.
The FTA has also issued a public clarification on the grace period, which can be accessed on the FTA official website for more details.
How Gateway Accounting Can Help
At Gateway Accounting, we specialize in tax compliance, VAT filing, and corporate tax advisory. Our experts can assist your business in navigating the tax registration update process, ensuring accuracy and compliance with FTA regulations. Don’t wait until the deadline—contact Gateway Accounting today for expert tax support and seamless compliance!
Key Considerations for Tax Filing
A corporate tax return consists of several sections, including:
- Taxable Income Computation – Adjustments to net profit
- Tax Credits and Reliefs – Foreign tax credits, group tax reliefs
- Schedules for Specific Adjustments – Transactions with related parties, transfer pricing, exempt income, and deferred gains/losses
Deadlines for Filing
- The corporate tax return must be submitted within 9 months from the end of the financial year.
- Late filing can result in penalties and fines imposed by the FTA.
Common Mistakes to Avoid
- Incorrect Taxable Income Reporting – Ensure accuracy in income statements
- Missed Deadlines – Always submit returns before the due date
- Incomplete Documentation – Maintain proper financial records for compliance
Gateway Accounting specializes in assisting businesses with corporate tax filing, ensuring compliance with UAE tax laws. By registering on time, maintaining accurate financial records, and correctly filing tax returns, businesses can avoid penalties and optimize their tax obligations. For expert tax consultation and streamlined filing services, contact Gateway Accounting today.