On 27th of February, the Ministry of Finance announced a new fine of AED 10,000 for people who don't register for corporate tax on time.
It’s similar to fines one might face for registering late for other taxes, like excise tax or value-added tax.
The inception of the Corporate Tax Law on June 1st, 2023, marked a paradigm shift in the fiscal landscape of the UAE, introducing a novel taxation regime. Notably, this legislation positioned the corporate tax rate in the UAE amongst the most competitive globally. Requiring businesses making more than AED 375,000 in profits to pay a 9% tax marked a big change from the old tax rules.
In December 2023, the FTA sent out new rules about corporate taxes in the UAE. People earning money or doing business there were advised to check the updated guidelines on the FTA website to understand the Corporate Tax Law better.
However, the UAE government introduced Small Business Relief (SBR) for small businesses to help them with corporate tax. This relief is only for people or companies who live in the UAE and make up to AED 3 million in business income in a certain tax period, including any time up to December 31, 2026.
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