UAE Federal Tax Authority Announces Grace Period for Corporate Income Tax Amendments

09.11.2024
Posted by: Malavika Kolera
Categories: Tax, Dubai

Author: Malavika Kolera

Chief Tax & Compliance Officer

The Federal Tax Authority (FTA) has introduced an important relief measure for businesses operating in the UAE, offering a grace period for updating corporate income tax amendments.

Key Points for Business Owners

The grace period extends from 01.01.2024 to 31.03.2025
Companies can update their records without incurring administrative penalties
Previously paid penalties during this period may be eligible for a refund
Businesses have 20 working days to notify the FTA of any changes in their information

What Information Needs to be Updated?

Company name and address
Email contact information
Business activities listed on a business license
Legal structure and form
Partnership agreements (for joint ventures)
Changes on Articles of Association (AoA) and/or Memorandum of Association (MoA)
Changes in business nature or operational address

Impact on Business Operations

The grace period provides an excellent opportunity to:

Review and update tax registration details
Ensure compliance with local regulations
Avoid unnecessary penalties
Maintain good standing with tax authorities

How TME Services Can Support Your Business

This initiative aligns with the UAE’s vision to maintain its position as a leading business hub. For companies considering expansion into Dubai or the Middle East, this period presents an optimal opportunity to ensure their tax compliance is in order.

Our comprehensive services are designed to support you every step of your business journey in the UAE:

Company Formation: We guide you through all aspects of setting up your company, whether in a free zone or on the mainland, ensuring you choose the best option for your business.
Visa and Emirates ID Services: We streamline the process of securing visas and Emirates IDs for you and your employees, allowing you to focus on your business operations.
Accounting: Our team ensures your business stays compliant with local financial regulations, which is crucial for maintaining good standing in Dubai’s business community.
Tax: We help manage Dubai’s tax environment, ensuring your business remains compliant while optimizing your tax position.
Business Consulting: Leveraging our deep understanding of Dubai’s market, we provide valuable insights and help you develop effective strategies to succeed.

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