Here is bad news for the individuals who do not register corporate tax on time in UAE. The Finance Ministry now announced that a new fine of Dh10,000 will be charged to those people who are late for corporate tax registration.
The major aim of taking this step is to encourage people to follow the tax rules and register on time. The same amount will also be charged on late registration of other taxes.
Cabinet Decision No. 10 of 2024 modifies the tax offense penalties. The Federal Tax Authority abides by Cabinet Decision No. 75 of 2023, which established these sanctions. Commencing on March 1, 2024, is the new fine.
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Beginning on June 1, 2023, corporations are subject to a flat nine percent tax rate for profits over Dh375,000 under the corporate tax code.
Guidance on who must pay corporation tax was released in December 2023. Checking out this information and other resources on their website is advised, according to the Federal Tax Authority.
To assist small enterprises with taxes, the government also provides Small Business Relief (SBR). Residents who have a gross income of up to Dh3 million for the tax year that ends on or before December 31, 2026, are eligible for this relief.
