The UAE Federal Tax Authority (FTA) has announced an extension of the corporate tax filing deadline to 31 December 2024, giving relief to businesses that completed short first tax periods ending on or before 29 February 2024.
Who Qualifies for the Extended Deadline
The UAE corporate tax filing deadline extension applies to taxable persons incorporated, established, or recognised under UAE applicable legislation on or after 1 June 2023, whose tax period ended on or before 29 February 2024.
These businesses — typically those whose first tax period was shorter than the standard 12 months — now have until 31 December 2024 to both file their Corporate Tax Returns and settle any Corporate Tax Payable.
FTA Decision No. 7 of 2024
The extension was issued under Decision No. 7 of 2024, enacted pursuant to Federal Decree-Law No. 47 of 2022 On the Taxation of Corporations and Businesses. The FTA announced the decision on 25 September 2024.
Without the extension, original filing deadlines for affected tax periods ranged from 30 September 2024 to 30 November 2024 depending on the specific tax period end date.
FTA Director General's Statement
FTA Director General His Excellency Khalid Ali Al Bustani stressed the Authority's commitment to supporting taxpayers by extending filing and payment deadlines where appropriate. The extension is designed to reduce compliance costs and encourage timely, accurate tax remittance.
"This extension is intended to minimize compliance costs and increase timely and accurate tax remittance," Al Bustani noted.
What Businesses Need to Do
Companies that fall under the extended deadline must:
- File their Corporate Tax Return by 31 December 2024 - Settle all Corporate Tax Payable by the same date - Ensure their tax period ended on or before 29 February 2024 - Confirm they were incorporated in the UAE on or after 1 June 2023
For businesses with tax periods ending after 29 February 2024, the standard nine-month filing and payment rule remains unchanged.
The FTA has urged all taxable persons to use the extension window to ensure full compliance and avoid potential penalties.
