This legislative move is a strategic endeavor to align the nation’s tax system with global compliance efforts, notably the Organization for Economic Co-operation and Development’s (OECD) Base Erosion and Profit Shifting (BEPS) initiative, and the global consensus on a minimum corporate tax rate. The introduction of CT is aimed at diversifying the UAE’s economic base, moving away from its traditional reliance on oil revenues.
The decree stipulates a phased approach to CT registration, with deadlines determined by the month in which a business license was issued. The initial deadline for businesses holding licenses issued in January or February is set for May 31, 2024. The Federal Tax Authority (FTA) underscores the criticality of meeting these registration deadlines to avoid any penalties as prescribed by the Federal Authorities.
