The Federal Tax Authority underscores the significance of promptly registering for Company Tax to learn from the exemption from late registration penalties

As a part of its complete marketing campaign to lift consciousness of Company Tax amongst enterprise sectors, the Federal Tax Authority (FTA) held its third workshop of the yr in Ras Al Khaimah (RAK), devoted to familiarising contributors with the principles for figuring out taxable revenue underneath the Company Tax framework.

In a press assertion issued at present, the FTA highlighted that this workshop varieties a part of a collection of occasions, delivered each just about and in individual throughout all emirates of the nation, which can proceed all through 2025. The FTA famous that greater than 2,300 contributors have benefitted from the three consecutive workshops lately held in Dubai, Abu Dhabi, and RAK — together with representatives from enterprise sectors and stakeholders from each the private and non-private sectors concerned in taxation.

Through the workshop, the FTA emphasised the significance for entities topic to Company Tax – who haven’t but registered – to promptly submit their registration purposes as a way to profit from the esteemed Cupboard resolution concerning the initiative to exempt Company Tax payers and sure classes of exempt individuals, who’re required to register with the FTA, from administrative penalties ensuing from late submission of registration purposes past the legally prescribed deadline.

The FTA clarified that entities topic to Company Tax (or exempt individuals required to register) who’ve accomplished their tax registration to learn from the exemption initiative should submit their tax returns (or annual declarations) inside a interval not exceeding seven months from the top date of the registrant’s first tax interval, as a way to meet the exemption situations from penalties in accordance with the choice.

The FTA indicated that the distinctive situation for benefitting from the exemption – specifically, submitting the tax return (or annual declaration) inside a interval not exceeding seven months from the top date of the tax interval – applies solely to the primary tax interval of the entity topic to tax (or the exempt individual required to register), no matter whether or not the due date for the primary tax return (or first annual declaration) falls earlier than or after the efficient date of the brand new resolution.

The FTA affirmed its dedication to the continual enhancement of providers supplied to help and help enterprise sectors, according to its plans to determine a tax setting that encourages compliance. That is achieved via ongoing consciousness initiatives focusing on all classes of taxpayers, geared toward familiarising them with tax laws and procedures utilizing numerous strategies that guarantee the knowledge is obvious and simple to use.

The FTA famous that its representatives responded to contributors’ enquiries through the workshop in RAK, which was attended by roughly 440 stakeholders concerned within the implementation of Company Tax, together with a number of officers from related entities in each the private and non-private sectors.

Through the workshop, representatives of the FTA supplied a complete rationalization of the Company Tax Legislation and its associated choices, the necessities for compliance with the regulation, the registration procedures by way of the “EmaraTax” digital tax providers platform, the factors for figuring out taxable individuals, clarification of the relevant charges and tax intervals, in addition to the mechanism for implementing the provisions set out within the Company Tax Legislation.

The FTA defined that the workshop highlighted the principles for figuring out taxable revenue underneath Company Tax, together with how it’s recognized and calculated, the strategy for calculating the tax due, and the precise accounting requirements utilized for Company Tax functions. It additionally lined the preparation of monetary statements in accordance with the accounting requirements adopted by the taxable individual, the accrual-based accounting ideas whereby revenue is recognised when earned and bills when incurred, in addition to an outline of monetary property, monetary liabilities, and the therapy of fairness in accordance with their definitions underneath Worldwide Monetary Reporting Requirements (IFRS). Moreover, the relevant accounting strategies adopted by the taxable individual and the associated fee accounting methodology have been additionally addressed.