The Federal Tax Authority (FTA) has recently issued a Corporate Tax (CT) Public Clarification on the First Tax Period of a juridical person. This clarification intends to clarify the First Tax Period (FTP) under Federal Decree Law No. 47 of 2022 on Taxation of Corporations and Business (‘UAE CT Law’) for the below categories of Taxable Persons (along with illustrative examples).
- Juridical person who is a resident taxable person and subject to Commercial
- Companies Law (Companies Law). FTP for Taxable Person formed under Free Zone regulations shall be determined in a similar manner, subject to the requirements under FZ regulations being nonetheless the same as Companies Law.
- A non-resident person having a Permanent Establishment (PE) in the UAE.
- Overseas entities whose place of effective management (PoEM) is in the UAE.
- The Public Clarification also addresses the timelines for Tax Deregistration in case of cessation of business/business activities before or during the FTP.
