This is to bring to your kind attention that the Federal Tax Authority (FTA) has opened the registration for Corporate Tax for all the Limited Liability Companies (L.L.C.). The L.L.C. will be liable for Corporate Tax from 1 June 2023, depending on the Accounting Period followed by the L.L.C. For e.g., if the L.L.C. follows the accounting period January to December then the first taxable year for the L.L.C. would be 1 January 2024 to 31 December 2024. The Corporate Tax return for such a period would have to be filed between 1 January 2025 to 30 September 2025.
Also please note that the FTA has not fixed any deadline for registration of L.L.C. for corporate Tax. Further the registration is open only for L.L.C. companies only. Sole Establishment, Partnership, Freezone companies and other forms of enterprises will be open for registration at a future date as announced by the FTA.
Further to ease the burden of Tax on small enterprises and L.L.C. companies the FTA has exempted the small business from payment of taxes for a period till 31 December 2026. Small enterprises have been defined by FTA as a Company having a turnover of less than 3 million for all these years. If in any year for the period 2024 to 2026 the turnover exceeds 3 million, then the exemption will be withdrawn for that year and the subsequent years.
We would be very glad to assist you in registering your company for corporate tax in the FTA regime. If you need any assistance, please feel free to contact us.