The Federal Tax Authority (FTA) has issued Public Clarification CTP004 to announce the postponement of the corporate tax filing deadline for certain tax periods. Here’s why this clarification was crucial and what it includes:

Why the Postponement?

1. Newly Incorporated Businesses: Companies incorporated after June 1, 2023, needed more time to adjust to their shorter tax periods.

2. Compliance Challenges: The postponement ensures that businesses have sufficient time to align with the new tax laws, avoiding non-compliance issues and penalties.

What’s the New Deadline?

According to FTA Decision No. 7 of 2024, businesses:
Incorporated on or after June 1, 2023, and
With tax periods ending on or before February 29, 2024,
must now file their tax returns and settle their corporate tax payable by December 31, 2024.

Who Does This Affect?

The extension specifically applies to businesses with shorter fiscal periods ending:
A] December 31, 2023,
B] January 31, 2024, and
C] February 29, 2024.
Note: Businesses with tax periods ending after February 29, 2024, are not covered by this decision.

Penalties Delayed

Administrative penalties tied to the original deadlines will now be enforced starting January 1, 2025, allowing businesses more time to comply.

Key Takeaway:

If your business was incorporated recently and falls within the affected periods, your new corporate tax filing and payment deadline is December 31, 2024!