[World Tax News] UAE Urges Persons With Licenses Issued in August-September to Obtain Corporate Tax Registration Till 31 October and More

World Tax News provides a weekly snippet of tax news from around the globe. Here is a glimpse of the tax happening in the world this week.

1. UAE urges Persons with licenses issued in August-September to obtain Corporate Tax Registration till 31 October

The Federal Tax Authority (FTA) has called on Resident Juridical Persons with licenses issued in August or September, regardless of the year of issuance, to submit their Corporate Tax registration applications by 31 October 2024 to avoid administrative penalties.

In a press release, the FTA urged Taxable Persons to follow the timelines outlined in FTA Decision No. 3 of 2024, which sets deadlines for Corporate Tax registration. The decision specifies the deadlines for different categories of Taxable Persons to complete their registration, with administrative penalties imposed on those who fail to comply within the stipulated timeframes.

The FTA further clarified that the decision applies to both Juridical and Natural Persons, whether Resident or Non-Resident. Resident Juridical Persons, incorporated or established before 1 March 2024, must submit their Corporate Tax registration based on the month of their license issuance, irrespective of the year.

For Taxable Persons holding multiple licenses as of 1 March 2024, the deadline is determined by the earliest issued license. Even if a Taxable Person’s license expired on 1st March 2024, the registration deadline is still based on the original month of issuance.

Source: Release by the Federal Tax Authority
FTA Decision No. 3 of 2024

2. EU General Court Confirms Ban on Offering Advisory Services to Russia

On October 2, 2024, the General Court of the European Union delivered its rulings in three cases, affirming Council Decision (CFSP) 2022/1909 of October 6, 2022. This decision prohibited providing various services to the Russian government and Russian entities, including the direct or indirect offering of accounting, auditing, bookkeeping, and tax consulting services. A press release has been issued for these rulings.

The General Court reaffirms the fundamental right of all individuals to seek legal counsel to conduct, prepare for, or anticipate judicial proceedings and concludes that the ban in question does not undermine that right.

In 2022, in response to Russia’s intensification of aggression against Ukraine, the Council of the European Union adopted a series of restrictive measures aimed at putting pressure on Russia to end its war of aggression. The measures taken include a prohibition on providing legal advisory services.

Subject to certain exceptions and exemptions, those acts prohibit any person in a position to provide legal advisory services (practising, in particular, in the territory of the European Union) from providing such services to the Russian Government or legal persons, entities or bodies established in Russia. The prohibition is designed to further increase the pressure on Russia.

A number of Belgian Bar associations and lawyers brought proceedings before the General Court of the European Union seeking annulment of that prohibition. Lately, the General Court dismissed the three actions.

It is clarified in that regard that the general prohibition on providing legal advisory services to the Russian Government or to legal persons, entities, or bodies established in Russia does not concern legal advisory services provided in connection with judicial, administrative, or arbitral proceedings. The prohibition thus applies only to legal advice that is not linked to judicial proceedings.

The General Court adds that legal advice provided to natural persons, in particular, does not fall within the scope of the prohibition. Whilst recalling the importance of the independence of lawyers to guarantee the right of persons subject to the law to an effective remedy, in contexts where there is a link with judicial proceedings, the General Court holds that the prohibition at issue does not apply to legal advisory services provided by a lawyer which have a link with judicial proceedings, and therefore does not entail any interference with the independence of lawyers.

The General Court further notes that the essential role of lawyers in upholding and defending the rule of law may be subject to limitations. Such restrictions are permissible if they are justified by objectives of general interest pursued by the European Union, as long as they do not represent a disproportionate or intolerable interference that undermines the core responsibilities of lawyers in a state governed by the rule of law.

According to the General Court, the prohibition at issue, as delimited by the exception and exemption provisions, does pursue objectives of general interest without impairing the very essence of the fundamental role of lawyers in a democratic society.

Source: Press Release No. 155/24, dated 02-10-2024

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