UAE urges natural persons to register for Corporate Tax before March 31

    The Federal Tax Authority (FTA) has urged all natural persons who are subject to Corporate Tax to submit their Tax Registration applications for Corporate Tax no later than 31st March 2025 to avoid Administrative Penalties.

The FTA previously issued a guide on the Registration of Natural Persons (CTGRNP1) to raise awareness about the registration of natural persons for Corporate Tax. 

The FTA indicated that a ‘natural person’ means a living human being of any age, whether resident in the UAE or elsewhere. A natural person would only be subject to corporate tax if he/she conducts a business or business activity in the UAE. This includes sole establishments and individual partners in Unincorporated Partnerships that conduct a Business or Business Activity in the UAE. 

The guide explains that the first potential Tax Period for a natural person conducting a business or business activity is the 2024 Gregorian calendar year. 

In a press release on Tuesday, the FTA announced that if a natural person is conducting a business or business activity in the UAE during the calendar year 2024 or subsequent years, and their total turnover in that calendar year exceeds AED1 million, they are a Taxable Person, who must register for Corporate Tax no later than 31st March of the calendar year following the year in which their total turnover exceeded the Dhs1 million threshold, and comply with all their Corporate Tax obligations.

For example, if a natural person conducts a business or business activity in the UAE during the 2024 calendar year, and their revenue exceeded Dhs1 million by 31st July 2024, they are required to submit an application to register for Corporate Tax no later than the 31st March 2025, and, consequently, submit a Corporate Tax Return no later than 30th September 2025. 

If a natural person who must register for Corporate Tax does not submit a Tax Registration application by the applicable deadline, they will be subject to an Administrative Penalty of Dhs10,000. 

All relevant persons are encouraged to familiarise themselves with the Corporate Tax legislation, implementing decisions, guides, public clarifications and relevant awareness publications on the FTA website. 

Registration for Corporate Tax is available through the EmaraTax platform, which provides digital tax services around the clock and where the Tax Registration procedure is explained in an easy and clear step-by-step manner. The FTA has also published the Corporate Tax Registration - Taxpayer User Manual, which includes a detailed explanation of how to register through EmaraTax. 

Those registered for VAT or Excise Tax can access their accounts on EmaraTax to complete their Corporate Tax registration application. Once approved, they will obtain a Tax Registration Number for Corporate Tax purposes.

New users can access the EmaraTax platform and create an account by registering with an email ID and phone number. Once the user profile is created, the Taxable Person can select the Corporate Tax registration option and complete the Corporate Tax Registration application.

The FTA has also made it possible to submit Corporate Tax registration applications through multiple government service centres (Tas’heel Centres) across the UAE.