The UAE’s Federal Tax Authority (FTA) has today reaffirmed the need for all natural persons who are subject to Corporate Tax to submit their Tax Registration applications for Corporate Tax no later than the end March 2025. Failure to do so will mean violating tax regulations and incurring the associated administrative penalties.
In an announcement issued today, the FTA emphasised that if a natural person was 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 AED 1 million, they are a Taxable Person. As such, they must register for Corporate Tax no later than 31 March of the calendar year following the year in which their total Turnover exceeded the AED 1 million threshold. This will fulfil their compliance obligations with regard to their Corporate Tax.
The FTA defines a ‘natural person’ as an individual, living human being of any age, whether resident in the UAE or elsewhere. A natural person is subject to corporate tax to the extent to which he or she is engaged in a business or business activity in the UAE, including sole proprietorships and individual partners in joint ventures that are conducting a business or business activity in the UAE. The Authority indicated that the first possible tax period for a natural person conducting business or business activities is the calendar year 2024.
The Authority explained that if a natural person conducts a Business or Business Activity in the UAE during the 2024 calendar year, and their Revenue exceeds AED 1 million by 31 July 2024, they are required to submit an application to register for Corporate Tax no later than 31March 2025. Subsequently, they must then submit a Corporate Tax Return no later than 30 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 AED 10,000.
With regard to the registration process, the FTA clarified that a VAT or Excise Tax registrant can access their account directly through EmiraTax – the digital tax services provider that operates 24 hours a day. Following the completion and approval of the registration application for corporate tax, a registration number will be issued for corporate tax purposes.
New users can access the EmaraTax platform at https://eservices.tax.gov.ae/ and create an account by registering with an email ID and a phone number. Once the user profile is created, the Taxable Person can select the Corporate Tax registration option and proceed with completing 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.
All relevant persons are encouraged to familiarise themselves with the Corporate Tax legislation, implementing decisions, guides, public clarifications and relevant awareness publications available on the FTA website, including the manual on Registration of Natural Persons (CTGRNP1) Corporate Tax.
