The UAE’s Federal Tax Authority (FTA) reminds all natural persons who are subject to Corporate Tax to submit their Tax Registration applications for Corporate Tax no later than 31 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 insofar as 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.
The FTA announced in a press release today, 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 exceeded AED 1 million, they are a Taxable Person, who 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, 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 AED 1 million by 31 July 2024, they are required to submit an application to register for Corporate Tax no later than the 31March 2025, and, consequently, 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.
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.
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 on how to register through EmaraTax.
As part of the FTA’s efforts to simplify and streamline tax processes for taxpayers, those who are 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 at https://eservices.tax.gov.ae/ 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 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.
