In a crucial reminder to individuals conducting business activities, the Federal Tax Authority (FTA) is urging all natural persons in the UAE to register for Corporate Tax by March 31, 2025. Failing to meet this deadline could result in administrative penalties. The FTA has outlined the guidelines in their document on the Registration of Natural Persons for Corporate Tax (CTGRNP1), which is aimed at enhancing awareness of tax obligations.
According to the FTA, “natural persons” refers to individuals, regardless of their age or residency status, who engage in business operations in the UAE. This encompasses proprietors of sole establishments and individual partners in unincorporated partnerships. Natural persons will begin to be taxed based on their business revenues generated during the 2024 fiscal year.
Specifically, those with an annual turnover exceeding AED 1 million during any calendar year must complete registration no later than the following March 31. They will also need to meet all Corporate Tax obligations accordingly. For example, if a natural person earns more than AED 1 million in revenue during 2024, they must register for Corporate Tax by March 31, 2025, and submit their Corporate Tax Return by September 30, 2025.
To avoid administrative penalties amounting to AED 10,000 for late registration, it is critical that affected individuals take immediate action.
Simplified Registration Process
The FTA offers a user-friendly registration process via the EmaraTax platform, which allows users to manage their tax obligations digitally at any time. Detailed instructions for registration can be found in the Corporate Tax Registration – Taxpayer User Manual available online.
Natural persons who are already registered for VAT or Excise Tax will find that they can use their existing EmaraTax accounts to complete their Corporate Tax application seamlessly. Upon approval, they will receive a Tax Registration Number specific to Corporate Tax.
Getting Started with EmaraTax
New users interested in registering for Corporate Tax can create an account on the EmaraTax platform by using their email address and phone number. Once registered, individuals can select the Corporate Tax option and move forward with their application for tax registration.
Additionally, tax registration applications can also be submitted through specialized government service centers, known as Tas’heel Centres, located throughout the UAE, offering more options for applicants to ensure compliance.
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