The Federal Tax Authority (FTA) in the UAE 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.
How does the FTA define a natural person? Â
The FTA clarified that a ‘natural person’ refers to a living human being of any age, whether a resident in the UAE or elsewhere. A natural person becomes liable for corporate tax only if he/she conducts a business or business activity in the UAE. This encompasses sole establishments and individual partners in Unincorporated Partnerships that engage in a Business or Business Activity in the UAE.
The guide details that the first potential Tax Period for a natural person involved in a business or business activity is the 2024 Gregorian calendar year.
What are the requirements for taxable persons?Â
In a press release issued on Tuesday, the FTA announced that if a natural person is engaging in a business or business activity in the UAE during the calendar year 2024 or in subsequent years, and their total turnover in that calendar year exceeds AED1 million, they qualify as a Taxable Person. This individual must register for Corporate Tax no later than 31st March of the calendar year following the year in which their total turnover surpassed the AED1 million threshold, and must comply with all Corporate Tax obligations.
Application deadlines for UAE Corporate Tax registration
For instance, if a natural person conducts a business or business activity in the UAE during the 2024 calendar year, and their revenue exceeds AED1 million by 31st July 2024, they are required to submit an application to register for Corporate Tax no later than 31st March 2025. Consequently, they must also file a Corporate Tax Return no later than 30th September 2025.
Read more: 450,000 businesses registered for corporate tax: UAE’s FTA
Consequences of failingÂ
If a natural person required to register for Corporate Tax fails to submit a Tax Registration application by the applicable deadline, they will face an Administrative Penalty of AED10,000.
All relevant individuals are encouraged to familiarize themselves with the Corporate Tax legislation, implementing decisions, guides, public clarifications, and pertinent awareness publications available on the FTA website.
Where to register for UAE Corporate Tax?Â
The registration process for Corporate Tax is accessible through the EmaraTax platform, which offers digital tax services around the clock. The Tax Registration procedure is outlined in a straightforward, step-by-step manner. The FTA has also published the Corporate Tax Registration – Taxpayer User Manual, providing a comprehensive explanation of how to register via EmaraTax.
Those already registered for VAT or Excise Tax can log into their accounts on EmaraTax to complete their Corporate Tax registration application. Once approved, they will receive a Tax Registration Number for Corporate Tax purposes.
Steps for new users
New users can access the EmaraTax platform and create an account by registering with an email ID and phone number. After setting up their user profile, the Taxable Person can select the Corporate Tax registration option and finalize the Corporate Tax Registration application.
Furthermore, the FTA has enabled the submission of Corporate Tax registration applications through various government service centres (Tas’heel Centres) located throughout the UAE.
