FTA urges natural persons to register for Corporate Tax by March

Sharjah 24 – WAM: The UAE’s Federal Tax Authority (FTA) has reaffirmed the requirement for all natural persons subject to Corporate Tax to submit their Tax Registration applications by the end of March 2025. Failure to do so will lead to violations of tax regulations and the imposition of administrative penalties.

Registration requirement for taxable persons

The FTA emphasized that any natural person conducting business or business activity in the UAE during the 2024 calendar year, or beyond, with a total turnover exceeding AED 1 million, is considered a Taxable Person. These individuals must register for Corporate Tax by March 31 of the following calendar year to meet their compliance obligations.

Definition of Natural Persons

A "natural person" refers to an individual, regardless of age or residency, engaged in business activities in the UAE, including sole proprietors and individual partners in joint ventures. The first possible tax period for these individuals begins in 2024.

Registration deadline and penalties

If a natural person’s revenue exceeds AED 1 million by July 31, 2024, they must apply for Corporate Tax registration by March 31, 2025. They must also submit their Corporate Tax Return by September 30, 2025. Failure to register by the deadline will result in a penalty of AED 10,000.

Registration process through EmiraTax

VAT or Excise Tax registrants can access their accounts through EmiraTax, the UAE’s 24-hour digital tax services platform. Once the registration application is completed and approved, a corporate tax registration number will be issued for tax purposes.