The Federal Tax Authority (FTA) of the UAE encourages all natural persons liable for corporate tax to submit their applications by 31 March 2025. This is to avoid administrative penalties.

To increase knowledge on the registration of natural persons for corporate tax, the FTA previously released a handbook on the Registration of Natural Persons (CTGRNP1).

How Does the FTA Define a Natural Person?

According to the FTA, a “natural person” is any living individual, regardless of age, who resides in the UAE or somewhere else. A natural person would only be liable for corporate tax if they were conducting business in the United Arab Emirates.

This comprises individual companies operating in the UAE, sole proprietorships, and partners in unincorporated partnerships. According to the guidance, the 2024 Gregorian calendar year is the first possible Tax Period for a natural person engaging in business or business-related activities.

What Are the Requirements for Taxable Persons?

According to the FTA, a taxable person in the UAE is a natural person conducting business or business activity with a total turnover exceeding AED 1 million in a given year. This applies to those in the UAE during the calendar year 2024 or later.

They must register for corporate tax by March 31 of the year after the year in which their total turnover surpasses AED 1 million and fulfill all corporate tax obligations.

Application Deadlines for UAE Corporate Tax Registration

A natural person operating a business in the UAE during the calendar year must register for corporate tax by March if their revenue exceeds AED 1 million by July. They must apply to register for corporate tax by March 31, 2025, and then file a corporate tax return by September 30, 2025.

Consequences of Failing

AED 10,000 will be charged as an administrative penalty to a natural person who is required to register for corporate tax if they fail to submit a Tax Registration application by the relevant deadline.

The Corporate Tax Act, implementing decisions, guidelines, public explanations, and relevant awareness publications are all available on the FTA website. And it is recommended that every relevant party become familiar with them.

Where to Register for UAE Corporate Tax?

Corporate tax registration is possible via the Emara Tax platform, which offers 24/7 digital tax services and a step-by-step, comprehensive explanation of the tax registration process. The Corporate Tax Registration—Taxpayer User Manual, which was released by the FTA, provides a thorough breakdown of the EmaraTax registration process.

The FTA aims to simplify tax procedures. Individuals registered for VAT or Excise Tax can now access their accounts on EmaraTax to complete their Corporate Tax registration. After being accepted, they will be given a Tax Registration Number for corporate taxation.

Steps for New Users

The EmaraTax platform is available to new users at https://eservices.tax.gov.ae/.  They can register with a phone number and email address to create an account. The Taxable Person can choose the Corporate Tax registration option and continue filling out the Corporate Tax Registration application after creating their user profile.

Applications for corporate tax registration can now be submitted through a number of government service centers (Tas’heel Centers) located around the UAE thanks to the FTA.

About Federal Tax Authority

The Federal Tax Authority was created by Federal Decree-Law No. (13) of 2016. This was done to help diversify the UAE’s economy and boost non-oil revenues by managing and collecting taxes using international best practices and standards. Additionally, the authority will provide all necessary assistance to ensure that taxpayers adhere to tax laws and procedures.

The FTA has been dedicated to creating a complete and beneficial electronic tax system since its founding in 2017. This system aims to make the UAE one of the first nations to adopt a fully electronic tax system that promotes voluntary compliance with simple processes based on high standards of accuracy and transparency.

This includes registration, filing tax returns, and paying taxes due via the authority’s website, www.tax.gov.ae. 

Common Misconceptions About Corporate Tax for Individuals

• Only Companies Need to Register

Many people believe that only registered corporations are subject to corporate tax. However, compliance is also required for natural people who engage in business activities over the revenue threshold.

• Freelancers and Small Businesses Are Exempt

Those who make more than AED 1 million a year are required to register and pay taxes, even though the corporate tax system is designed to assist small firms.

• The Process is Complex and Time-Consuming

Through an online portal, the FTA has simplified the registration procedure, making it easy and quick for people to comply without needless delays.

• Registration Means Immediate Tax Payments

Immediate tax liability is not always associated with company tax registration. 9% corporate tax is only applied to taxable profits over AED 375,000.

To Sum Up

With the March 31, 2025, deadline approaching, the FTA’s call for natural persons to register for corporate tax is a significant step toward ensuring compliance and financial transparency in the UAE.

Freelancers, self-employed professionals, and business owners must assess their eligibility and complete the registration process to avoid penalties and legal complications. 

Individuals contribute to national economic stability by adhering to the corporate tax framework. This framework also provides a structured regulatory environment for businesses to operate within.