UAE Corporate Tax : Natural Persons Must Register Before March 2025 to Avoid AED 10,000 Penalty

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The UAE’s Federal Tax Authority (FTA) has issued a critical reminder for natural persons conducting business in the UAE: Register for Corporate Tax by 31 March 2025 or face an AED 10,000 administrative penalty.

With the introduction of Corporate Tax in the UAE, individuals engaging in business activities must understand their obligations. If your annual turnover exceeded AED 1 million in 2024, registration is mandatory, and failure to comply could result in penalties.

Who Needs to Register for Corporate Tax?

The FTA defines a "natural person" as a living individual of any age, whether residing in the UAE or elsewhere. However, not all individuals are subject to Corporate Tax—only those who conduct a Business or Business Activity in the UAE, including:

• Sole proprietors and sole establishments
• Individual partners in unincorporated partnerships

If your total turnover exceeds AED 1 million in a given calendar year, you are considered a Taxable Person and must register for Corporate Tax by 31 March of the following year.

Example of Registration Requirement

If a natural person’s business revenue exceeded AED 1 million by 31 July 2024, they must:

• Register for Corporate Tax by 31 March 2025
• Submit a Corporate Tax Return by 30 September 2025

Missing the registration deadline will result in an AED 10,000 penalty.

How to Register for Corporate Tax?

The FTA has simplified the registration process to ensure compliance:

• EmaraTax Platform (eservices.tax.gov.ae) – A digital tax service available 24/7, guiding taxpayers through a step-by-step registration process.
• Tas’heel Centres – Multiple government service centres across the UAE offer registration support.
• Existing VAT/Excise Tax Accounts – If already registered for VAT or Excise Tax, taxpayers can use their EmaraTax account for Corporate Tax registration and obtain a Tax Registration Number.

FTA Resources for Taxpayers

The FTA has issued several guides to help individuals understand their Corporate Tax obligations, including:

• Corporate Tax Registration - Taxpayer User Manual
• CTGRNP1 Guide on Natural Persons’ Registration

The FTA encourages all taxable individuals to review the Corporate Tax legislation, implementing decisions, public clarifications, and awareness publications to ensure full compliance.

Act Now to Avoid Penalties

Corporate Tax compliance is mandatory, and the deadline for natural persons is 31 March 2025. Register early to avoid penalties and ensure your business remains compliant under UAE tax laws.

For more details, visit the FTA website at tax.gov.ae.

Disclaimer: Content posted is for informational and knowledge sharing purposes only, and is not intended to be a substitute for professional advice related to tax, finance or accounting. The view/interpretation of the publisher is based on the available Law, guidelines and information. Each reader should take due professional care before you act after reading the contents of that article/post. No warranty whatsoever is made that any of the articles are accurate and is not intended to provide, and should not be relied on for tax or accounting advice