UAE: FTA Urges Registration For Corporate Tax Before March 2025 Deadline

The Federal Tax Authority (FTA) in the UAE has reiterated the importance of natural persons involved in business activities to register for Corporate Tax by March 2025. Missing this deadline will result in non-compliance with tax laws and lead to administrative penalties. The FTA's announcement highlights the necessity for timely registration to avoid these consequences.

If a natural person conducts business in the UAE during 2024 or later, and their turnover surpasses AED1 million, they must register for Corporate Tax by March 31 of the following year. This requirement ensures adherence to Corporate Tax obligations. The FTA defines a 'natural person' as any individual, regardless of age or residency, engaged in business activities within the UAE.

A natural person is liable for corporate tax if they are involved in business activities such as sole proprietorships or joint ventures in the UAE. The first tax period applicable for these individuals begins in 2024. If their revenue exceeds AED1 million by July 31, 2024, they must register for Corporate Tax by March 31, 2025.

After registration, these individuals need to file a Corporate Tax Return by September 30, 2025. Failure to register by the deadline results in an Administrative Penalty of AED10,000. This penalty underscores the importance of meeting tax registration requirements promptly.

The FTA clarified that those already registered for VAT or Excise Tax can access their accounts via EmiraTax, a digital service available around the clock. Once a corporate tax registration application is completed and approved, a unique registration number is issued for corporate tax purposes.

EmiraTax facilitates seamless access to tax services, ensuring businesses can manage their tax obligations efficiently. This digital platform plays a crucial role in simplifying the registration process and maintaining compliance with UAE tax regulations.

The FTA's emphasis on timely registration reflects its commitment to enforcing tax laws effectively. By adhering to these guidelines, natural persons conducting business activities can avoid penalties and ensure compliance with corporate tax requirements.

With inputs from WAM