Corporate Tax Registration of Natural Persons in UAE: FTA's Latest Update & Key Deadlines

Written By Akshaya Ashok, Reviewed By Retheesh R S

Published on 13/03/2025

FTA urges Natural Persons to promptly register for Corporate Tax before the end of March 2025. The Federal Tax Authority (FTA) has announced that natural persons conducting business activities in the UAE with a total turnover exceeding AED 1 million in a calendar year must register for Corporate Tax. The deadline for registration is March 31, 2025, for the 2024 calendar year. A penalty of AED 10,000 will be imposed if you fail to register on time. Natural persons can register through the EmaraTax platform, which provides digital tax services around the clock.

What is Corporate Tax for Natural Persons?

Under UAE tax laws, a natural person is defined as an individual engaged in business or business activity within the UAE. Corporate tax applies to natural persons who derive income from such activities, treating them similarly to corporate entities. However, not all individuals are subject to corporate tax. For instance, salaried employees earning income from employment and passive investors receiving dividends or capital gains are exempt from corporate tax registration. The distinction lies in the nature of the income: active business income is taxable, while passive income typically falls outside the scope of corporate tax. This differentiation ensures that only those actively conducting business activities are required to comply with corporate tax regulations.

Who Must Register for Corporate Tax?

Natural persons must register for corporate tax if they conduct a business or business activity in the UAE and their turnover exceeds AED 1 million in a calendar year. This threshold ensures that smaller businesses and individuals with minimal income are not burdened by tax compliance. Key scenarios where a natural person becomes a taxable person include operating a sole establishment, engaging in freelance activities, or managing a family business. For example, a freelance consultant or a sole proprietor running a retail store with turnover exceeding AED 1 million would be required to register for corporate tax. Understanding these criteria is essential for natural persons to determine their tax obligations and avoid penalties for non-compliance.

Latest FTA Update on Corporate Tax Registration (March 2025 Deadline)

The Authority stated that if a natural person conducts a Business or Business Activity in the UAE during the 2024 calendar year and their Revenue exceeds AED 1 million by 31 July 2024, they are required to submit an application for Corporate Tax registration no later than 31 March 2025. Following this, they must file a Corporate Tax Return no later than 30 September 2025. Tax Registration applications that are not submitted by the specified deadline will be subject to an administrative penalty of AED 10,000.

Regarding the registration process, the FTA clarified that VAT or Excise Tax registrants can access their accounts directly through EmaraTax, the digital tax services platform that operates 24/7. Upon completing and obtaining approval for the corporate tax registration application, a corporate tax registration number will be issued.

Corporate Tax Registration Process for Natural Persons

How to Register?

• Visit the EmaraTax platform: https://www.emaratax.ae.
• Log In or Create an Account
• Select Corporate Tax Registration
• Provide Required Information
• Submit Supporting Documents
• Review and Submit
• Await Confirmation

By following these steps, natural persons can ensure compliance with the UAE’s Corporate Tax regulations.

Required Documents for Corporate Tax Registration

• Valid Emirates ID & Passport
• Trade License (if applicable)
• Bank Account Details
• VAT or Excise Tax Registration (if applicable)

Registration Approval Process

• FTA Reviews the Application: The Federal Tax Authority (FTA) will review the submitted application and documents.
• Issuance of Corporate Tax Registration Number (TRN): Upon approval, the FTA will issue a Tax Registration Number (TRN) for corporate tax purposes.

Filing & Compliance Obligations After Registration

• Corporate Tax Return Filing Deadline: The first Corporate Tax return must be filed by 30 September 2025.
• Maintain Financial Records: Financial records must be maintained for a minimum of 7 years.
• Transfer Pricing Documentation (if applicable): Businesses engaged in transactions with related parties must comply with transfer pricing rules and maintain proper documentation.
  

Penalties for Non-Compliance

Late Registration:

• A fine of AED 10,000 for failing to register by the 31 March 2025 deadline.

Incorrect Tax Filing:

• Late filing of tax returns.
• Incorrect or incomplete information in tax returns.
• Failure to maintain proper records or documentation.
• Additional penalties may apply for:
  • Late filing of tax returns.
  • Incorrect or incomplete information in tax returns.
  • Failure to maintain proper records or documentation.

How Reyson Badger Can Help? 

Reyson Badger is here to support you in the complexities of corporate tax registration and compliance in the UAE. Our team of experts can provide guidance on compliance and tax filing, ensuring that you meet all the necessary requirements. We also offer a hassle-free registration process via EmaraTax, making it easier for you to get started. Don't miss the deadline! Contact Reyson Badger today to ensure compliance and avoid any potential penalties.

Written By

Akshaya Ashok

Akshaya Ashok is a content writer specializing in creating content focused on accounting and auditing. With over two years of experience, she has developed expertise in crafting professional content for the financial sector.