FTA Urges Natural Persons to Register for Corporate Tax by March 2025 to Avoid Penalties

Written By Akshaya Ashok, Reviewed By Retheesh R S

Published on 12/02/2025

The UAE’s Federal Tax Authority (FTA) has issued a reminder to all natural persons subject to Corporate Tax to submit their Tax Registration applications no later than 31 March 2025. Failure to comply will result in administrative penalties, including a fine of AED 10,000.

This announcement comes as part of the FTA’s ongoing efforts to ensure compliance with the UAE’s Corporate Tax regulations, which were introduced to strengthen the country’s tax framework and align with global standards.

Who Needs to Register for Corporate Tax?

According to the FTA, a natural person refers to any living human being, regardless of age or residency status. However, only those conducting a Business or Business Activity in the UAE are subject to Corporate Tax. This includes:

• Sole establishments
• Individual partners in unincorporated partnerships

The FTA has clarified that the first potential Tax Period for natural persons conducting business activities is the 2024 Gregorian calendar year.

Deadlines and Thresholds

Natural persons whose total turnover exceeds AED 1 million in a calendar year are considered Taxable Persons and must register for Corporate Tax. Here’s what you need to know:

• Registration Deadline: If your turnover exceeds AED 1 million in 2024, you must register for Corporate Tax by 31 March 2025.
• Tax Return Filing: After registration, you must file your Corporate Tax Return by 30 September 2025.

For example, if your business revenue exceeds AED 1 million by 31 July 2024, you must register by 31 March 2025 and file your return by 30 September 2025.

Penalties for Non-Compliance

Failure to register for Corporate Tax by the deadline will result in an administrative penalty of AED 10,000. To avoid penalties, it’s important to understand your obligations and act promptly.

How to Register for Corporate Tax

The FTA has facilitated the registration process through the EmaraTax platform, which provides 24/7 digital tax services. Here’s how to get started:

• Existing Users: If you’re already registered for VAT or Excise Tax, you can log in to your EmaraTax account and complete the Corporate Tax registration application.
• New Users: Visit the EmaraTax platform at https://eservices.tax.gov.ae/ and create an account using your email ID and phone number. Once your profile is set up, select the Corporate Tax registration option and follow the step-by-step instructions.

Also, the FTA has published a Corporate Tax Registration Taxpayer User Manual to guide users through the process.

Registration Through Tas’heel Centres

For those who prefer in-person assistance, the FTA has made it possible to submit Corporate Tax registration applications at Tas’heel Centres across the UAE.

Stay Informed and Compliant

The FTA encourages all relevant individuals to familiarize themselves with the Corporate Tax legislation, implementing decisions, and guidelines available on the FTA website. Staying informed will help you meet your tax obligations and avoid penalties.

Why Reyson Badger?

At Reyson Badger, we specialize in providing expert guidance on tax compliance and financial advisory services. Whether you’re a natural person or a business entity, our team can help you navigate the complexities of Corporate Tax registration and ensure timely compliance. Don’t wait until the last minute to contact Reyson Badger today to secure your Corporate Tax registration and avoid unnecessary 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.