FTA urges Natural Persons to register for Corporate Tax before end of March 2025
The Federal Tax Authority (FTA) of the United Arab Emirates advises all natural persons who require corporate tax to submit their tax registration applications by March 31, 2025, at the latest, in order to avoid administrative penalties.
A guide on the Registration of Natural Persons (CTGRNP1 - Files/Guide had been published by the FTA to raise understanding on the registration of natural persons for corporate tax.
A natural person is only subject to corporation tax if they operate a business or engage in business-related activities within the United Arab Emirates. This comprises individual businesses operating in the United Arab Emirates as well as sole establishments and partners in unincorporated partnerships.
According to a press release issued by the FTA on Tuesday (January 28, 2025), a natural person is considered a Taxable Person and is required to register for Corporate Tax by March 31, 2025, if they conduct business or business activity in the United Arab Emirates during or following the calendar year 2024 and their total turnover in that year exceeds AED 1 million.
As an example, if a natural person operates a business or business activity in the United Arab Emirates during the 2024 calendar year and their revenue by July 31, 2024, exceeds Dhs1 million, they must apply to register for corporate tax by March 31, 2025, and then file a corporate tax return by September 30, 2025.
A Dhs 10,000 administrative penalty will be imposed on a natural person who is required to register for corporate tax if they fail to submit a Tax Registration application by the specified deadline.
If you need any professional advise/ guidance regarding UAE CT and VAT, you may please contact our Tax Department:
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