The UAE’s Federal Tax Authority (FTA) has called on all natural persons who are subject to Corporate Tax to complete their tax registration by March 31, 2025, to avoid administrative penalties.
To enhance awareness, the FTA had previously released the Corporate Tax Registration Guide for Natural Persons (CTGRNP1), outlining the registration process and requirements for individuals conducting business activities in the UAE.
According to the FTA, a ‘natural person’ refers to any living human being, regardless of age or residency status. Individuals become liable for Corporate Tax if they engage in business activities within the UAE, including operating as sole establishments or as individual partners in Unincorporated Partnerships conducting business in the country.
The FTA has clarified that a natural person engaged in business or business activities in the UAE during 2024 or later years must register for Corporate Tax if their total turnover in a calendar year exceeds AED 1 million. The deadline for registration is March 31 of the following year after surpassing this threshold, and registered individuals must comply with all Corporate Tax obligations.
For instance, if an individual conducting business in the UAE exceeds AED 1 million in revenue by July 31, 2024, they must submit their Corporate Tax registration application no later than March 31, 2025. Additionally, they are required to file their Corporate Tax Return by September 30, 2025.
Failure to register for Corporate Tax by the specified deadline will result in an Administrative Penalty of AED 10,000. The FTA urges all affected individuals to review the relevant Corporate Tax legislation, guidelines, and awareness materials available on its official website to ensure compliance.
For further details, visit the FTA website and stay updated with the latest tax regulations and requirements.
