Deadline for individuals generating Dh1m plus from business activities in the UAE - UAE Corporate Tax

UAE Tax authority sets deadline for unincorporated partnerships and sole businesses in UAE.

Those running one-person businesses should register for corporation tax by March 31, 2025, according to a reminder from the Federal Tax Authority.

In addition, the rule applies to partners of unincorporated partnerships.

In such cases, the calendar year is the first potential tax period.

Persons who earn over Dh1 million in 2024 are considered 'taxable persons'.

The individuals must comply with all corporate tax obligations if they breach the Dh1 million limit in subsequent years.

As defined in the FTA, a 'natural person' is someone who resides in the UAE or elsewhere, but engages in a business or business activity.

If the person generates revenue over Dh1 million by 31 July 2024, they must register for corporate tax by March 31, 2025. By September 30, 2025, the corporate tax return must be submitted.

Be aware of the penalties

The penalty for not registering by the deadline is Dh10,000.

It is recommended that all relevant persons familiarise themselves with the Corporate Tax legislation, implementing decisions, guides, public clarifications, and relevant awareness publications available on the FTA website.

EmaraTax offers registration through its platform. Detailed instructions on how to register through EmaraTax are included in the FTA's 'Corporate Tax Registration - Taxpayer User Manual'.

By registering an email ID and phone number, new users can access the EmaraTax platform at eservices.tax.gov.ae. The individual can then complete the corporate tax registration process.

The latest update closes the loop on which entities and individuals doing business in the UAE are subject to compulsory corporate tax registration. The process will need to be accelerated for those who haven't yet begun. There is still a lot of preparation involved in tax registration, even though it might seem straightforward.

The more difficult part of the process occurs once they get to the point of actually registering. It is still possible for individuals to complete their submissions even if the FTA asked for more details.

At a minimum, that's enough to avoid Dh10,000 in administrative penalties.

Contact FTA Agent Suzy Kerton at Zyla Accountants for support with your Corporate Tax today. You can contact by email, phone or schedule a meeting here.