UAE’s FTA Reminds Businesses to Register for Corporate Tax by March 2025

The UAE’s Federal Tax Authority (FTA) has reiterated the importance of submitting Corporate Tax registration applications by the end of March 2025 for all individuals and businesses subject to the tax.

Failure to register within this timeframe will result in non-compliance with tax regulations and may lead to administrative penalties.

In a recent announcement, the FTA clarified that any natural person conducting a business or business activity in the UAE during the 2024 calendar year, or in subsequent years, must register for Corporate Tax if their total annual turnover exceeds AED 1 million. The registration deadline is 31 March of the year following the one in which this revenue threshold is met. Compliance with this requirement ensures adherence to Corporate Tax obligations.

Who Is Considered a Taxable Person?

According to the FTA, a ‘natural person’ refers to any individual, regardless of age or residency status, who is engaged in business activities in the UAE. This includes sole proprietors and individual partners in joint ventures operating within the country. The FTA has stated that the earliest applicable tax period for natural persons conducting business is the 2024 calendar year.

For instance, if a natural person’s business revenue surpasses AED 1 million by 31 July 2024, they must apply for Corporate Tax registration no later than 31 March 2025. Additionally, they are required to submit a Corporate Tax Return by 30 September 2025.

Failure to register for Corporate Tax by the specified deadline will result in an administrative penalty of AED 10,000.

Registration Process

The FTA has also provided guidance on the registration process. Those already registered for VAT or Excise Tax can access their accounts via EmaraTax, the digital tax services platform available 24/7. Once the Corporate Tax registration application is submitted and approved, a corporate tax registration number will be issued.

For businesses and individuals operating in the UAE, timely compliance with these requirements is essential to avoid penalties and ensure adherence to tax regulations.

Contact FTA Agency Zyla Accountants for support with your Corporate Tax registration and submission.