The Federal Tax Authority (FTA) has issued a reminder to individuals conducting business activities in the United Arab Emirates (UAE) to complete their Corporate Tax registration by March 31, 2025. This requirement applies to those whose business turnover exceeded AED 1 million during the 2024 calendar year or in subsequent years. Failure to meet this deadline will result in an administrative penalty of AED 10,000.
Who Should Register?
According to the FTA, a ‘natural person’ refers to any living individual, regardless of residency status, who operates a business or is part of an unincorporated partnership within the UAE. For instance, if an individual’s business turnover surpassed AED 1 million by July 31, 2024, they are obligated to register for Corporate Tax by March 31, 2025, and subsequently file their tax return by September 30, 2025.
Registration Process Corporate Tax
The FTA has streamlined the registration process through the EmaraTax platform, which is accessible online 24/7. Individuals already registered for Value Added Tax (VAT) or Excise Tax can log into their existing accounts to complete the Corporate Tax registration. New users can create an account using their email address and phone number, then follow the guided steps to register for Corporate Tax. Additionally, the FTA has facilitated registration through various Tas’heel Centres across the UAE to accommodate those who prefer in-person assistance.
Resources and Support for Taxpayers
To assist taxpayers, the FTA has published the “Corporate Tax Registration – Taxpayer User Manual” and other informative guides on their official website. These resources provide detailed instructions on the registration process and outline the tax obligations of individuals.
Corporate Tax Compliance in the UAE
The implementation of the Corporate Tax system is a strategic move by the UAE to enhance economic stability by promoting fairness and efficiency within the tax framework. The FTA strongly encourages all eligible individuals to stay informed about the prevailing tax laws and fulfill their obligations promptly to avoid incurring penalties.
FTA Extends Deadline for Tax Record Updates
In a recent development, the FTA announced a grace period for taxpayers who have not updated their tax records, allowing them to do so by March 31, 2025, without facing administrative penalties. This initiative aims to support businesses in meeting their tax obligations efficiently.
