FTA Advises Natural Persons for Corporate Tax Registration by 31st March 2025, to Prevent Penalties
All individuals who are liable to corporate tax have been reminded by the Federal Tax Authority (FTA) of the United Arab Emirates (UAE) to submit their applications for tax registration by 31st March 2025. Failure to comply will result in fines of AED 10,000 and other administrative penalties.
This declaration is a part of the FTA’s continuous efforts to guarantee adherence to the UAE’s corporate tax laws, which were put in place to strengthen the nation’s tax structure and bring it into line with worldwide standards.
Who Must File a Corporate Tax Registration?
Under the FTA, any individual, regardless of age or residency, is classified as a natural person. However, corporate tax is applicable only to individuals engaged in business or business-related activities within the UAE, which includes sole proprietorships and individual partners in unincorporated partnerships. Furthermore, individuals deemed Taxable persons are required to register for Corporate Tax if their total annual revenue exceeds AED 1 million.
Deadlines and Thresholds
As determined by the FTA, the year 2024 marks the first possible Tax Period for natural persons engaging in business operations.
Registration Deadline for corporate tax: 31st March 2025
Tax Return Filing: Following registration, the Corporate Tax Return must be filed by 30th September 2025.
Registration must be completed by 31st March 2025 if your business’s revenue reaches AED 1 million by 31st July 2024. The Corporate Tax Return must be filed by 30th September 2025.
Penalties for Failure to Comply
Failure to register for corporate tax by the deadline will incur an administrative penalty of AED 10,000. It’s critical to comprehend your responsibilities and take timely action to prevent penalties.
How to File a Corporate Tax Registration
Through the EmaraTax platform, which offers round-the-clock digital tax services, the FTA has made the registration procedure easier. To begin, follow these steps:
Current Users: You can complete the Corporate Tax registration application by logging into your EmaraTax account if you are already registered for VAT or Excise Tax.
New Users: Create an account on the EmaraTax platform by going to https://eservices.tax.gov.ae/ and providing your phone number and email address. After creating your profile, choose Corporate Tax registration and adhere to the detailed steps.
To help users with the procedure, the FTA has also released a Corporate Tax Registration Taxpayer User Manual.
Registering at Tasheel Centers
The FTA has made it feasible for people who would rather get help in person to apply for corporate tax registration at Tasheel Centers located throughout the United Arab Emirates.
Keep Up to Date and Compliant
All relevant individuals are encouraged by the FTA to become acquainted with the Corporate Tax laws, implementing decisions, and recommendations that are posted on the FTA website. You can avoid penalties and fulfill your tax duties by staying informed about news and regulations of UAE.
For expert guidance and efficient support, feel free to contact Esenyel Consultancy LLC.
