UAE Corporate Tax Registration Deadline for Individuals

Introduction

The introduction of corporate tax in the UAE has prompted natural persons to register for compliance. This blog post sheds light on the deadlines surrounding the registration process for natural persons, ensuring clarity for affected individuals and entities.

What is Natural Persons Registration?

Natural persons registration refers to the process through which individual taxpayers, or natural persons, align themselves with the new corporate tax regulations in the United Arab Emirates. Under the current legislation, natural persons who derive income from business activities are required to register with the Federal Tax Authority (FTA). This ensures compliance with the tax laws and promotes structured economic activity within the nation.

Deadline for Registration

The deadline for natural persons registration under the UAE corporate tax framework is 31st March 2025 for the financial year ending 31 December 2024, critical for individuals seeking to avoid penalties and ensure their business operations can proceed without legal complications. The registration process must be completed within a specified timeframe following the introduction of the tax laws.

Failure to adhere to the registration deadline can lead to substantial penalties, including fines and interest on unpaid taxes. Therefore, it is crucial for all affected individuals to be proactive in meeting the necessary criteria.

Steps to Comply with the Registration Process

To ensure proper alignment with the UAE corporate tax laws, natural persons must undertake several key steps during the registration process. First, individuals should gather the necessary documentation, which typically includes proof of identity, business activity details, and any previous tax records if applicable. Next, registration can be completed online via the FTA’s official portal.

An application to register for Corporate Tax can be made on the EmaraTax portal. A natural person who is already registered for Value Added Tax or Excise Tax can use his/her existing login details. A natural person that has not previously registered with the FTA will be required to create new login credentials the first time he/she accesses the EmaraTax portal.

As such, they must register for Corporate Tax no later than March 31 of the calendar year following the year in which their total Turnover exceeded the AED1m ($272,000) threshold.

Once the registration is submitted, applicants should track their application status to ensure that there are no issues. After successfully registering, individuals will receive a Tax Registration Number (TRN) which is essential for fulfilling tax obligations in the future.

Conclusion

In conclusion, the deadline for natural persons registration under the UAE corporate tax regime is of paramount importance. Sole Proprietorship Businesses and individuals must remain vigilant in understanding and adhering to these timelines. By completing the registration process in a timely manner, natural persons can ensure compliance with the corporate Tax in UAE.