If you run any type of business as an individual in the UAE, you need to register for the country’s new corporate tax system. The deadline to register is March 31st, 2025. This article explains everything you need to know about the registration requirement.
Who Must Register as a Natural Person?
The government says all “natural persons” must register for corporate tax if they earned over Dh1 million revenue in 2024. Natural persons are sole business owners or partners in the UAE.
You count as a natural person if:
- You run a business yourself with no partners
- You co-own a business with others
And your total income went over Dh1 million in 2024 or later years.
Here are some examples that explain what counts as natural person businesses:
Sarah runs social media consulting by herself. She is considered a natural person engaging in business activities.
Faisal and Yassir jointly own an architecture company together in Dubai. They are natural person partners.
Other common sole owners and partners that qualify include:
- Restaurants with one owner
- Joint ventured construction firms
- Co-owned retail stores
Any of these businesses need to register if annual revenues exceed Dh1 million.
Registration Step-by-Step Process
You can easily register online yourself through the government’s tax portal called EmiraTax. Follow these steps:
Step 1: Get ID documents
You need to upload identity documents like your passport, UAE residence visa, Emirates ID card, and business licenses.
Step 2: Enter your total turnover amount
To register, you must prove your annual revenues crossed the Dh1 million minimum. Have your income statements from 2024 ready.
Step 3: Upload supporting financial statements
Documents like past tax returns, bank records, ownership papers, and accounting data help verify your turnover.
Step 4: Get approval and registration number
Shortly after applying, you’ll get an email saying you are registered with a unique corporate tax number. Save this number because you’ll need it for future tax filings and payments.
Missing the Deadline and Penalties
It is important not to miss the March 31, 2025 registration deadline. If you fail to register on time, fines and other potential penalties apply:
- Dh10,000 initial fine just for late application
- 5% of taxes owed for first late payment month
- 4% of taxes owed for each additional late payment month
And serious violations can cause banned business operations until everything becomes compliant.
Even if you missed the deadline, apply for registration ASAP. This shows good faith. And you lessen further penalties.
Conclusion
We covered the major things
Natural persons engaging in business activities need to know about registering for corporate tax in the UAE.
The key takeaways are:
Meet the March 31st, 2025 deadline for registration after crossing Dh1 million in turnover. Fines can add up fast if you fail to complete this requirement.
Get advice from accounting specialists where needed to stay compliant in the years ahead. Managing corporate tax obligations for the first time takes preparation and diligence.
Frequently Asked Registration Questions
A. No, your actual total income from 2024 determines if you met the Dh1 million threshold.
A. If that happens for a full tax year, you can deregister from corporate tax. But you still must file a final tax return.
A. Applying for registration immediately is wise. You lessen the risk of accumulating additional fines. An accounting advisor can help manage compliance.
A. Unfortunately, deadline extensions are not being granted currently even for small businesses. But some sectors like oil/gas do have separate rules.
