The Federal Tax Authority (FTA) is ramping up awareness efforts as the deadline for corporate tax registration approaches. Businesses and individuals subject to corporate tax must submit their registration applications by March 31, 2025, to comply with tax regulations and avoid penalties.
To reinforce this message, the FTA has launched an SMS campaign in collaboration with the UAE’s telecom providers, e& and Du. The initiative aims to inform individuals and businesses of their tax obligations through direct communication.
Who Needs to Register for Corporate Tax?
The FTA has clarified that individuals conducting business activities in the UAE are subject to corporate tax if their total revenue exceeds AED1 million ($272,000) in a calendar year. In such cases, taxpayers must register and fulfill corporate tax requirements by March 31 of the following year.
The term natural person refers to any individual, regardless of residency, who engages in business activities within the UAE. This applies to sole proprietors and individuals in joint ventures who conduct business in the country.
Penalties for Late Registration
Failing to register within the specified period will result in an administrative fine of AED10,000 ($2,700). The FTA is urging businesses to complete the process promptly to avoid unnecessary financial penalties.
For instance, if a business owner exceeded the AED1 million threshold by July 31, 2024, they must register for corporate tax by March 31, 2025. Additionally, their corporate tax return must be filed no later than September 30, 2025.
Simplified Registration Process
The UAE government has streamlined the corporate tax registration process through various platforms:
- EmaraTax Portal: Businesses already registered for VAT or excise tax can access EmaraTax, a 24/7 digital service, to complete their corporate tax registration.
- Government Service Centers: Taxpayers can also register through Tas’heel centers across the UAE.
- FTA Website & Social Media: The FTA continuously updates businesses with guidelines, legal clarifications, and instructional manuals on tax compliance.
Awareness and Compliance Efforts
Khalid Ali Al Bustani, Director-General of the FTA, emphasized the importance of these awareness campaigns. “We are working closely with economic authorities to increase compliance and ensure a smooth tax implementation process. Our goal is to educate businesses and individuals about their tax obligations to prevent late registration penalties.”
In the first quarter of 2025 alone, the FTA sent over 405,000 awareness messages, including 197,000 emails and 208,000 SMS notifications, reminding businesses of the upcoming deadlines.
To further assist taxpayers, the FTA has made corporate tax regulations, executive guidelines, and compliance manuals available on its official website.
With tax deadlines fast approaching, businesses are encouraged to act swiftly to ensure compliance and avoid penalties.
