Individuals running a one-person business must register for corporate tax by March 31, 2025, as per the Federal Tax Authority’s (FTA) reminder.
This applies to those involved in ‘unincorporated partnerships’ as well.
The first tax period for such individuals is the calendar year.
If their income exceeds AED 1M in 2024, they are considered a ‘taxable person’.
If the AED 1M limit is surpassed in subsequent years, individuals must fulfil all corporate tax obligations.
The FTA defines a ‘natural person’ as anyone either residing in the UAE or abroad, but involved in business activities.
For instance, if an individual earns more than AED 1 million by July 31, 2024, they must register for corporate tax by March 31, 2025, and submit their tax return by September 30, 2025.
Penalty
Failure to register by the deadline incurs a penalty of AED 10,000.
The FTA encourages individuals to review the Corporate Tax legislation and related materials available on their website.
Registration is through the EmaraTax platform, where the ‘Corporate Tax Registration – Taxpayer User Manual’ offers detailed instructions.
New users can access EmaraTax at eservices.tax.gov.ae, create an account, and complete the application.
Alternatively, applications can be submitted via Tas’heel centres.
This update clarifies who must register for corporate tax in the UAE. Those who have yet to begin the process should act promptly. While registration is straightforward, there is preparatory work involved. Once registered, individuals will have time to address any additional FTA requirements.