The UAE’s Federal Tax Authority (FTA) has issued a decision setting a clear deadline for Corporate Tax registration, aligning with the UAE Corporate Tax Law. This move highlights the UAE’s commitment to a transparent and tax efficient framework.
Understanding these obligations is crucial for both resident and non-resident individuals to ensure compliance and avoid penalties. Failure to register by the deadline may result in penalties, underscoring the importance of adhering to the timeline.
Do Natural Persons Need to Pay Corporate Tax in the UAE?
Natural persons in the UAE are subject to Corporate Tax if they meet the following criteria:
• They conduct a business or business activity in the UAE, and
• Their total turnover from such activities exceeds AED 1 million within a calendar year (January to December).
A natural person not fulfilling the above mentioned conditions is not required to register for Corporate Tax.
What are the Income Streams Exempt from Corporate Tax
The following income streams are not considered business activities and are therefore exempt from Corporate Tax:
• Wages (e.g., employment income)
• Personal Investment Income
• Real Estate Investment Income
Tax Registration Timeline for Natural Persons
Natural persons conducting a business or business activity in the UAE must submit a Tax Registration application based on the following deadlines:
Documents Required for Tax Registration (Natural Persons)
Applicants must submit the following documents in the Registration application to be filed on EmaraTax portal:
• Trade License (if applicable)
• Emirates ID of the applicant
• Passport of the applicant
Note: Accepted file types are Pdf and Word with Maximum file size per document being 5 MB.
How We Can Help
Navigating Corporate Tax requires careful planning and can be complex, especially for natural persons with diverse income streams. Our team of tax and compliance experts can help your business ensure compliance with UAE tax regulations seamlessly.
For expert guidance and support in meeting your Corporate Tax obligations, contact us today for a consultation.
