Corporate Tax Registration Timelines for Natural Persons in the UAE

Introduction

The UAE’s corporate tax regime, governed by Federal Decree-Law No. 47 of 2022, requires both juridical and natural persons to comply with tax registration requirements. FTA Decision No. 3 of 2024, effective from March 1, 2024, specifies the registration timelines for natural persons, whether resident or non-resident. This article explores these requirements in detail.

Resident Natural Persons

Natural persons who are resident in the UAE must register for corporate tax if their business turnover exceeds AED 1 million in a Gregorian calendar year, starting from January 1, 2024. The registration application is due by March 31 of the following year.

Example

Mr. A: Opened a jewelry shop on July 24, 2023, generating AED 1.5 million in 2023 and AED 4.1 million in 2024. Despite exceeding the threshold in 2023, only the 2024 turnover is relevant for corporate tax. Mr. A must register by March 31, 2025.

Non-Resident Natural Persons

Non-resident natural persons must register if their UAE-based business turnover, derived from a PE, exceeds AED 1 million in a Gregorian calendar year. The registration application is due within three months of meeting the turnover threshold.

Example

Mr. B: Owns a consultancy firm in the UK and starts a PE in the UAE on March 15, 2024. On December 31, 2024, his turnover exceeds AED 1 million. Mr. B will be required to register by March 31st, 2025.

Conclusion

Natural persons must closely monitor their business activities and turnover to ensure timely tax registration. Compliance with FTA Decision No. 3 of 2024 is essential to avoid penalties and ensure smooth business operations under the UAE’s corporate tax regime.

Summary

The article discusses the corporate tax registration timelines for natural persons in the UAE, as per FTA Decision No. 3 of 2024. It highlights that resident natural persons with a business turnover exceeding AED 1 million in a year must register by March 31 of the following year. Non-resident natural persons with a UAE-based business turnover exceeding AED 1 million from a permanent establishment (PE) must register within three months of meeting the threshold. Examples are provided for clarity, emphasizing the importance of timely registration to avoid penalties and ensure compliance with the UAE’s corporate tax regulations.

Disclaimer: 
The Content offer general guidance and should not be considered legal, financial, or tax advice. Consult qualified professionals for personalized guidance. While efforts have been made to ensure accuracy, no guarantee is provided for completeness or applicability to individual situations. Users are responsible for their interpretation and actions based on this information, at their own risk. 

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