The UAE’s tax landscape is evolving, and as part of the ongoing changes, the Federal Tax Authority (FTA) has urged all individuals conducting business in the UAE to register for Corporate Tax by March 31, 2025. This new requirement affects natural persons—those who run businesses or are involved in business activities within the country.
Who Needs to Register?
In simple terms, if you are an individual (a “natural person”) operating a business in the UAE, you need to pay attention to these changes. Whether you are a sole proprietor or a partner in an unincorporated partnership, if your business generates over AED 1 million in a calendar year, you are required to register for Corporate Tax.
For example, if your business revenue exceeded AED 1 million in 2024, you must submit your Corporate Tax registration application by March 31, 2025. After registration, you will also need to submit your Corporate Tax Return by September 30, 2025.
Why Is Corporate Tax Registration Important?
Registering for Corporate Tax is mandatory for businesses meeting the registration threshold. It’s essential not only for compliance but also to avoid the risk of penalties. Failing to register on time could result in a penalty of AED 10,000. By registering promptly, you’ll ensure that your business continues to operate smoothly and without unnecessary financial setbacks
How to Register for Corporate Tax?
The process of registering for Corporate Tax is straightforward thanks to the FTA’s EmaraTax platform. If you are already registered for VAT or Excise Tax, you can use your existing account to complete the Corporate Tax registration. If you’re new to the system, you can easily create an account on the EmaraTax platform with your email ID and phone number.
Once you have registered, you will need to follow the clear instructions provided by the FTA to complete the process and ensure you meet the deadline. The FTA has also published a ‘Corporate Tax Registration – Taxpayer User Manual’ that offers detailed guidance to help you.
What Happens If You Miss the Deadline?
If you fail to submit your Corporate Tax registration application by the deadline, you could face an administrative penalty of AED 10,000. That’s why it’s so important to get your registration completed well before the March 31, 2025 deadline.
Let Unicorn Global Solutions Help You
At Unicorn Global Solutions, we specialize in providing expert guidance on UAE business setup and compliance, including Corporate Tax registration. Whether you’re setting up a new business, or you’ve been operating for years, our team is here to support you through every step of the registration process. Text us on whatsApp or call us today
Frequently Asked Questions
Tourists can return 87% of their VAT paid, with an AED 4.80 fee removed for each tax-free tag attached to the receipt. The maximum cash refund is AED 35,000. Refunds can be issued in cash (up to the maximum), to a credit card, or via digital platform like WeChat, depending on the tourist's request.
Apply the calculation to subtract the VAT on purchases from the VAT on sales.
- The difference becomes the VAT payable if the output VAT exceeds the input VAT.
- If the input VAT exceeds the output VAT, the difference will be reimbursed, with no VAT due.
The ultimate consumer bears the VAT expense, while businesses collect and account for the tax, thereby serving as tax collectors on behalf of the government.
Login to the FTA e-Services Portal with your account and password. To access the Refund form, navigate to the 'VAT' tab and then the 'VAT Refunds' tab. Access the form under the 'Request VAT Refund' box by clicking the 'VAT Refund Request' button, as seen in the screenshot. Please complete each field on the form.
You can file your VAT return in a variety of ways, including online, via VAT return software, or through accountants or tax agents. As you can see, it makes little difference who files the return as long as it is completed on time and includes all required information.
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