New tax regulations have taken the UAE closer to consolidating its position as an international business hub. FTA has prescribed the due date, which is 31 March 2025, to apply for the corporate tax with whom individual proprietorship businesses and unincorporated partnerships deriving revenues exceeding 1million AED need to come in compliance and in order.
Who Needs to Register?
If you are a person carrying on business or practicing a profession in the UAE and your revenue from such activity in any financial year exceeds 1million AED, then you need to register for corporate tax. A similar condition would apply in the case of a partner in an unincorporated partnership. For an Eligible Person, the first Tax Period will begin in the Calendar Year in which he exceeds 1 million AED.
For example, if your revenue has exceeded 1million AED by July 31, 2024, you are required to apply no later than March 31, 2025, for corporate tax registration. The filing due date for the tax return is September 30, 2025.
Understanding the Compliance Requirements
Registration to corporate tax is a matter not only of legality but also one ensuring financial security and legitimacy. The procedures for this are as follows:
- An application can be submitted via the EmaraTax platform:eservices.tax.gov.ae.
- Sign-up with an email ID and phone number.
- Fill out the corporate tax registration application form.
- Another alternative to submit applications is through Tas’heel centers.
The Corporate Tax Registration – Taxpayer User Manual is available on the FTA website and guides a person not conversant with the registration process through the steps involved.
Avoiding Penalties: The Cost of Non-Compliance
Failing to register for corporate tax within the stipulated timeframe results in an administrative penalty of 10,000 AED. Additionally, businesses that do not comply with ongoing tax obligations may face further financial repercussions and legal consequences.
To ensure smooth compliance, it is essential to:
- Keep accurate financial records.
- Understand taxable income components.
- Plan ahead for tax filing and payment deadlines.
Preparing for the Tax Transition
Many individuals and business owners may find tax compliance to be a complex and time-consuming process. Beyond mere tax registration filing, structuring finances efficiently to maximize deductions and maintain regulatory compliance is crucial.
That’s where BLZ steps in. With over a decade of experience in setting up businesses in the UAE, BLZ helps both individuals and companies work their way around corporate tax. From guiding the business through the registration process to ensuring tax-efficient strategies, BLZ ensures that you remain compliant while focusing on growth.
As the UAE works its way toward strengthening its regulatory framework, understanding and adhering to new tax laws are a must. Let BLZ be your trusted partner in making this transition seamless and hassle-free.