The introduction of the UAE Corporate Tax Law in 2022 has delivered sizable adjustments to the tax panorama within the country. As companies and individuals adapt to this new tax regime, understanding specific requirements for registration is essential. One of the critical elements of the Corporate Tax Law relates to the registration of natural persons—individuals who are engaged in commercial enterprise activities or have taxable income within the UAE. The Corporate Tax Guide on Registration of Natural Persons (CTGRNP1 2025) gives an in-depth framework for knowledge of the responsibilities and techniques concerned. This manual aims to demystify the registration process for natural persons and offer clear instructions for compliance.
Introduction
This section unites the level of understanding of the context and significance of this manual. With the introduction of corporate tax within the UAE, the government has provided a well-structured method to make sure individuals and companies adhere to the brand new tax guidelines. The manual focuses particularly on the registration of natural persons, a key place that calls for careful attention. Whether you are a resident or non-resident within the UAE, this manual outlines the essential steps and documentation needed to comply with the Corporate Tax Law.
Overview
The Corporate Tax Law, as introduced in 2022, impacts not only the corporations but also natural persons. This section of the guide enables people to recognize the importance of registration and the way it impacts them, especially if they may be undertaking commercial enterprise activities or earning income in the UAE. Natural persons are required to register for corporate tax if their commercial enterprise activities fall below the purview of taxable operations, as distinct within the laws and regulation. This guide serves as a complete resource, simplifying the process for people to navigate via tax registration requirements.
Purpose of This Guide
The primary purpose of this guide is to explain the registration process for natural persons under the UAE Corporate Tax framework. It provides practical information on who qualifies as a taxable person, how to calculate turnover, the steps involved in registration, and the documentation required. By reading this guide, natural persons can ensure they meet all tax obligations, thereby avoiding potential penalties or fines for non-compliance.
Who Should Read This Guide?
This guide is intended for natural persons who are conducting business activities in the UAE or those who have taxable income derived from business operations. It is particularly relevant for:
- UAE residents and non-residents concerned in commercial enterprise activities.
- Individuals who earn income from diverse commercial enterprise sports, including trading, freelancing, or consultancy.
- Tax experts and agents who can handle company tax registrations for clients.
- Business owners and marketers search for clarity on their registration requirements.
How to Use This Guide
The guide is structured to walk you through each step of the tax registration process, from determining if you’re required to register, to understanding the calculation of turnover and the necessary documentation. You can refer to specific sections based on your needs:
- If you’re unsure whether you need to register, check the sections defining who qualifies as a taxable person and what constitutes taxable business activity.
- For step-by-step instructions on how to register, go to the relevant sections that provide detailed guidance on the registration process.
Legislative References
This guide is primarily based on Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses (Corporate Tax Law), in addition to related guidelines issued by the Federal Tax Authority (FTA). The legislative framework helps the manual’s commands and guarantees that people and companies recognize the legal context behind the registration obligations.
Status of This Guide
The information provided in this guide is current as of 2025 and displays the modern guidelines at the registration of natural persons for corporate tax. It serves as an authoritative reference for tax registration tactics; however, it can be a problem for updates or amendments. Users are advised to consult the Federal Tax Authority (FTA) internet site for the latest changes in tax regulation and procedures.
Tax Registration Obligations
Who is a Taxable Person?
A taxable person refers to any individual or entity that is required to pay taxes under the Corporate Tax Law. This consists of individuals who are engaged in business activities or earning income from commercial enterprise operations. The regulation outlines clear standards to become aware of who qualifies as a taxable individual, consisting of the dimensions and nature of their commercial enterprise activities.
Who is a Natural Person?
A natural person is an individual who conducts business activities within the UAE and earns income that falls in the scope of taxable business income. In the context of corporate tax, natural persons are required to register if their commercial enterprise activities meet the thresholds established by the law.
Resident Natural Person
A resident natural person is an individual who’s domiciled within the UAE or spends a sizable quantity of time within the country. If they conduct business activities that generate taxable income, they must register for company tax purposes.
Non-Resident Natural Person
Non-resident Natural Person are individuals who do not have permanent residence withinside the UAE but still engage in taxable business activities in the country. Even if they are not UAE residents, their commercial enterprise income generated in the UAE is subject to company tax, and they should adhere to the registration requirements.
What is a Business and a Business Activity?
A business activity is described as any activity that is carried out with the intention of generating profit. This can consist of trading, services, investment, and different types of business endeavors. Natural persons engaged in such activities are required to register for corporate tax if their turnover exceeds the set up thresholds.
Business Activities of a Natural Person That Are Subject to Corporate Tax
This section elaborates on the unique enterprise activities that can be a challenge to company tax, which includes professional services, real-estate dealings, and different entrepreneurial ventures. Natural persons engaged in those activities must ensure compliance with registration requirements.
When is a Natural Person Not Required to Register?
Not all natural persons are required to register. This segment provides information on the conditions under which an individual is exempt from registering for company tax, which includes while their business activities fall below the taxable turnover threshold.
3.3 Calculation of Turnover
Definition of Turnover
Turnover refers to the total revenue generated by a business before any deductions. It is a key determinant in assessing whether or not a natural person is needed to register in for corporate tax. If a person’s turnover exceeds the threshold set by the FTA, registration turns into mandatory.
Tax Period
The tax period for natural persons is generally aligned with the calendar year, and companies must calculate their turnover primarily based totally on this period to decide their eligibility for registration.
Case Studies
Case 1: A natural person who is a shareholder in a UAE joint stock company and does not operate independently will not need to register for Corporate Tax, as their income is classified as Personal Investment income.
Case 2: A natural person developing and selling accounting software from home, with annual sales of AED 1.2 million, must register for Corporate Tax because she is conducting business, and her turnover exceeds AED 1 million.
Case 3: A natural person who is a shareholder in a joint stock company and also runs a car rental agency from home, generating AED 1.5 million monthly, will not be subject to Corporate Tax on the shareholder income, but the income from the car rental business will require registration for tax purposes.
The Tax Registration Process for Corporate Tax
How to Register
The registration process for company tax includes filing software with the FTA, imparting essential data and documentation, and finishing the desired forms. Individuals will want to offer personal and business details to ensure accurate tax reporting.
The Tax Registration Processing Timeline
Once the software is submitted, the FTA will process the registration. This section provides an overview of the timeline involved and how long it generally takes for registration approval.
Other Procedural Aspects
Persons Already Registered for VAT and Excise Tax
For individuals already registered for VAT or excise tax, the process of registering for corporate tax will involve updating their records with the FTA to reflect their company tax status.
Deregistration
If a natural person ceases their business activity or passes away, they have to comply with the best steps for deregistration, making sure that their tax records are properly closed.
Case Study
- Mr. A, a UAE resident, ceased trading on December 31, 2025, and applied for deregistration from Corporate Tax on January 3, 2026. However, he must file his Tax Return for the period ending December 31, 2025, and pay any due Corporate Tax before the FTA can approve his deregistration.
- In contrast, Mrs. F, who operates two businesses in the UAE, also ceased one business on December 31, 2025. She has filed all required Tax Returns and has no outstanding Corporate Tax liabilities, allowing her to proceed without additional obligations.
Conclusion
The Corporate Tax Guide for Natural Persons is a complete resource that guarantees individual compliance with UAE’s Corporate Tax Law. By understanding the registration obligations, turnover calculation, and deregistration process, natural persons can navigate the system successfully and avoid penalties. As the UAE keeps adapting as an international enterprise hub, those steps are crucial for maintaining the country’s financial integrity. ebs Chartered Accountants can assist with seamless corporate tax registration, compliance, and auditing services, ensuring businesses meet UAE’s tax regulations efficiently.
FAQs
Who must register under the Corporate Tax Law for natural persons?
Natural persons engaged in taxable business activities or earning income in the UAE must register.
What is the turnover threshold for corporate tax registration?
Natural persons must register if their annual turnover exceeds the prescribed threshold.
Are there exemptions from corporate tax registration for natural persons?
Yes, if a natural person’s income is below the threshold or not derived from taxable business activities.
How can natural persons complete their tax registration?
Registration can be completed online through the Federal Tax Authority’s portal.