The UAE Federal Tax Authority (FTA) issued a statement on 19 March 2025, reiterating that if a natural person conducts a business or business activity in the UAE during a calendar year, or subsequent years, and its total revenue in that calendar year exceeds AED 1 million, that natural person is taxable. In such cases, the eligible taxpayer must register and comply with all corporate tax obligations no later than 31 March of the calendar year following the year in which the AED 1 million revenue limit was exceeded.

The FTA clarified that a ‘natural person’ means a living human being of any age, whether resident in the UAE or elsewhere, and a natural person is subject to corporate tax to the extent that he/she carries on a business or business activity in the UAE. This applies whether the individual is a sole proprietorship or one of a group of individual partners in joint ventures, carrying on a business or business activity in the UAE.

The FTA has intensified its outreach to ensure that individuals subject to corporate tax submit their registration applications before the end of March 2025. This initiative aims to help taxpayers comply with tax regulations and avoid potential violations and administrative penalties.

As part of its efforts, the FTA launched a new SMS campaign on mobile phones, in collaboration with the UAE’s two main telecommunications companies – e& and Du – through which a message was sent to members of the UAE community.

The message reads: ‘Important Announcement: Individuals who conducted business in the UAE and generated revenue of AED 1 million or more in 2024 are required to apply for Corporate and Business Tax application before the 31st of March 2025 to avoid late registration penalties, for more information: https://shorturl.at/QFbXh.

“The SMS campaign is part of a comprehensive plan that we started implementing several months ago – in collaboration with the departments of economic development and the relevant authorities across the country. These reminders serve to educate, encourage, and assist natural persons who are subject to corporate tax and have not yet registered to do so, within the legal period ending 31 March 2025. In doing so, taxpayers will avoid late registration-related administrative fines,” said HE Khalid Ali Al Bustani, Director-General of the FTA. “As part of the cooperation and coordination between FTA and its strategic partners in the government and private sectors, we aim to increase the level of tax compliance and ensure the successful implementation of tax legislation.”