1. Who is a Natural Person?
A natural person refers to any living human being, whether residing in the UAE or abroad, who conducts business or business activities in their own name, such as:
– Sole proprietors
– Individual partners in partnerships or joint ventures
2. When is Corporate Tax Registration Required?
A natural person must register for corporate tax if all the following apply:
1. They are a UAE resident or a non-resident with a permanent establishment in the UAE.
2. They conduct business or business activities regularly in the UAE.
3. Their total annual revenue exceeds AED 1 million.
The following types of income are excluded from corporate tax (and do not require registration):
– Salaries and wages
– Personal investment income (unlicensed)
– Real estate investment income (unlicensed)
3. Definition of ‘Business’ or ‘Business Activity’
Includes any industrial, commercial, agricultural, professional, or service-related activity carried out with continuity, independence, and regularity.
Note: Even short-term activities may qualify as business if conducted in a regular or organized manner.
4. What is Included in Revenue?
– Revenue = Total annual gross income before any deductions.
– Includes all income from business or business activities.
– Excludes salary, personal investment income, and real estate investment income.
5. Obligations After Registration
– File corporate tax return within 9 months of the end of the tax period.
– Maintain records for 7 years.
– Update registration details within 20 days of any change.
6. Cancellation of Registration
A person must apply for cancellation within 3 months if:
– They cease conducting business or business activity.
– In the event of death (legal representative must handle).
Note: Cancellation is only approved after filing all due returns and paying outstanding tax liabilities.
