The new UAE Corporate Income Tax (CIT) applies not just to corporate entities such as companies, but also to natural (physical) persons operating sole proprietorships and being partners in unincorporated partnerships. A ‘natural person’ for this purpose is defined as an individual being resident in the UAE or abroad and engaged in a business or business activity in the UAE.

Hence, if the business activities of such individuals generate revenue exceeding 1 million AED (approx. 250,000 EUR) within the calendar year, they are required to register for CIT.

CIT was launched in 2024 and accordingly, e.g. if these persons exceeded 1 million AED (approx. 250,000 EUR) in their business revenue by 31 July 2024, they are required to register for UAE corporate tax by 31 March 2025 and submit the corporate tax return by 20 September 2025. Failure to meet the deadline will incur a fine of 10,000 AED (approx. 2,500 EUR).

Not sure whether you are required to register for CIT and how to do it? Speak to us to avoid penalties and ensure compliance with the UAE’s corporate tax framework. With over 20 years of international experience (www.bensonformations.com) and with specialization in taxes of different countries where we set up companies for our clients, we will provide you with a truly bespoke service to suit your business needs. Call us at +971 521 521 330 or email us at office@alphaprimedwc.ae.