UAE Corporate Tax Registration for Natural Persons

Who is a Natural Person for Corporate Tax Purposes?

Under the UAE Corporate Tax regime, a natural person refers to an individual who conducts a business or business activity in the UAE in their own name, rather than through a separate legal entity.
This may include:
● Sole proprietors
● Freelancers and independent consultants
● Licensed professionals such as doctors, engineers, and legal advisors
● Individuals carrying on commercial activities under a trade license
● Partners in unincorporated partnerships
It is important to clarify that income earned from employment — such as salaries and wages — is not subject to Corporate Tax.

When is Registration Required?

Registration for Corporate Tax becomes mandatory when a natural person’s total annual turnover from business activities exceeds AED 1 million within a calendar year. The key considerations include:
● The AED 1 million threshold applies to gross revenue, not profit.
● The assessment is based on the Gregorian calendar year (1 January to 31 December).
● Once the threshold is exceeded, the individual must register within the deadline prescribed by the Federal Tax Authority (FTA).
Natural persons whose annual turnover does not exceed AED 1 million are not required to register.

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