A business is defined as any activity that is conducted regularly, on an ongoing and independent basis by any Person and in any location, such as industrial, commercial, professional, etc. However, short-term activities can be within the scope of Corporate Tax on the basis that they constitute a «transaction or activity, or series of transactions or series of activities» as prescribed in the definition. In this regard, the issue of recognizing an individual as a taxpayer must be considered on a case-by-case basis.
Regardless of the amount of income, the following are not considered as business or commercial income and are not subject to corporate tax:
• Salaries;
• Income from investments;
• Income from real estate investments.
If your business generates any of the above income and you do not conduct any other commercial activity in the UAE, you do not need to register.
If your business or commercial activity is subject to corporate tax, you are required to register for corporate tax by 31 March 2025.
Please note that registration for VAT and/or excise tax purposes does not exempt a taxpayer from registration for VAT purposes. Once registered, a person will be assigned a separate tax registration number for corporate tax purposes.
You can apply for corporate tax registration on the EmaraTax portal.
If you are no longer liable to pay corporation tax for any reason (e.g. you have closed your business), you should apply to deregister from the tax register, otherwise you will be liable to pay a penalty.
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