FTA sets March 31, 2025, deadline to avoid penalties under new tax regime
Dubai, UAE — March 24, 2025:
The UAE Federal Tax Authority (FTA) has issued a clear reminder that all individuals, including freelancers and social media influencers, earning more than AED 375,000 annually must register for Corporate Tax by March 31, 2025, or face administrative penalties.
This deadline applies to natural persons engaged in business activities who exceeded the income threshold in 2023. The FTA confirmed this in its recently released guide on natural persons and their obligations under the new tax framework.
According to Gulf News, the scope covers content creators, consultants, and other professionals who operate independently and generate qualifying income. Failing to register by the specified date will trigger late registration penalties of up to AED 10,000.
The new Corporate Tax law, which came into effect on June 1, 2023, aims to bring transparency and fairness to the UAE’s business environment. Businesses and self-employed professionals must align with FTA guidelines or risk fines and potential legal implications.
“Many freelancers and influencers are not fully aware that their activities now fall under taxable business income,” said tax consultants cited in Gulf News. They advise immediate action, especially for individuals previously operating informally.
To determine whether you fall under the Corporate Tax regime, the FTA suggests reviewing your annual business income, even if you don’t hold a formal business license.
► FTA: Corporate Tax Guide for Natural Persons
Percept’s Advisory:
At Percept, we strongly advise all freelancers, influencers, and independent consultants to review their 2023 income and initiate the registration process immediately if the AED 375,000 threshold has been crossed. Our tax experts are available to help you navigate the FTA registration system and ensure compliance well before the March 31, 2025 deadline. Book a free consultation with our team to safeguard your business from unexpected penalties.
