Corporate tax registration — when exactly do you need to register?

Money & Business
1

Hi everyone, hoping someone who’s been through this can shed some light!

I’ve been freelancing here on a freelance permit for a while now, and I’m at the point where I’m considering whether to upgrade to a proper LLC or stay as I am. One thing that keeps confusing me is the corporate tax registration question — specifically when the obligation to register actually kicks in.

I’ve heard different things from different people: some say you need to register as soon as you have a trade licence regardless of revenue, others say there’s a threshold below which it doesn’t apply the same way. I don’t want to get caught out, especially with what I’ve been reading about penalties for late registration.

Has anyone gone through the process of figuring out their CT registration status recently? Did you use a tax consultant or manage to sort it out yourself through the FTA portal? And for those who run small operations — did it turn out to be more straightforward than you expected, or were there surprises?

Would really appreciate hearing from people who’ve actually dealt with it rather than just the official docs, which can be a bit hard to parse. Thanks in advance! :folded_hands:

2

Really good question, and you’re right to take it seriously because the penalties for late registration are real.

From what’s on the FTA portal (tax.gov.ae), the registration obligation is tied to having a taxable person status, which basically means holding a trade licence, not hitting a revenue threshold. The 0% rate applies to taxable income under AED 375,000, but that’s about what you pay, not whether you need to register. Even if you owe zero tax, you still need to register and file.

For freelance permits specifically, it’s worth checking whether your permit classifies you as a juridical or natural person, as that affects your situation.

A few people here have navigated the FTA portal solo and found it manageable once you have your documents ready. Others preferred a consultant just for peace of mind.

Definitely verify your specific setup directly at tax.gov.ae or call the FTA helpline.

Are you on a free zone freelance permit or mainland?