UAE: New guide issued determining who is subject to corporate tax

Authority urges all relevant individuals in the country to familiarise themselves with the new guide and the law

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By WAM

Published: Sun 24 Dec 2023, 6:50 PM

Last updated: Sun 24 Dec 2023, 9:40 PM

The Federal Tax Authority (FTA) has issued a new guide outlining the criteria to determine natural persons subject to the Corporate Tax Law, that came into effect on June 1, 2023.

The guide provides a comprehensive and simplified explanation and instructions for natural persons realising income in the UAE, enabling them to determine whether they are subject to Corporate Tax.

The FTA urged all concerned natural persons (individuals) realising income in the UAE, or conducting business – wholly or partly – in the UAE, to refer to the new guide, to familiarise themselves with the Corporate Tax Law, implementing decisions, and other relevant materials available on the FTA's website.

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The FTA emphasised the importance of reading the guide in its entirety to gain a clear understanding of its comprehensive content and definitions outlined in the guide. The guide includes a range of practical examples that explain how the Corporate Tax Law applies to natural persons conducting business in the UAE whether they are resident or non-resident for Corporate Tax purposes.

According to the guide, non-resident natural persons are subject to corporate tax in cases where they have a permanent establishment in the UAE with a total turnover exceeding Dh1 million within a Gregorian calendar year as of 2024.

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WAM

Published: Sun 24 Dec 2023, 6:50 PM

Last updated: Sun 24 Dec 2023, 9:40 PM

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