Corporate tax liability for individuals
S.S. Legal Consultants L.L.C.
Head of Legal Practitioner at S.S. Legal Consultants L.L.C.
The UAE's Federal Tax Authority has issued a guide for "natural persons" who generate income in the country or do business, to help them determine whether they are subject to corporate tax.
The guide provides a "comprehensive and simplified" explanation and instructions for natural persons making income in the UAE.
The term natural person refers to a “living human person of any age, whether resident in the UAE or elsewhere”, according to the FTA.
The guide clarified that a natural person must register for corporate tax purposes and obtain a Tax Registration Number if their total turnover exceeds Dh1 million ($272,294) within a calendar year from 2024.
The guide is available on FTA website: https://tax.gov.ae//Datafolder/Files/Guides/CT/Taxation%20of%20natural%20persons%20-%2025%2011%202023.pdf
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 calendar year as of 2024, the guide said.