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UAE CORPORATE TAX LAW: New Guidelines Issued For Taxpayers

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发布日期: 2024年2月1日

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 1st June 2023.

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

The term natural person refers to a “living human person of any age, whether resident in the UAE or elsewhere”, according to the FTA.

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 AED 1 million within a calendar year as of 2024.

However, certain types of income such as employment income, personal investment income, or real estate investment income, are always exempt from corporate tax for natural persons.

The FTA urged all concerned natural persons (individuals) realizing income in the UAE, or conducting business - wholly or partly - in the UAE, to refer to the new guide, to familiarize themselves with the Corporate Tax Law, implementing decisions, and other relevant materials available.

The Federal Tax Authority clarifies that a natural person must register for corporate tax purposes and obtain a Tax Registration Number if their total turnover exceeds AED 1 million within a Gregorian calendar year as of calendar year 2024.