The UAE Corporate Tax for Natural Persons
The UAE Corporate Tax for Natural Persons
The UAE’s Federal Tax Authority has issued a new corporate tax guide.
It is aimed to help natural persons (individuals), to determine whether they are subject to corporate tax.
When Natural Persons are Subject to Corporate Tax
– If their total annual Turnover derived from Business or Business Activities conducted in the UAE exceeds AED 1 million (~$272,000)
Physical residence in the UAE, whether by virtue of citizenship or a residency visa, is not the determining criterion for Corporate Tax purposes. If the natural person has not invoked the application of a Double Taxation Agreement, any natural person conducting Business or Business Activity in the UAE will be a Resident Person for purposes of the Corporate Tax Law.
Tax Rate on Taxable Income
- Under AED 375,000 – 0%
- Over AED 375,000 – 9%
Individuals will be able to benefit from the 0% on the first Dh375,000 of taxable income.
Income Exempt from Corporate Tax
- Wage
- Personal Investment
- Real Estate Investment