TAXATION OF NATURAL PERSONS UNDER THE CORPORATE TAX LAW
WHO IS SUBJECT TO CORPORATE TAX?
Corporate Tax is applicable to those who
- Engage in business or business activities in the UAE
- Maintain a Permanent Establishment in the UAE
- Generate income from sources within the UAE (i.e. state sourced income).
However, specific categories of income consistently remain free from Corporate Tax for individuals. In the case of natural persons, Corporate Tax does not extend to their employment income, personal investment income, or real estate investment income
VITAL ASPECTS
Individuals are liable to Corporate Tax for their business or business activities only if the total turnover generated from such endeavors in the UAE surpasses AED 1 million within a Gregorian calendar year.
Non-Residents subject to Corporate Tax.
When residing outside the UAE, a person becomes a Corporate Tax Resident if they conduct business in the UAE, unless a Double Taxation Agreement is invoked, any individual engaging in business activities in the UAE is considered a Resident Person for tax purposes.
Tax Rates
Turnover below AED 1 million
0%
Turnover above AED 1 million
up to AED 375,000 - 05
>AED 375,000 - 09