Is your business income exempt from corporate tax?

Is your business income exempt from corporate tax?

If the juridical resident person is disbursing the profits in the form of dividends or any other form, the income in the hands of the recipient will be exempt from UAE CT law.

The juridical resident persons are subject to tax for their worldwide income. Natural persons conducting business in the UAE are liable to pay tax on the total income from the business. Non-resident persons are responsible for paying tax on the taxable income related to their permanent establishment (PE) in the UAE and income sourced from the UAE.

These are general provisions of the law, but there are exceptions like some persons are exempt from the UAE Corporate Tax Law, which we have already discussed in detail. In the same way, as given in article 22 of the law, the following income and related expenditure shall not be taken into account in determining the taxable income.

If the juridical resident person is disbursing the profits in the form of dividends or any other form, the income in the hands of the recipient will be exempt from UAE CT law. The juridical resident person can be a juridical person Incorporated in the UAE and a juridical person incorporated out of the UAE