UAE Corporate Tax law widens scope, adds income from property for non-residents

UAE Corporate Tax law widens scope, adds income from property for non-residents

Dubai: The UAE Ministry of Finance announced the issuance of a cabinet decision on a non-resident person’s nexus in the UAE for the purpose of corporate tax, on Monday. According to the decision, foreign companies and other non-resident juridical persons will be subject to corporate tax on income derived from real estate and other immovable property located in the UAE and will be required to register for corporate tax purposes. This applies to both immovable property that is held or used in a business and immovable property that is held for investment purposes in the UAE. Non-resident juridical persons with immovable property will be subject to corporate tax on a net-income basis. This allows for relevant expenditure that meets the conditions set out in the corporate tax law to be deducted when calculating taxable income. Younis Haji Al Khoori, Undersecretary of the Ministry of Finance, said: “The corporate tax treatment of income derived from UAE real estate and other immovable property by foreign juridical persons is in line with international best practice which stipulates that income derived from immovable property is taxable in the country in which such property is located.” Real estate investment income earned from UAE immovable property