UAE issues guide to determine corporate tax liability for individuals – The National

UAE issues guide to determine corporate tax liability for individuals – The National

The UAE's Federal Tax Authority has issued a guide for natural persons (individuals) who generate income in the country or do business, to help them determine whether they are subject to corporate tax.The guide provides a "comprehensive and simplified" explanation and instructions for natural persons making income in the UAE, the FTA said on Sunday.The term natural person refers to a “living human person of any age, whether resident in the UAE or elsewhere”, according to the FTA.The guide clarified that a natural person must register for corporate tax purposes and obtain a Tax Registration Number if their total turnover exceeds Dh1 million ($272,294) within a calendar year from 2024.The guide is availabke on FTA website: https://tax.gov.ae//Datafolder/Files/Guides/CT/Taxation%20of%20natural%20persons%20-%2025%2011%202023.pdfNon-resident natural persons are subject to corporate tax in cases where they have a permanent establishment in the UAE with a total turnover exceeding Dh1 million within a calendar year as of 2024, the guide said.UAE corporate tax: What you need to knowHowever, 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 said.The UAE introduced the federal corporate tax with a standard statutory rate of 9