UAE sourced income and application of corporate tax on it

UAE sourced income and application of corporate tax on it

The income related to the services, where the services are provided or utilised or benefited in the UAE, will be considered UAE-sourced income

The worldwide income, including the UAE-sourced income, of a resident person is taxable in the UAE.

By Mahar Afzal/Compliance Corner Published: Sun 8 Jan 2023, 3:19 PM Last updated: Sun 8 Jan 2023, 3:37 PM

In our previous articles, we have discussed the income of the non-resident person would be subject to tax if the income pertains to the permanent establishment (PE) of the non-resident person in the UAE, it is UAE-sourced income or the income has been derived through the nexus, the non-resident person has in the UAE. The question arises, what are UAE-sourced income, PE, and nexus of non-resident person in the UAE? In this article, we have discussed the UAE-sourced income, and in our upcoming articles, we will discuss the others.

Article 13 of the UAE corporate tax law covers the UAE-sourced income, and the article categorises such income into three categories.

In the first category, the law describes that if the person is earning any income from the resident person, it will be considered UAE-sourced income. We have already discussed that the resident person includes the juridical person