On 24 December 2023, the UAE Federal Tax Authority (FTA) issued a release about publishing a guide outlining criteria for determining natural persons subject to Corporate Tax and their compliance requirements. The law came into effect on 1 June 2023.
The guide provides a comprehensive and simplified explanation and instructions for natural persons realizing income in the UAE, enabling them to determine whether they are subject to Corporate Tax.
The FTA urged all concerned natural persons (individuals) realizing income in the UAE or conducting business – wholly or partly – in the UAE to refer to the new guide, Taxation of Natural Persons under the Corporate Tax Law, to familiarize themselves with the Corporate Tax Law, implementing decisions, and other relevant materials available on the FTA’s website.
The FTA emphasized the importance of reading the guide to understand its comprehensive content and definitions outlined in the guide. The guide includes a range of practical examples explaining how the Corporate Tax Law applies to natural persons conducting business in the UAE, whether resident or non-resident, for Corporate Tax purposes.
The guide clarifies that a natural person must register for Corporate Tax purposes and obtain a Tax Registration Number if his total Turnover exceeds AED 1 million within a Gregorian calendar year as of calendar year 2024.
According to the guide, non-resident natural persons are subject to Corporate Tax in cases where they have a permanent establishment in the UAE with a total Turnover of the permanent establishment exceeding AED 1 million within a Gregorian calendar year as of calendar year 2024.
