The UAE Federal Tax Authority has published a guide outlining corporate tax rules for individuals earning income from real estate investments on 24 October 2024.
Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses and its amendments (“Corporate Tax Law”) was issued on 3 October 2022 and was published in Issue #737 of the Official Gazette of the United Arab Emirates (“UAE”) on 10 October 2022.
The Corporate Tax Law provides the legislative basis for imposing a federal tax on corporations and Business profits (“Corporate Tax”) in the UAE.
The provisions of the Corporate Tax Law apply to Tax Periods commencing on or after 1 June 2023.
This guide is designed to provide general guidance to natural persons that derive Real Estate Investment income. It focuses specifically on the application of Cabinet Decision No. 49 of 2023 which excludes from Corporate Tax the Real Estate Investment income derived by a natural person where the specified conditions are met.
The guide should be read by any natural person that derives income from real estate. It is intended to be read in conjunction with the Corporate Tax Law, the implementing decisions and other relevant guidance published by the FTA.
