UAE: Corporate tax guide on taxation of natural persons
The UAE federal tax authority released a guide that includes general guidance on taxation of natural persons
Corporate tax guide on taxation of natural persons
The UAE federal tax authority released a guide—the Corporate Tax Guide on Taxation of Natural Persons under the UAE Corporate Tax Law—that includes general guidance regarding:
- When the corporate tax applies to natural persons (i.e., when a natural person will be treated as conducting business activity in the UAE, and what income is considered related to such business activity for purposes of applying the AED 1 million annual turnover threshold for application of the corporate tax (noting that certain kinds of income such as wages, personal investment income and real estate income are not taken into account))
- The calculation of corporate tax for natural persons
- Interactions with other businesses
- Corporate tax compliance for natural persons
The corporate tax guide also provides several examples of the following:
- Different scenarios of natural persons working in the UAE
- Natural persons who are present in the UAE and are engaged in different types of businesses such as selling artworks, influencers, or practicing as physiotherapist
- Corporate tax calculations
- Transactions with related parties and connected persons
- Corporate tax compliance (i.e., tax registration)
Read a November 2023 report prepared by the KPMG member firm in the UAE
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.