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


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