The UAE Corporate Tax

The UAE Corporate Tax for Natural Persons

The UAE's Federal Tax Authority has issued a new corporate tax guide.

It is aimed to help natural persons (individuals), to determine whether they are subject to corporate tax.

When Natural Persons are Subject to Corporate Tax

– If their total annual Turnover derived from Business or Business Activities conducted in the UAE exceeds AED 1 million (~$272,000)

Physical residence in the UAE, whether by virtue of citizenship or a residency visa, is not the determining criterion for Corporate Tax purposes. If the natural person has not invoked the application of a Double Taxation Agreement, any natural person conducting Business or Business Activity in the UAE will be a Resident Person for purposes of the Corporate Tax Law.

Tax Rate on Taxable Income

• Under AED 375,000 – 0%

• Over AED 375,000 – 9%

Individuals will be able to benefit from the 0% on the first Dh375,000 of taxable income.

Income Exempt from Corporate Tax

• Wage

• Personal Investment

• Real Estate Investment