The Federal Tax Authority (FTA) has issued new guidelines outlining the criteria to determine people who are subject to Corporate Tax Law, which came into effect on June 1, 2023. The guidelines provide a broad and simplified explanation and instructions for natural persons realizing income in the UAE, allowing them to determine whether they are subject to Corporate Tax.
The FTA urged all concerned individuals realizing income in the UAE, or conducting business in the UAE, to refer to the new guidelines. This can help the concerned people to familiarize themselves with the Corporate Tax Law, implementing decisions, and other relevant materials on the FTA’s website. The FTA stressed the importance of reading the whole guidelines to get a clear understanding of the complex content outlined in the guide. The guide includes various practical examples explaining how the Corporate Tax Law applies to natural persons conducting business in the UAE, whether they are residents or non-residents.
The guide elucidates that a natural person must register for corporate tax purposes and obtain a Tax Registration Number if his total turnover exceeds Dh1 million within a Gregorian calendar year, as of 2024. 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 Dh1 million within a Gregorian calendar year, as of 2024.
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