The Federal Tax Authority (FTA) has released a new guide delineating the criteria for identifying natural persons affected by the Corporate Tax Law, effective June 1, 2023.
This guide aims to provide clear and simplified explanations and directives for individuals earning income in the UAE, assisting them in determining their liability under the Corporate Tax Law. The FTA encourages all relevant individuals generating income or engaging in business activities, wholly or partially, within the UAE to refer to this guide on the FTA’s website.
The FTA emphasizes the importance of thoroughly reviewing the guide, which contains comprehensive content and definitions related to Corporate Tax Law, along with practical examples illustrating its application to individuals conducting business in the UAE, regardless of their residency status for Corporate Tax purposes.
As the guide outlines, a natural person must register for corporate tax purposes and acquire a Tax Registration Number if their total turnover exceeds Dh1 million within a Gregorian calendar year, effective from 2024. Furthermore, the guide specifies that non-resident natural persons will be subject to corporate tax if they maintain a permanent establishment in the UAE with a total turnover surpassing Dh1 million within a Gregorian calendar year, starting from calendar year 2024.
