UAE’s Federal Tax Authority releases new Corporate Tax Law guide
New document incorporates practical examples
The Federal Tax Authority (FTA) in the United Arab Emirates has released a comprehensive guide outlining the criteria for determining natural persons subject to the Corporate Tax Law, which officially took effect on June 1, 2023, in the Gulf nation.
The newly released guide is a valuable resource, offering a simplified explanation and clear instructions for individuals generating income in the UAE. It empowers them to ascertain whether they fall under the country’s Corporate Tax law’s purview.
The FTA urges all concerned individuals, including those realising income or engaging in business activities wholly or partially within the UAE, to consult the new guide. The guide is designed to help them navigate the intricacies of the Corporate Tax Law, its implementing decisions, and other relevant materials accessible on the FTA’s official website.
The FTA encourages readers to review the guide by emphasising the significance of a thorough understanding. The document outlines the comprehensive content and definitions of corporate tax law. It incorporates practical examples illustrating how the law applies to natural persons conducting business in the UAE, whether resident or non-resident, for Corporate Tax purposes.
The guide clarifies the obligation for natural persons to register for Corporate Tax purposes and obtain a Tax Registration Number. According to the guidelines, registration is mandatory if an individual’s total turnover exceeds AED1 million within a Gregorian calendar year, effective from 2024.
For non-resident natural persons, the guide specifies that they will be subject to Corporate Tax if they maintain a permanent establishment in the UAE, with the total turnover of the permanent establishment surpassing AED1 million within a Gregorian calendar year, starting from 2024.
Given these developments, the FTA aims to ensure that all stakeholders are well-informed and equipped to navigate the Corporate Tax landscape in the UAE.
Interested parties are encouraged to refer to the new guide for comprehensive insights into their tax obligations and responsibilities.
For further details and to access the Corporate Tax Law guide, individuals are directed to visit the official FTA website.
Featured image: The Corporate Tax Law officially took effect in the UAE on June 1, 2023. Image: Towfiqu Barbhuiya