UAE Makes Corporate Tax Easier: New Guidelines Unveiled

The UAE Federal Tax Authority (FTA) has introduced a comprehensive guideline aimed at helping individuals understand the implications of the Corporate Tax Law, which became effective on June 1, 2023. The guideline is specifically tailored for residents earning income in the UAE, providing valuable insights to determine whether they fall under the Corporate Tax framework.

The FTA encourages all relevant individuals, especially those involved in business activities, whether full-time or part-time, to carefully review the guide. It serves as a valuable resource for comprehending the intricacies of the Corporate Tax Law, including detailed decisions and other essential information accessible on the FTA’s official website.

The guide emphasizes the importance of a thorough reading, offering a wealth of information to ensure compliance. It includes clear definitions and real-world examples illustrating how the Corporate Tax Law applies to individuals engaged in business within the UAE, irrespective of whether they are local or international participants.

In terms of specifics, the guide outlines that non-resident individuals may become subject to corporate tax if they maintain a permanent presence in the UAE and generate a total turnover exceeding Dh1 million within a calendar year, starting from 2024. Thus, a careful review of the guide is recommended to stay informed and compliant with the evolving tax regulations.