UAE CORPORATE TAX REGISTRATION STARTS 15TH MAY, 2023
May 14, 2023New rule for international credit card users: 20% TCS to apply under LRS under Indian Tax Rule
May 18, 2023INDIVIDUALS TO BE SUBJECTED TO UAE CORPORATE TAX FOR BUSINESS INCOME IF TURNOVER EXCEEDS DH ONE MILLION
Ministry of Finance issued Cabinet decision no. (49) 0f 2023 on 17th May, 2023 specifying the applicability of Corporate Tax to Business Income of Resident and Non Resident individual.
An Individual is subjected to UAE Corporate Tax whereby he or she derives Income from business. The UAE Corporate Tax becomes applicable starting 1st June, 2023.
As per the decision issued by the Ministry of Finance, Businesses or Business Activities, conducted by a resident or non-resident natural person, shall be subject to Corporate Tax only where the total Turnover derived from such Businesses or Business Activities exceeds AED 1,000,000 (one million United Arab Emirates dirhams) within a calendar year.
Personal Income comprising of Wage/Salary, Income from Personal investment and Real Estate Investment (which does not require license) has been kept out of the purview of Corporate Tax and will not be considered as part of the Business Income Turnover.
Further, the individual would be required to register for Corporate Tax only if combined turnover from conducting a Business or Business Activities subject to Corporate Tax exceeds Dh 1 million.
The above decision provides relief to Individuals and demonstrates the UAE’s commitment to maintaining a clear and competitive tax framework for both local and foreign individual investors.
For clarification on Corporate Tax, you may reach out to us on info@luthraadvisors.com.
