May 17 2023

UAE Ministry of Finance Clarifies Corporate Tax Regime for Natural Persons

Source: IBFD Tax Research Platform News

The Ministry of Finance (MoF) of the UAE has issued a decision specifying the categories of business or business activities carried out by a resident or non-resident individual that are subject to corporate tax.

  • the Decision provides that natural person, whether resident or non-resident, engaged in business or business activities are subject to corporate tax and registration requirements only if their total turnover exceeds AED 1 million in a calendar year; and
  • the decision also stipulates that activities that generate income for individuals from employment, investments and real estate are not considered business or business activities and are not subject to corporate tax.

MOF Decision No. (49) of 2023 was issued on 8 May 2023 and will be effective from 1 June 2023.

It is available on UAE Minister of Finance website: Cabinet Decision No. (49) of 2023