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FTA Issues Guide for Non-Resident Persons for Corporate Tax Purposes

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Dubai November 4 2023:

Federal Tax Authority Issues Guide for Non-Resident Persons for Corporate Tax Purposes who derive State-Sourced Income in the UAE.

The Federal Tax Authority (FTA) has clarified the criteria for determining Non-Residents subject to Corporate Tax in the UAE; the instances that require registration of a Non-Resident for Corporate Tax purposes; Taxable Income and how it is calculated; as well as other requirements for compliance by Non-Residents subject to the Corporate Tax Law, which took effect on 1 June 2023.

The FTA included a comprehensive and simplified explanation along with general guidance in its guide for Non-Resident Persons, whether natural persons (individuals) or juridical persons (including public and private corporations) who derive income in the UAE to help them determine whether they are subject to Corporate Tax.

The FTA invited all Non-Resident Persons concerned, who derive income in the UAE, or those who conduct Business or part of their Business in the UAE to consult the new guidelines and refer to the Corporate Tax Law and relevant implementing Decisions.

Who should read this guide?

The guide should be read by any natural person or juridical person who is not considered to be a Resident Person as per the provisions of the Corporate Tax Law and is deriving any income from the UAE. It is intended to be read in conjunction with the Corporate Tax Law, the implementing decisions and other relevant guidance published by the FTA.