FTA Issues Guide Outlining Criteria to Determine Natural Persons Subject to Corporate Tax

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Dubai December 24 2023:

The Federal Tax Authority (FTA) has issued a new guide outlining the criteria to determine natural persons subject to the Corporate Tax Law, that came into effect on 1 June 2023.

The guide provides a comprehensive and simplified explanation and instructions for natural persons realising income in the UAE, enabling them to determine whether they are subject to Corporate Tax.

The FTA urged all concerned natural persons (individuals) realising income in the UAE, or conducting business – wholly or partly – in the UAE, to refer to the new guide, to familiarise themselves with the Corporate Tax Law, implementing decisions, and other relevant materials available on the FTA’s website.

According to the guide, non-resident natural persons are subject to Corporate Tax in case where they have a permanent establishment in the UAE with a total Turnover of the permanent establishment exceeding AED 1 million within a Gregorian calendar year as from calendar year 2024.