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UAE issues Ministerial Cabinet Decision Clarifying who Needs to Pay Corporate Tax
Dubai May 20, 2023:
UAE Ministry of Finance issues a new ministerial cabinet decision to clarify who needs to pay Corporate Tax in the country. It outlines rules on who should and should not pay Corporate Tax in the country. The new rules, announced on May, 17 2023 confirms that business owners in the UAE will only be liable to pay Corporate Tax if the turnover from the business activity is more than AED 1 m ($272,000) per year.
UAE’s Ministry of Finance issued Cabinet Decision No. (49) of 2023 on the treatment of resident and non-resident individuals undertaking a business or business activity, for Corporate Tax purposes. The decision clarifies the application of the Corporate Tax regime for individuals and ensure that only business or business-related activity income is taxed. Furthermore, any individual’s personal income notably from employment, real estate and investments will not subject to Corporate tax.