There is a new guide that the UAE has issued to establish who is liable to pay taxes.
United Arab Emirates: A new guide has been produced to determine who is due business tax.
The authority in the country strongly advises everyone who is relevant to do so to familiarize themselves with the new guide and the local laws.
Guide determines who is subject to taxes in the UAE.
With the implementation of the Corporate Tax Law on June 1, 2023, the Federal Tax Authority (FTA) has released new guidance that outlines the conditions that must be met in order to establish whether or not natural people are subject to the law.
Certain individuals in the United Arab Emirates are required to pay taxes.
A complete and simplified explanation and instructions are provided in this guide for natural persons who are realizing revenue in the United Arab Emirates. This enables these individuals to assess whether or not they are subject to corporate tax obligations.
The Foreign Trade Authority (FTA) strongly recommended that all natural persons (individuals) who are generating income in the United Arab Emirates (UAE) or conducting business in the UAE, whether in full or in part, consult the newly published guide. This would allow them to become acquainted with the corporate tax law, implementing decisions, and other pertinent materials that are accessible on the FTA's website.
United Arab Emirates' (UAE) Corporate Tax Law.
The Federal Trade Administration (FTA) underlined the significance of reading the guide in its entirety in order to get a transparent comprehension of the handbook's extensive material and definitions that are presented in the guide. There are a variety of real-world examples included in this guide that illustrate how the Corporate Tax Law applies to natural people who are conducting business in the United Arab Emirates, regardless of whether or not they are considered to be residents for the purposes of the Corporate Tax.
According to the guide, non-resident natural persons are subject to corporation tax in the event that they have a permanent operation in the United Arab Emirates and a total turnover that exceeds Dh1 million within a Gregorian calendar year beginning in 2024.