The most recent update regarding Corporate Tax in the UAE: individuals who engage in business activities, regardless of residency status. They may be subject to taxation based on their specific activities.
The Ministry of Finance in the UAE has recently revised the regulations regarding corporate taxes for individuals who are residents or non-residents and engaged in business activities. As per the new guidelines, any business run by an individual that generates an annual revenue of Dh1 million or more will be subject to corporate tax.
This determination provides a clear understanding of the taxation system for natural persons, commonly called ‘individuals.’ It ensures that only income generated from business or business-related activities is subjected to taxation. They should also note that personal gain, such as earnings from employment, investments, and real estate (without licensing requirements), is exempt from corporate tax.
Those who engage in business or business-related activities must register and pay corporate taxes only if their total revenue exceeds Dh1 million within a year.
Per the latest ruling, if a person residing in the UAE manages an internet-based enterprise and its total yearly revenue surpasses Dh1 million, then the earnings would be liable to corporate tax.