As per the proposed new UAE corporate tax law coming into effect from or after June 1, 2023, individuals are subject to and exempt from corporate tax under certain criteria.
under corporate tax law, Individuals are natural persons who either carry out a business in the UAE as a freelancer, earn an income or carry out investments in the UAE. Resident in the UAE means spend at least 183 or more in calendar year .
In our blog, we cover how they are affected by corporate tax.
According to the Frequently asked questions on the Ministry of Finance (MoF), self employed individuals will be imposed with corporate tax when they carry out a business in the UAE under a commercial license such as a freelance license.
In other words, Individuals will not be subject to corporate tax based on any income earned from employment, real estate, investments in shares, and other personal income unrelated to a trade or business in the UAE.
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Therefore, individuals under most circumstances will not be subject to corporate tax. However, in reference to an individual having (or being required to obtain) a business license or permit to carry out business activity of any kind in the UAE, whether commercial, industrial, or professional, would be subject to corporate tax.
At Corporate Tax UAE, our experts can guide you on the impact of corporate tax on your business and help you with the complete process of registration so you can stay compliant. Give us a call now!
Abrar Ahmad holds a Master’s as well as an MPhil in Finance and has an extensive experience of 10+ years in managing all aspects of Taxation, VAT Consulting and Accounting. He also carries with him a working knowledge of corporate tax and has helped drive value and growth to the businesses of numerous clients.