Business Insights

FTA Issues Guide Clarifying Corporate Tax Law Applicability

The Federal Tax Authority (FTA) newly released a comprehensive guide delineating the parameters for identifying natural persons liable under the Corporate Tax Law, which commenced on June 1, 2023.

This guide serves as a simplified manual offering instructions and clear explanations for individuals earning income in the UAE, aiding them in determining their status under the Corporate Tax Law.

Encouraging Reference and Awareness:

The FTA strongly advises individuals generating income in the UAE or engaged in any degree of business within the country to utilize the guide available on their website. 

Accessing this resource will familiarize them with the Corporate Tax Law, its implementation, and associated materials.

Comprehensive Understanding:

The guide’s emphasis lies in its comprehensive coverage, intending to provide a thorough understanding of corporate tax law’s various facets and terminologies. 

It incorporates practical examples elucidating how the law pertains to individuals conducting business in the UAE, irrespective of their residency status concerning Corporate Tax.

Parameters for Taxation:

The guide outlines that non-resident natural persons are liable for corporate tax if they maintain a permanent establishment in the UAE and achieve a total turnover surpassing Dh1 million within a Gregorian calendar year from 2024 onward.

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