FTA Publishes Guide for Natural Persons on Corporate Tax Compliance in the UAE



The Federal Tax Authority (FTA) has released a comprehensive guide for individuals (natural persons) generating income in the UAE, outlining the criteria for Corporate Tax liability under the new Corporate Tax Law effective from June 1, 2023. This guide aims to provide individuals with a clear understanding of their Corporate Tax obligations, whether they are conducting business in the UAE fully or partially.

The FTA encourages all individuals earning income in the UAE to consult this guide to become acquainted with the Corporate Tax Law, its implementing decisions, and additional resources. The guide is available on the FTA website and can be accessed directly via this link.

Key highlights from the guide include:

• A detailed explanation of the criteria determining Corporate Tax liability for individuals.
• Instructions on how to determine whether an individual is subject to Corporate Tax in the UAE.
• A clarification that individuals must register for Corporate Tax purposes and obtain a Tax Registration Number (TRN) if their total turnover exceeds AED 1 million within a Gregorian calendar year, starting from the calendar year 2024.
• Non-resident individuals are also subject to Corporate Tax if they have a permanent establishment in the UAE with a turnover exceeding AED 1 million within a Gregorian calendar year, starting from 2024.

The guide is designed to be user-friendly, featuring practical examples that illustrate how the Corporate Tax Law applies to both resident and non-resident individuals in the UAE.

By reading the guide thoroughly, individuals can gain a comprehensive understanding of the Corporate Tax Law's content, definitions, and how it pertains to their business activities within the UAE. This initiative by the FTA is part of its commitment to ensuring transparency and facilitating tax compliance for all taxpayers in the country.