Navigating Corporate Tax: FTA’s New Guide for Individual Compliance
The Federal Tax Authority (FTA) has released a detailed guide to assist individuals in understanding their obligations under the UAE’s Corporate Tax Law.
Understanding Corporate Tax for Individuals
The FTA’s latest guide is a valuable resource for individuals earning income in the UAE. It offers a clear, step-by-step explanation to help determine if they fall under the scope of the Corporate Tax Law.
A Resource for Compliance
Individuals engaged in any business activities in the UAE, whether residents or non-residents, are encouraged to consult this guide. It’s designed to provide clarity on the Corporate Tax Law, its implementing decisions, and other pertinent information.
Key Highlights from the Guide
The guide is not just a rulebook but a practical companion filled with examples that illustrate how the Corporate Tax Law applies to individuals. It’s crucial for individuals to read the guide thoroughly to grasp the full extent of its content and the definitions it provides.
Registration and Tax Criteria for Natural Persons
One of the critical points in the guide is the registration requirement for Corporate Tax. It states that any natural person whose total turnover exceeds AED 1 million within a Gregorian calendar year, starting from 2024, must register for Corporate Tax and obtain a Tax Registration Number.
Tax Implications for Non-Resident Individuals
For non-resident individuals, the guide specifies that they are subject to Corporate Tax if they have a permanent establishment in the UAE and the turnover of this establishment exceeds AED 1 million within a Gregorian calendar year, also commencing from 2024.
In Conclusion
The FTA’s comprehensive guide is a testament to their commitment to transparency and support for individuals navigating the Corporate Tax landscape. By providing this resource, the FTA aims to facilitate a smoother transition into compliance for all relevant persons.
