Comprehensive Guide Released by FTA for Individual Corporate Tax Compliance
Abu Dhabi has seen the Federal Tax Authority (FTA) launch an informative new guide designed to assist individuals in understanding and complying with the UAE’s Corporate Tax Law, which became effective on June 1, 2023.
Understanding Your Corporate Tax Obligations
The FTA’s latest guide offers a clear and detailed explanation, providing individuals who earn income within the UAE with essential instructions on how to ascertain their Corporate Tax obligations.
A Helpful Resource for Individuals in Business
Individuals engaged in any business activities in the UAE, whether fully or partially, are encouraged by the FTA to consult this guide. It serves as a crucial resource to become acquainted with the intricacies of the Corporate Tax Law, its enforcement regulations, and supporting materials that are available on the FTA’s official platform.
Clarifying Corporate Tax for Residents and Non-Residents
The guide is comprehensive, containing practical examples that illuminate how the Corporate Tax Law is applied to individuals, whether they are UAE residents or non-residents for tax purposes.
Registration and Tax Number Requirements
Significant points from the guide include:
- Corporate Tax Registration: Individuals must register for Corporate Tax and acquire a Tax Registration Number if their annual Turnover surpasses AED 1 million within a calendar year, starting from 2024.
- Non-Resident Tax Criteria: Non-resident individuals who have a permanent establishment in the UAE are liable for Corporate Tax if that establishment’s Turnover exceeds AED 1 million in a calendar year, also starting from 2024.
In Summary
The FTA’s guide is a vital tool for individuals to navigate the new Corporate Tax Law effectively. By providing clarity and detailed information, the FTA ensures that individuals can confidently meet their tax obligations and understand the impact on their business activities within the UAE.
