On October 08,2023, Federal Tax Authority (FTA) released guide to provide general guidance on Non-Resident Persons. The key highlights are as follows-
- A Natural Person (who is not a Resident person) to be considered a Non-Resident Person if-
- has a Permanent Establishment in the UAE and has a Turnover attributable to their Permanent Establishment that exceeds AED 1,000,000 within a Gregorian calendar year
- Or Derives State Sourced Income.
- The concept of nexus is applicable only to a Non-Resident Person that is a juridical person and not a natural person.
- Practical explanations and examples to clarify key concepts such as “Permanent Establishment” (PE), “State Source Income”, and “Nexus in the UAE”.
- A Non-Resident Person that is a juridical person, derives only State Sourced Income and does neither have a Permanent Establishment in the UAE nor a nexus in the UAE, shall not register for Corporate Tax purposes.