Corporate Tax Guide on Registration of Natural Persons
On 29 December 2023, FTA issued the Corporate Tax Guide, which provides general guidance on Registration of Natural Persons for Corporate Tax purposes. The key highlights are as follows-
- Natural person includes sole establishments and individual partners in Unincorporated Partnerships that conduct a Business or Business Activity in the UAE.
- Natural persons conducting Business or Business Activities in the UAE are Resident Persons for Corporate Tax irrespective of their nationality, whether they hold a residency visa in the UAE, whether their income is sourced in the UAE or from abroad, or how much time they may physically spend in the UAE.
- State Sourced Income derived by a natural person who is a Non-Resident Person may be subject to Withholding Tax (currently the rate is 0%) and would not require a natural person to register with the FTA.
- The Tax Period of a natural person who conducts a Business or Business Activity that is subject to Corporate Tax, shall be the Gregorian calendar year i.e. 1 January until 31 December.
- The first potential Tax Period for a natural person is the 2024 Gregorian calendar.
