MOF issued Cabinet Decision No 49 of 2023 specifying the categories of Business or Business activities conducted by a Resident or Non-Resident Natural Persons that are subject to Corporate Tax(CT).
- Individuals conducting business or business activities shall be subject to CT if the consolidated turnover exceeds AED 1 million in a calendar year.
- However, the income earned by Individuals from following activities (regardless of the turnover) shall not be subject to CT.
- Wage Salary and other benefits under employment contract
- Personal investment income Investment Income earned in personal capacity that is not conducted or does not require to be conducted through license from licensing authority.
- Real estate Investment income Income from real estate activity such as sale, leasing, sub leasing and rental of land or real estate property that is not conducted or does not require to be conducted through license from licensing authority.
- Individuals who are not subject to CT will not be required to register for CT and accordingly may not be required file tax returns.
Please refer to our separate communication in this regard for further details.