2023-05-17 09:06:49
The Ministry of Finance announced the issuance of Cabinet Decision No. (49) of 2023 regarding the tax treatment of resident and non-resident individuals who conduct business or business activities, for the purposes of the corporate tax law.
Younis Haji Al-Khoury, Undersecretary of the Ministry of Finance, said: “The new decision confirms the UAE’s commitment to implementing a competitive tax system for both local and foreign investors and individuals, by simplifying the corporate tax system, which contributes to enhancing the attractive business environment that supports the growth of small projects, startups and the economy in general. ».
The decision aims to clarify the details of applying the corporate tax system in the UAE to natural persons (individuals in this context) and to ensure that the tax is imposed on their business income or business activities only. to exercise) is not subject to corporate tax. Individuals who carry on business or business activities will be subject to corporate tax and tax registration requirements only if their combined sales value exceeds one million dirhams during the year.
For example, in the event that an individual residing in the UAE practices a business via the Internet and the value of its annual combined sales exceeds one million dirhams, then, according to the new decision, the business income of the individual residing in the country and obtained from his work via the Internet will be subject to corporate tax. However, if the individual residing in the country also generates income from rental properties and personal investments, these sources of income will not be subject to corporate tax as they fall under the categories outside the scope of the tax according to the issued decision.
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