FTA issues individual criteria guide for corporate tax

The Federal Tax Authority (FTA) has issued a new guide outlining the criteria to determine whether individuals are subject to the Corporate Tax Law.

The guide provides a comprehensive and simplified explanation and instructions for the tax system that came into effect on June 1, 2023.

The FTA urged all concerned individuals earning income or conducting business – wholly or partly – in the UAE to familiarise themselves with the Corporate Tax Law guide, implementing decisions, and other relevant materials available on the FTA’s website.

The guide also includes a range of practical examples that explain how the Corporate Tax Law applies to both resident and non-residents,

It clarifies that an individual must register for corporate tax purposes and obtain a Tax Registration Number if his total turnover exceeds AED 1 million within a calendar year of 2024.

Non-residents are subject to corporate tax in cases where they have a permanent establishment in the UAE with a total turnover of the permanent establishment exceeding AED 1 million within a calendar year 2024.