UAE Fredral Tax Authority has issued Corporate Tax Guide for Natural Persons

UAE Federal Tax Authority (FTA) introduced a comprehensive Corporate Tax Guide focusing on taxation criteria for natural persons. Here's a summary:

 Coverage of the Guide:

1.Application of Corporate Tax:

•Natural persons conducting Business Activities in the UAE fall under the Corporate Tax Law, defining them as Taxable and Resident   Persons.

 2.Determining Taxable Income:

•Corporate Tax applies when total turnover from UAE-based Business Activities exceeds AED 1 million annually.

•Specific incomes like wages, personal investments, and real estate earnings are exempt from Corporate Tax calculations concerning this threshold.

Key Considerations:

1.Threshold Criteria:

•Examples and scenarios illustrate exemptions for wage, personal investment, and real estate income from Corporate Tax calculations.

2.Obligations for Exceeding Threshold:

•Natural persons surpassing the AED 1 million turnover threshold must comply with Corporate Tax regulations, including registration, return filing, and payment.

3.Practical Scenarios and Calculations:

•Detailed examples illustrate various scenarios, such as artists, influencers, and professional services, shedding light on Corporate Tax implications.

4.Transactions and Compliance:

•Insights into Corporate Tax calculations, dealing with related parties and compliance requirements for tax registration are provided.

 Practical Insights:

The provided examples offer clarity on Corporate Tax implications for natural persons engaged in diverse Business Activities within the UAE. This guide aims to assist in understanding and complying with Corporate Tax regulations relevant to different types of businesses operated by natural persons.