UAE FTA Issues New Corporate Tax Guide for Real Estate Investments by Natural Persons | CTGREI1

 UAE, 24 October, 2024 : The UAE Federal Tax Authority (FTA) has released a new guide, Corporate Tax Guide | CTGREI1  "Real Estate Investment for Natural Persons," outlining key concepts, rules, and examples for individuals regarding corporate tax obligations.

• Corporate Tax Threshold: Natural persons are only subject to UAE corporate tax if their total revenue from a business or business activity exceeds AED 1 million.
  
  
• Excluded Income Types: Wage income, personal investment income, and real estate investment income are excluded from the corporate tax threshold.
  
  
• Real Estate Investment Income: Includes selling, leasing, or sub-leasing property. However, activities requiring a license are subject to corporate tax if income exceeds AED 1 million.
  
  
• Exemption for Residential Leasing: A natural person leasing out residential property in their own name is not subject to corporate tax, even if a manager or agent is used.
  
  
• Holiday Home Rentals: Income from holiday home rentals, a licensable activity, is subject to corporate tax if revenue exceeds AED 1 million.
  
  
• Examples Provided: The guide includes illustrations on sole proprietorships, jointly owned property, and the interaction between non-licensable and business income.

Source : www.tax.gov.ae