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
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