In this course, you will explore the intricacies of applying the Corporate Tax
Law to determine the taxable income of natural persons engaged in
business activities in the UAE. You will gain the skills to account for
residency status and different income sources, using the guidelines
provided in the November 2023 Corporate Tax Guide. By the end, you will
be adept at accurately calculating and filing tax returns for natural persons
with an annual turnover exceeding AED 1 million, in full compliance with
UAE Corporate Tax regulations.
1. Introduction
- Overview of the Corporate Tax Law in the UAE.
- Relevance of Corporate Tax for natural persons.
2. Applicability of Corporate Tax Law to Natural Persons
2.1 Definition of a Natural Person
- Explanation of who qualifies as a natural person.
- Special provisions for minors and incapacitated individuals.
2.2 Application of Corporate Tax Law
- Criteria for natural persons to be subject to Corporate Tax.
- Types of income exempt from Corporate Tax (employment income,
- Personal investment income, real estate investment income).
- Role of international agreements and Double Taxation Agreements (DTAs).
2.3 Key Considerations
- Definition and implications of being a Taxable Person and Resident Person.
- Threshold for Corporate Tax obligation (AED 1 million turnover).
- Types of income excluded from turnover for Corporate Tax purposes.
2.4 Resident vs. Non-Resident Natural Persons
- Criteria for determining residence for Corporate Tax purposes.
- Tax implications for residents and non-residents.
- Impact of Double Taxation Agreements on residency and tax obligations.
3. Taxable Income for Natural Persons
3.1 Scope of Taxable Income
- Definition of taxable income under the Corporate Tax Law.
- Income derived from Business or Business Activity conducted in the UAE.
3.2 Determination of Turnover
- Definition and calculation of Turnover.
- Exclusions from Turnover (wage, personal investment income, real estate investment income).
3.3 Business and Business Activities
- Definition of Business and Business Activity.
- Examples of activities that qualify and do not qualify as Business or Business Activity.
- Case-by-case evaluation of what constitutes a Business.
3.4 Income Related to UAE Business Activities
- Taxable income considerations for Resident and Non-Resident Persons.
Criteria for linking income to Business or Business Activity in the UAE
