In a recent announcement on Wednesday, May 17, 2023, the UAE unveiled a new ministerial decision that establishes comprehensive guidelines regarding the applicability of Corporate Tax in the country.
According to the newly outlined regulations, business owners in the UAE will only be obligated to pay Corporate Tax if their annual turnover from business activities exceeds AED1 million ($272,000). This threshold serves as the benchmark for determining the tax liability for businesses operating within the UAE.
Additionally, the decision explicitly states that income derived from real estate and personal investments will not be subject to taxation. This provision ensures that any individual’s earnings from these sources remain exempt from Corporate Tax.
The introduction of these regulations aims to provide clarity and transparency for businesses in the UAE, outlining the specific circumstances under which Corporate Tax will be imposed and offering exemptions for certain types of income.