Will natural persons be subject to UAE Corporate Tax?

A natural person shall be subject to UAE Corporate Tax in case they derive an annual Turnover exceeding AED 1 million from a ‘Business’ or ‘Business Activity’ in the UAE, as defined by the Corporate Tax Law and in Cabinet Decision No. 49 of 2023.

A natural person will be subject to UAE Corporate Tax when performing any Business or Business Activity generating an annual Turnover in excess of AED 1 million. This excludes income generated by a natural person from the following sources, that are not considered as Businesses or Business Activities:

  • Employment income,
  • Personal Investment income,
  • Real Estate Investment income.

UAE Corporate Tax does not apply on the salary and wages derived by employees in consideration for their services under an employment contract, including all allowances and bonuses.

Interest and other Personal Investment and savings income earned by a natural person in their personal capacity will not be subject to UAE Corporate Tax.

Personal Investment income is income earned by a natural person from investment activities conducted in their personal capacity including interest or dividends. It excludes income from a commercial business, or from activity conducted, or required to be conducted through a Licence from a Licensing Authority in the UAE.

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