Who’s Subject To Corporate Tax In UAE
Broadly, Corporate Tax applies to the following “Taxable Persons”:
- UAE companies and other juridical persons that are incorporated or effectively managed and controlled in the UAE;
- Natural persons (individuals) who conduct a Business or Business Activity in the UAE as specified in a Cabinet Decision to be issued in due course; and
- Non-resident juridical persons (foreign legal entities) that have a Permanent Establishment in the UAE (which is explained under [Section 8]).
Juridical persons established in a UAE Free Zone are also within the scope of Corporate Tax as “Taxable Persons” and must comply with the requirements set out in the Corporate Tax Law. However, a Free Zone Person that meets the conditions to be considered a Qualifying Free Zone Person can benefit from a Corporate Tax rate of 0% on their Qualifying Income (the requirements are included in [Section 14]).
Non-resident persons who do not have a Permanent Establishment in the UAE or earn UAE-sourced income unrelated to their Permanent Establishment may be subject to Withholding Tax (at the rate of 0%). Withholding Tax is a form of Corporate Tax collected at source by the payer on behalf of the income recipient. Withholding taxes exist in many tax systems and typically apply to the cross-border payment of dividends, interest, royalties, and other types of income.
More information about UAE corporate tax 👉🏽 https://mof.gov.ae/corporate-tax/