What is the definition of taxable persons under UAE Corporate Tax law?
Those preparing for UAE corporate tax received more clarity on various tax provisions when the government released the Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses on 9th December 2022. Federal Corporate Tax will be implemented starting on or after June 1st 2023 based on UAE corporate tax law. A thorough understanding of the law on taxable persons is essential to the preparation of the new tax.
In accordance with the UAE Corporate Tax Law, who is a taxable person?
A taxable person will be subject to corporate tax at the rates established by the Decree Law, according to article 11 of the UAE corporate tax law. As per the law, a taxable person can be either a resident of the UAE or a non-resident who is subject to the UAE corporate tax law.
Who is considered a resident of the UAE for the purpose of corporate taxation?
UAE corporate tax law defines a resident person in Clause 3 of Article 11. If you are uncertain whether you are a resident person under corporate tax law, you can consult an experienced Dubai corporate tax adviser like Zyla accountants. There are several types of residents:
Persons incorporated, established or recognised under UAE law, including those in free zones
An entity incorporated, established, or recognised under the laws of another jurisdiction and effectively managed and controlled in the UAE
In the UAE, a person who conducts a business or carries out a business activity
In accordance with a Cabinet Decision issued by the UAE Ministry of Finance, any other person designated as a Resident Person
The UAE Corporate Tax Law defines a non-resident person as follows:
According to Clause 4 of Article 11 of the UAE corporate tax law, a person who is not treated as a Resident Person under Clause 3 of this Article may be treated as a Non-Resident Person. According to corporate tax law, corporate tax consultants in Dubai can help you determine if you are a non-resident person. Non-Resident Persons must also meet the following requirements:
According to Article 14 of this Decree-Law, maintain a permanent establishment in the UAE
As specified in Article 13 of this Decree-Law, derives income derived from UAE sources
In accordance with a Cabinet decision issued at the suggestion of the Finance Minister, the company has a nexus with the UAE
For more information, get in touch with Zyla Accountants today.