Corporate Tax


Cabinet Decision No. 49 of 2023 

On categories of Businesses or Business Activities conducted by Resident or Non-Resident Natural Persons that are subject to Corporate Tax

As per the Federal Decree Law No. 47 of 2022, income earned by a natural person, either resident or non-resident, from Business or Business Activity in UAE will be subject to Corporate Tax. It was further provided that a decision specifying the categories of Business or Business Activity that are subject to Corporate Tax will be issued.

In this regard, the Cabinet in the current Decision No. 49 of 2023 has specified that Businesses or Business Activities Conducted by a natural person shall be subject to Corporate Tax only where total Turnover derived from such Businesses or Business Activities exceeds AED 1 million in a calendar year.

Further, income of a natural person from following sources will be out of scope from UAE Corporate Tax:

a. Employment
b. Personal investment (activity which does not require a Licence nor considered as commercial business)
c. Real estate investment (activity which does not require a Licence)

Also, Corporate Tax registration is not required in respect of natural persons whose turnover from business does not exceed
the threshold of AED 1 million and / or earning the above prescribed sources of income.
This is again a welcome decision by the FTA providing much awaited clarity on the taxability of natural persons. Further, the
Turnover threshold of AED 1 million as well as no registration requirement provides a big relief to natural persons having
small scale business activities, running start ups or earning personal passive streams of income.

Our Team

Dr Abhishek Jajoo

Founder & Chairman

Serial Entrepreneur with expertise on REGTECH & Risk Management

Muhammad Altaf Hussain

Partner, Tax & Advisory

Ex Big 4 with 24 years of experience in Taxation, Advisory & Assurance

Harsh Bhojani

Associate Director

Ex Big 4 with 9+ years of post qualification experience in taxation advisory and compliances

Ajai Subramanian


Ex Big 4 with 8+ years of post qualification experience in tax advisory, compliance and litigation

UAE Corporate Tax
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