The UAE Corporate Tax Law (CT Law) was introduced in 2022 and applies to all UAE-resident corporations, regardless of their size or industry. The CT Law defines a taxable person as a juridical person incorporated, established, or recognized under the laws of the UAE, including a free zone person, or a natural person who carries out a business or business activity in the UAE.
Corporate tax consultants in Dubai can assist you to understand how the corporate tax law defines a taxable person. Keep reading to know more about it.
The UAE Corporate Tax Law (CT Law) defines a taxable person as a juridical person or a natural person who carries out a business or business activity in the UAE.
Judicial persons include companies, limited liability partnerships, and other legal entities that are incorporated or established under the laws of the UAE.
Natural persons include individuals who carry on a business or business activity in the UAE.
The CT Law also defines two types of taxable persons: resident persons and non-resident persons.
Resident persons are taxable persons who are:
- Incorporated or established in the UAE.
- Effectively managed and controlled in the UAE.
- Carries out a business or business activity in the UAE.
Non-resident persons are taxable persons who are not resident persons. However, a non-resident person may be liable to corporate tax in the UAE on certain income, such as income from a permanent establishment in the UAE.
The UAE Corporate Tax Law (CT Law) defines a resident person as a taxable person who is:
- Incorporated or established in the UAE.
- Effectively managed and controlled in the UAE.
- Carries out a business or business activity in the UAE.
- Incorporated or Established in the UAE
A taxable person is considered to be incorporated or established in the UAE if it is:
- Incorporated under the laws of the UAE.
- Established in the UAE through a branch, representative office, or other permanent establishment.
- Effectively Managed and Controlled in the UAE
A taxable person is considered to be effectively managed and controlled in the UAE if it:
- Key management and control functions are exercised in the UAE.
- The principal place of business is in the UAE.
- Carries out a Business or Business Activity in the UAE
A taxable person is considered to be carrying out a business or business activity in the UAE if it:
- Has a physical presence in the UAE.
- Renders services in the UAE.
- Sells goods in the UAE.
The UAE Corporate Tax Law (CT Law) defines a non-resident person as a taxable person who is:
- Not incorporated or established in the UAE.
- Not effectively managed and controlled in the UAE.
- Does not carry out a business or business activity in the UAE, except through a PE in the UAE.
PE In The UAE
A permanent establishment (PE) is a fixed place of business through which a business is wholly or partly carried on. A PE can be a place of management, a branch, an office, a factory, a workshop, a mine, an oil or gas well, a quarry, or any other place where the business is carried on.
Non-Resident Persons With A PE In The UAE
A non-resident person with a PE in the UAE is liable to corporate tax on the profits attributable to the PE. The profits attributable to the PE are determined in accordance with the CT Law.
Non-Resident Persons Without A PE In The UAE
A non-resident person without a PE in the UAE is liable to corporate tax on certain income, such as:
- Income from UAE sources, such as interest, dividends, and royalties.
- Income from the sale of UAE real estate.
- Income from the provision of services in the UAE.
Corporate Tax Consultants in Dubai
Businesses in the UAE that are preparing for corporate tax can use the insights provided in this blog to ensure compliance. For further assistance, you can consult with a corporate tax consultant in Dubai.
A corporate tax consultant can help you with a variety of tasks, including:
- Understanding the UAE Corporate Tax Law.
- Determining your tax liability.
- Preparing your tax returns.
- Representing you before the Federal Tax Authority (FTA).
ebs is a leading corporate tax consultancy firm in Dubai. We offer a wide range of corporate tax services, including:
- CT Assessment & Advisory Services
- CT Compliance Services
- CT Agent Services
We can help you ensure corporate tax compliance and avoid relevant penalties. Talk to our consultants for tax solutions that you can count on.
Here are some of the benefits of working with a corporate tax consultant in Dubai:
- You can get expert advice on the UAE Corporate Tax Law.
- You can save time and money by having a professional prepare your tax returns.
- You can avoid the risk of making mistakes that could lead to penalties.
- You can get peace of mind knowing that your tax affairs are in the hands of a qualified professional.
If you are a business in the UAE that is preparing for corporate tax, we encourage you to consult with a corporate tax consultant such as ebs. It is the best way to ensure that you are compliant with the law and that you are avoiding any unnecessary penalties.