Taxable and Exempt Person | UAE Corporate Tax

UAE Corporate Tax Law has been released on 9th December 2022. MCA is planning to release insights into the various key aspects of the new UAE Corporate Tax (CT) Law for the benefit of its clients. The third snippet which is being released is on “Taxable and Exempt Person”. In order to be subject to CT, a person needs to be Taxable Person and conducting business or business activities. Exempt Person carrying non-business activities is not subject to CT. Therefore, it is of paramount importance to evaluate whether a person is a Taxable Person or an Exempt Person and also whether business activities are carried on. Taxable Person can be a Resident or a Non-Resident. Tax residency (i.e. resident or non-resident) determines the quantum of income which will be subject to CT in the UAE and therefore whether a Person is a Resident or a Non-Resident also needs careful analysis.

Please find enclosed our note on these provisions.