UAE Corporate Tax Law: Who Needs to Pay Tax?

When the government released Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses on December 9, 2022, it gave businesses more information about how the different tax rules work. The UAE corporate tax law is the legal basis for the Federal Corporate Tax, which will go into effect on or after June 1, 2023, for financial years that start on or after that date. Before you can get ready for the new tax, you need to know what the law says about taxable persons.

Corporate tax consultants in Dubai can help you understand how a taxable person is defined by the corporate tax law. Read on to find out more:

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Who needs to pay taxes according to UAE Corporate Tax Law?

In Article 11 of the UAE corporate tax law, it says that taxable people will have to pay corporate tax at the rates set by the Decree Law. It says that a taxable person can be either a resident or a non-resident to whom the UAE corporate tax law applies and who is required by law to pay Corporate Tax.

Under the UAE Corporate Tax Law, who is a Resident?

In the UAE corporate tax law, a “Resident Person” is defined in Clause 3 of Article 11. Corporate tax advisers in Dubai can help you figure out if, under the corporate tax law, you are a resident person. Any of the following can be a Resident Person:

• A legal person who has been set up, recognised, or incorporated in the UAE, including a person in a free zone.
• A legal entity that was set up, recognised, or incorporated under the laws of a country other than the UAE and is effectively managed and controlled in the UAE.
• A person who runs a business or does business activities in the UAE
• Any other person who the UAE Minister of Finance says is a resident person in a Cabinet Decision

Under the UAE Corporate Tax Law, who is a non-resident person?

Article 11, Clause 4, says that a person can be treated as a Non-Resident Person if they are not treated as a Resident Person under Clause 3 of this Article. Corporate tax consultants in Dubai can help you figure out if, according to the corporate tax law, you are a Non-Resident Person. The non-resident will also have to meet the following requirements:

• Article 14 of this Decree-Law says that a business must have a permanent location in the UAE.
• Article 13 of this Decree-Law says that this person gets money from the UAE.
• Has a connection to the UAE, as stated in a Cabinet decision made at the suggestion of the Minister of Finance.
• Any other person who the UAE Minister of Finance says is a resident person in a Cabinet Decision

Keep reading : Corporate Tax in Dubai UAE 2023

Corporate tax consultants in Dubai can help you

Businesses in the UAE that are getting ready for corporate tax can use the tips in this blog to make sure they follow the rules. You can talk to the best corporate tax consultants in Dubai, such as Black Swan, for more help. Our corporate tax consulting services in Dubai include CT Assessment & Advisory Services (one-time or on a retainer basis), CT Compliance Services, and CT Agent Services to Represent to Federal Tax Authority (FTA) of UAE in case FTA serves any notices. Use Black Swan’s corporate tax services in Dubai, UAE, to make sure your business pays its taxes and avoid any penalties. Talk to our consultants if you want tax advice you can trust.

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