2 minutes
The UAE Ministry of Finance (MoF) has announced the issuance of a cabinet decision on a non-resident person's Nexus in the UAE for the purposes of corporate tax.
Foreign companies and other non-resident juridical persons will be subject to Corporate Tax in UAE on income derived from real estate and other immovable property located in the country and will be required to register in the Emirate for corporate tax purposes, the MoF said in a statement.
Also, read about 'FTA-Approved Tax Agents – How Can They Help Your Business?'
Corporate Tax in the UAE – New Update
The new update applies to both immovable property that is held or used in a business and immovable property that is held for investment purposes in the UAE, it said.
Real estate investment income earned from Emirates immovable property owned by foreign or UAE resident individuals, either directly or through a trust, foundation, or another vehicle that is treated as fiscally transparent for purposes of Corporate Tax in the UAE, would generally not be subject to corporate tax provided it is not a licensed business activity, the statement noted.
Real Estate Investment Trusts (REITs) and other Qualifying Investment Funds can avail an exemption from corporate tax on income derived from the investment in UAE immovable property, provided that the relevant conditions are met, it said.
The country started a 9% corporate tax, with relief for SMEs and some free zone activities.
Choose Jaxa: An FTA- Approved Tax Agent & One of the Top Auditing Firms in Dubai
Besides being among the top Auditing Firms in Dubai, Jaxa Is Now an FTA-Approved Tax Consultant in Dubai. It may be difficult for an in-house accountant to manage tax compliances in addition to regular business activities. However, you can obtain help from our qualified tax specialists regarding Corporate Tax in UAE. Kindly get in touch with us for more information regarding the corporate tax in the Emirates and all the related and latest updates.
