The UAE Ministry of Finance has clarified which businesses in the emirate are subject to corporate tax and how much.
According to foreign media, the Ministry of Finance of the United Arab Emirates has issued an explanatory statement regarding the decision to apply corporate tax to UAE residents and non-residents, which states that the corporate tax law in the country has been simplified. is going. This will boost small business ventures, new companies and the economy. The new tax law will be applied to investors, both domestic and foreign.
Finance Secretary Yunus Haji Al Khoury has said that corporate tax will not be applicable on the income of individuals from employment, investment and real estate business, however, individuals who are doing business or are associated with corporate tax business and their total transactions will be exempted. If the amount exceeds one million dirhams during a year, tax will be applicable on them.
The official resolution also gave an example regarding taxation, which said that if a person in the UAE is doing business through the Internet and the total amount of annual transactions exceeds AED 1 million, then under the new ruling, the The income will be taxed.
The statement further said that if a resident of the emirate has earned income by renting out property or has earned something through private investment, then corporate tax will not be applicable on his income.
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