When a natural person is subject to corporate and business tax in the UAE

The term natural person takes on its ordinary meaning, and refers to a living person of any age, whether he is a resident of the United Arab Emirates or anywhere else. For minors or incapacitated individuals, corporate tax obligations must be fulfilled by their legal representative

Income of the following categories is considered to be the result of a business or business activity, it is ignored when determining revenue and is not subject to corporate taxation, regardless of the amount:

• Salary

· Income from personal investments.

· Income from real estate investments.

* Steps to determine whether a natural person is subject to corporate tax or not

1. If the revenue generated from business activities conducted in the country amounts to AED 1 million during a calendar year, the natural person is required to register for corporate tax.

1. Determine whether the natural person is a resident or non-resident for the purposes of the corporate tax law. If the natural person is a non-resident, they must register for corporate tax in both cases and:

a. Prepare independent financial statements.

b. Submit tax returns within the legal deadlines.

c -Maintain records and documents for 7 years.