Under the UAE Corporate Tax Law, a person who is either a Resident or a Non- Resident is subject to UAE Corporate Tax Law. It can be either a company, a person carrying on business, etc.

Who is the Resident person ?

A resident can be any of the following:

• Juridical persons incorporated in the UAE ,
• Foreign juridical persons who effectively managed or controlled in UAE and  operate in the UAE through a permanent Establishment or having a taxable nexus.
• Natural persons engaged in a Business or Business Activity in the UAE, either

1. Directly or
2. Through an Unincorporated Partnership or
3. Through sole proprietorship.

Who is a Non- Resident person ?

A Non-Resident can be any of the following;

• Operate in the UAE through a permanent Establishment or
• Deriving UAE- sourced income,
• Having a taxable nexus.

At what rate Corporate tax law is charged for Taxable Income?

Taxable Income of AED 375,000 subject to Corporate Tax at rate of 0% and taxable Income exceeding AED 375,000 subject to Corporate Tax at rate of  9%.

At what rate Corporate tax law is charged for Qualifying Free Zone Person?

Qualifying Free Zone Person is charged for UAE Corporate tax at the rate of 0% on Qualifying Income and 9% on Taxable Income that is not Qualifying Income.

Is Limited Liability Companies subject to UAE Corporate Tax Law?

Yes, Limited Liability Companies are subject to UAE Corporate Tax Law.

Is Private Joint Stock Companies subject to UAE Corporate Tax Law?

Yes, Private Joint Stock Companies are subject to UAE Corporate Tax Law.

Is Public Joint Stock Companies subject to UAE Corporate Tax Law?

Yes, Public Joint Stock Companies are subject to UAE Corporate Tax Law.

Examples-

ABC, a Limited liability Company has a taxable income of AED 482,000 is subject to corporate tax ?

Yes, ABC, a limited Liability Company is subject to UAE Corporate tax at the rate of 9% , as it has a taxable income of AED 482,000 which is exceeding AED 375,000.