UAE Cabinet Decision No. 49 on the Taxability of natural persons engaged in business activities

The UAE Cabinet has issued Cabinet Decision No. 49 of 2023 on the Categories of Businesses or Business Activities conducted by a resident or non-resident Natural Person that are subject to Corporate Tax for the purposes of Clause (6) of Article 11 of the Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses. 

Accordingly, it specifies: 

• A natural person, whether resident or non-resident, needs to pay Corporate Tax only when the total turnover derived from the businesses or business activities exceeds AED 1,000,000 (one million UAE dirhams) within a calendar year
• However, activities such as receiving wages, personal investment income, and real estate investment income are not considered businesses or business activities subject to Corporate Tax, regardless of the amount of turnover they generate.
• Further, if a Natural person is not engaged in businesses or business activities is not required to register for Corporate Tax.