What expenses are deductible under UAE corporate tax?

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The federal decree law no. 47 of 2022, also known as the corporate tax law, was issued to implement corporate tax in the UAE. Businesses are advised to seek expert guidance from Tax Consultants Dubai to ensure corporate tax compliance in the UAE. This article primarily concentrates on non-resident persons who are required to register for corporate tax in the UAE.

Definition of a Non-Resident Person Under UAE Corporate Tax

Primarily, understanding the distinction between residents and non-residents is essential. As per the corporate tax guide for non-resident persons, a non-resident person is defined as someone who is not a resident person.

Resident Person Under UAE Corporate Tax Law Includes

• A natural person conducting business activities in the UAE.
• A juridical person registered or acknowledged within the UAE or registered outside the UAE but properly controlled and administered within the UAE.

Non-Resident Person Under UAE Corporate Tax Includes

• A natural person without residency but owning a Permanent Establishment (PE) in the UAE.
• A natural person without residency earns income from the UAE.
• A juridical person registered outside the UAE having a PE, presence, or fixed location for business in the UAE.
• A juridical person having a nexus in the UAE.

Read more: Tax Residency Certificate In UAE

Corporate Tax Registration Requirements for Non-Resident Persons UAE

Non-resident juridical persons in the UAE must register with the Federal Tax Authority (FTA) for corporate tax purposes and obtain a Tax Registration Number (TRN) if they have a Permanent Establishment or Nexus in the UAE.

Examples of Non-Resident Corporate Tax Registration UAE

Example One:
A foreign company earning income from UAE clients without PE or nexus is not required to register for corporate tax.

Example Two:
A foreign company earning rental income from property in UAE must register and pay corporate tax.

Corporate Tax Registration for Non-Resident Natural Persons UAE

Non-resident natural persons must register and obtain a TRN if they own a PE in UAE generating revenue exceeding 1,000,000 AED.

Corporate Tax Advisory Services in UAE

Businesses are advised to review Corporate Tax in Dubai, seek guidance from Tax Consultants in UAE, or Contact us for corporate tax advisory services.