Non-Residents In UAE Need Not Register For Corporate Income Tax


In the latest update to the UAE Corporate Tax regime, a non-resident person will not be required to register for tax if they only earn UAE-sourced income and do not have a permanent establishment in the UAE.

In addition, certain categories such as government- owned or controlled entities, as well as businesses in the extraction field, and those in non-extractive natural resource businesses that meet necessary conditions are also not required to register for the tax.

The exception stipulated in the decision is in ‘line with international best practices, whereby persons exempted from Corporate Tax such as the federal government, UAE government departments and authorities, other public institutions and other categories’, said a statement from the Ministry of Finance.

“Therefore, there is no need for these entities to register with the Federal Tax Authority as long as they continue to meet the exemption conditions, noted in the relevant articles of the Decree Law.”

Interestingly, non-residents can open bank accounts in the UAE.

The bigger corporate houses and stock market listed companies have already begun the registration processes for corporate tax, which comes into effect from June 1.

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