UAE Tax Simplified So Residents Don’t Pay When They Don’t Have To

Knowing not having to pay tax is such a relief even in a city like Dubai where you don’t always have to worry about paying taxis.

Living in Dubai, it’s often the last thing on our minds.

Good news, then, that a recent tax registration update has been clarified by the government to make sure everyone who’s exempt is aware they don’t have to cough up any extra dirhams.

A follow-up announcement emphasises that income derived from personal investments and real estate will not be considered taxable under the new corporate tax ruling.

The UAE’s Federal Tax Authority (FTA) confirms that business-owners here will be obliged to pay corporate tax if their annual turnover exceeds Dhs1million.

It comes as part of UAE Cabinet Decision No. (49) of 2023, that establishes guidelines for resident and non-resident individuals engaged in business or business-related activities in the country.

Personal income, including employment earnings, investments, and real estate (without licensing requirements), remains exempt from corporate tax.

Younis Haji Al Khouri, the Undersecretary of the Ministry of Finance, said: “The new Cabinet Decision demonstrates the UAE’s commitment to maintaining a clear and competitive tax framework for both local and foreign individual investors. “By simplifying the corporate tax system, the UAE continues to foster an attractive business environment that supports the growth of small businesses, start-ups, and the overall economy.”