The UAE Ministry of Finance today has announced the issuance of Cabinet Decision No. 56 of 2023 on a Non-resident Person’s Nexus in the UAE for the purposes of Federal Decree-Law No 47 of 2022 on the Taxation of Corporations and Businesses (“The Corporate Tax Law”).<\/p>\n\n\n\n
His\nExcellency, Younis Haji Al Khoori, Undersecretary of the Ministry of Finance,\nsaid: \u201cThe Corporate Tax treatment of income derived from UAE real estate and\nother immovable property by foreign juridical persons is in line with international\nbest practice which stipulates that income derived from immovable property is\ntaxable in the country in which such property is located. The UAE’s Corporate\nTax Law incorporates features that honor international taxation principles and\nensures neutrality between domestic and foreign companies earning income from\nimmovable property in the UAE.\u201d <\/p>\n\n\n\n
Foreign\ncompanies and other non-resident juridical persons will be subject to UAE\nCorporate Tax on income derived from real estate and other immovable property located\nin the UAE and will be required to register in\nthe UAE for Corporate Tax purposes. This applies to both immovable property that\nis held or used in a business and immovable property that is held for\ninvestment purposes in the UAE. <\/p>\n\n\n\n
Non-resident\njuridical persons with UAE immovable property will be subject to Corporate Tax\non a net-income basis. This allows for relevant expenditure that meets the\nconditions set out in the Corporate Tax Law to be deducted when calculating\ntaxable income.<\/p>\n\n\n\n
Real\nEstate Investment Income earned from UAE immovable property owned by foreign or\nUAE resident individuals, either directly or through a trust, foundation or\nother vehicle that is treated as fiscally transparent for UAE Corporate Tax\npurposes, would generally not be subject to Corporate Tax provided it is not a\nlicensed business activity. Further, Real Estate Investment Trusts and other Qualifying\nInvestment Funds may benefit from an exemption from Corporate Tax on income\nderived from the investment in UAE immovable property, provided that the\nrelevant conditions are met.<\/p>\n\n\n\n
All Cabinet Decisions and Ministerial Decisions and guidelines relating to the Corporate Tax Law are available on the Ministry of Finance’s website: www.mof.gov.ae.<\/p>\n","protected":false},"excerpt":{"rendered":"
The UAE Ministry of Finance today has announced the issuance of Cabinet Decision No. 56 of 2023 on a Non-resident Person’s Nexus in the UAE for the purposes of Federal Decree-Law No 47 of 2022 on the Taxation of Corporations and Businesses (“The Corporate Tax Law”). His Excellency, Younis Haji Al Khoori, Undersecretary of the …<\/p>\n","protected":false},"author":5,"featured_media":47188,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-54048","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-news"],"_links":{"self":[{"href":"https:\/\/www.uaebarq.ae\/en\/wp-json\/wp\/v2\/posts\/54048","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.uaebarq.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.uaebarq.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.uaebarq.ae\/en\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/www.uaebarq.ae\/en\/wp-json\/wp\/v2\/comments?post=54048"}],"version-history":[{"count":1,"href":"https:\/\/www.uaebarq.ae\/en\/wp-json\/wp\/v2\/posts\/54048\/revisions"}],"predecessor-version":[{"id":54049,"href":"https:\/\/www.uaebarq.ae\/en\/wp-json\/wp\/v2\/posts\/54048\/revisions\/54049"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.uaebarq.ae\/en\/wp-json\/wp\/v2\/media\/47188"}],"wp:attachment":[{"href":"https:\/\/www.uaebarq.ae\/en\/wp-json\/wp\/v2\/media?parent=54048"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.uaebarq.ae\/en\/wp-json\/wp\/v2\/categories?post=54048"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.uaebarq.ae\/en\/wp-json\/wp\/v2\/tags?post=54048"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}