Corporate Tax Registration in UAE for French Businesses

Corporate Tax Registration in UAE For French Businesses

All companies in UAE shall register for Corporate Tax including FZ companies. Any reliefs (Small business reliefs, business restructuring reliefs, qualifying group reliefs etc.) are applicable only while filing the Corporate Tax returns. Below table will give a clarity on the taxability and registration requirements as per UAE Corporate Tax.

Status

Person

Taxability on Income

Registration & return filing for CT requirement

Remarks

Juridical

Worldwide Income will be taxable except exempt income

Yes

Resident Person*

Natural

Income from UAE through business or business activity and Income from outside UAE which connected with business activity in the UAE.

Yes, If the annual turnover (from Jan to Dec) is more than 1 Million Dirham

Income from Salary, Wages, Real Estate Investment & Personal investment (which does not require a license), are not considered while checking the threshold of 1 Million Dirham

Permanent Establishment

Yes

Income attributable to the PE will be taxable in UAE

Juridical

Income through Nexus in UAE

Yes

Income from Immovable Property located in UAE is currently classified as Nexus

Non-Resident

Yes

Income attributable to the PE will be taxable in UAE

Natural

UAE Sourced Income**

Withholding tax applicable (Currently it is 0%)

UAE Sourced Income**

Withholding tax applicable (Currently it is 0%)

Below are considered as Resident Person for Corporate Tax purpose

All companies incorporated / established recognized as per UAE applicable legislation.

A company which is incorporated / established recognized as per the foreign legislation, but effectively managed and controlled in the UAE.

A Natural person who conducts business or business activity in UAE.

UAE Sourced Income – Some examples

Income from the sale of goods in the state

Income from services rendered or utilized or benefitted from the UAE

Income from movable or Immovable property in the UAE.

Income from sale of shares of a resident person.

Income from contract performed in the UAE.

Income from use or right to use of intellectual or intangible property in the UAE.

Interest earned from UAE subject to conditions

Insurance or reinsurance premium earned from UAE subject to condition.

Wed 27 Sep 2023

Registration Requirement Under UAE Corporate Tax

Registration Requirement Under UAE Corporate Tax It is important to understand for each person the...

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