UAE CT: Tax on Natural Persons I Tax on Sole Establishments I Registration of Natural Persons

The term "natural person" refers to a living human being, whether they reside in or outside of the UAE. If the natural person carries out business or business activities in the UAE as a sole proprietorship or unincorporated partnership or freelancer, there is no distinction between the individuals and their business.

If a person lives and does business in the UAE, they are a UAE tax resident. If a person lives outside the UAE but does business in the UAE and the double tax treaty between the UAE and their country is not applied, they are still considered a UAE tax resident. However, if the double tax treaty is invoked, generally they are considered a nonresident for UAE tax purposes.

Natural persons conducting business or business activities in the UAE and generating annual gross revenue exceeding Dhs 1 million in a Gregorian calendar year, are required to register in the UAE for corporate tax purposes. They must file the CT return and are responsible for making any necessary payments. The eligibility for small business relief does not exempt them from the obligation to register for corporate tax purposes.