The ruling clarifies the rules for applying corporate taxation to individuals who receive income from a business or related activity. At the same time, it is clarified that personal income of an individual received from real estate or investments is not subject to taxation. Individuals engaged in business or entrepreneurial activities will only be subject to corporation tax and registration if their combined turnover exceeds AED 1 million in a calendar year.
For example, if an individual resident in the UAE is engaged in an online business, the total annual turnover of which exceeds 1 million dirhams, then according to the new decision, such income will be subject to corporate tax. However, if the UAE resident also earns income from property rentals and personal investments, these sources of income will not be taxable as they fall under categories outside the scope.