UAE Tax LawCabinet Resolution No. (49) of 2023 Specifying the Categories of Businesses or Business Activities Conducted by a Resident or Non-Resident Natural Person and are Subject to Corporate Tax

Article (1) Definitions 1. For applying the provisions of this Resolution, the following words and expressions shall bear the meanings assigned thereto respectively, unless the context otherwise requires: Revenue : The gross income earned during a particular calendar year. Wage : The wage payable the employee in consideration of their services under an employment contract, whether in cash or in kind, and is payable on an annual, monthly, weekly, daily or hourly basis or based on the productivity, including all allowances, bonuses and any other benefits that accrue to the employee under the employment contract or the applicable legislation in the State.

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Cabinet Resolution of 2023 Specifying the Categories of Businesses or Business Activities Conducted by a Resi- dent or Non-Resident Natural Person and are Subject to Corporate Tax 2 Personal Investment : Investment activity a natural person conducts for their personal benefit and which neither is conducted through a License nor requires a License from a Licensing Authority in the State, and is not classified as a commercial business in accordance with the above-referenced Federal Decree-Law No. 50 of 2022. Real Estate Investment : Any investment activity conducted by a natural person and is directly or indirectly related to the sale, lease or sub-lease of lands or real estate property in the State and neither is conducted, nor requires to be conducted, through a License from a Licensing Authority. Corporate Tax Law : Federal Decree-Law No. (47) of 2022 on the Taxation of Corporations and Businesses. 2. Other words and expressions mentioned in this Resolution shall bear the same meanings assigned thereto in the Corporate Tax Law, unless the context requires otherwise.

Article (2) Categories of Businesses or Business Activities Conducted by a Natural Person and are Subject to Corporate Tax 1. For the purposes of Article (11.6) of the Corporate Tax Law, Businesses or Business Activities, conducted by a resident or non-resident natural person, shall be subject to Corporate Tax only where the gross revenue generated from such businesses or business activities exceeds AED 1,000,000 (one million United Arab Emirates dirhams) within one calendar year. 2. Notwithstanding Clause (1) of this Article, activities that generate revenue from the following sources shall not be classified as Businesses or Business Activities conducted by a resident or non-resident natural person that are subject to Corporate Tax, regardless of the amount of revenue generated from such activities:

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Cabinet Resolution of 2023 Specifying the Categories of Businesses or Business Activities Conducted by a Resi- dent or Non-Resident Natural Person and are Subject to Corporate Tax 3 a. Wage. b. Personal Investment income. c. Real Estate Investment income. 3. The natural person that is not conducting a business or business activities that are subject to Corporate Tax in accordance with this Article shall not be required to get registered for Corporate Tax purposes.