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May 15, 2026

This decision clarifies when a natural person is subject to UAE Corporate Tax. It mandates that businesses conducted by a natural person fall under Corporate Tax only if the total turnover from such activities exceeds AED 1,000,000 within a Gregorian calendar year. The decision explicitly excludes income derived from Wage, Personal Investment, and Real Estate Investment from being considered business activities subject to Corporate Tax, irrespective of the amount. Natural persons not meeting the AED 1 million turnover threshold from their business activities are not required to register for Corporate Tax.

This is not an Official Translation:

Specifying the Categories of Businesses or Business Activities Conducted by a Resident or Non-Resident Natural Person that are Subject to Corporate Tax

Cabinet Decision No. 49 of 2023

Issued 8 May 2023 – (Effective from 1 June 2023)

[GTL Notes]

The Cabinet has decided:

Having reviewed the Constitution,
Federal Law No. 1 of 1972 on the Competencies of Ministries and Powers of the Ministers, and its amendments,
Federal Decree-Law No. 13 of 2016 on the Establishment of the Federal Tax Authority, and its amendments,
Federal Decree Law No. 28 of 2022 on Tax Procedures,
Federal Decree-Law No. 47 of 2022 on Taxation of Corporations and Businesses,
Federal Decree-Law No. 50 of 2022 Issuing the Commercial Transactions Law,
Based on what was presented by the Minister of Finance and approved by the Cabinet,

Article 1 - Definitions

In the application of the provisions of this Decision, the following words and expressions shall have meanings assigned against each, unless the context otherwise requires:

Turnover	:	The gross amount of income derived during a Gregorian calendar year.
Wage	:	The wage that is given to the employee in consideration of their services under the employment contract, whether in cash or in kind, payable annually, monthly, weekly, daily, hourly, or by piece-meal, and includes all allowances, and bonuses in addition to any other benefits provided for, in the employment contract or in accordance with the applicable legislation in the State.
Personal Investment	:	Investment activity that a natural person conducts for their personal account that is neither conducted through a Licence or requiring a Licence from a Licensing Authority in the State, nor considered as a commercial business in accordance with the Federal Decree-Law No. 50 of 2022.
Real Estate Investment	:	Any investment activity conducted by a natural person related to, directly or indirectly, the sale, leasing, sub-leasing, and renting of land or real estate property in the State that is not conducted, or does not require to be conducted, through a Licence from a Licensing Authority.
Corporate Tax Law	:	Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses.

Other words and expressions in this Decision shall have the same meanings specified in the Corporate Tax Law, unless the context requires otherwise.

The Cabinet has decided:

Article 1 - Definitions

Article 2 - Categories of Businesses or Business Activities Conducted by a Natural Person that are Subject to Corporate Tax